, Hong Kong
HSBC building, Hong Kong (Photo Source: HSBC)

HSBC profit after tax rose to $9.2b in H1

The board has approved an interim dividend of $0.09 per ordinary share for the period.

HSBC’s profit after tax rose to US$9.2b in the first half of 2022, or around US$800m higher than the first six months of 2021, the bank said in its latest financial announcement. 

The rise was partly thanks to a US$1.8b gain, which HSBC said was due to “the recognition of a deferred tax asset from historical losses, as a result of improved profit forecasts for the UK tax group, which has accelerated the expected utilisation of these losses,” the bank said in a statement.

HSBC’s board has approved an interim dividend of US$0.09 per ordinary share for H1 2022, to be paid in cash.

“Our first-half performance reflects the continued impact of our strategy, with gathering revenue momentum and tight cost control,” said Noel Quinn, group chief executive of HSBC. “ The progress that we’ve made growing and transforming HSBC means we are in a strong position as we enter the current rates cycle.”

ALSO READ: HSBC renews bancassurance partnership with Allianz

The bank’s reported operating expenses decreased by 4% due to foreign currency translation impacts and thet bank’s cost-saving initiatives. 

Quinn added that the bank is confident of achieving a return on tangible equity of at least 12% from 2023 onwards–which, if it happens, would represent HSBC’s best returns in a decade.

Following the promising profit performance in the first half of 2022, HSBC has released a specific dividend payout ratio guidance of around 50% for 2023 and 2024. 

The bank estimates that net interest income will total at least US$31b for 2022, and rise to at least US$37b for 2023.

ALSO READ: HSBC sells Russia business to Expobank; Julius Baer to freeze hiring

“We now aim to deliver 2023 adjusted cost growth of around 2%, compared with 20221, and intend to maintain strict cost discipline thereafter,” HSBC said in a statement. 

HSBC also aims to revert to paying quarterly dividends in 2023, although the bank expects the quarterly dividend for the first three quarters to initially be reinstated at a lower level than the historical quarterly dividend of $0.10 per share that was paid last 2019.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

HK approves 15 building plans in March 
Four were approved on Hong Kong Island, two in Kowloon, and nine in the New Territories.
75% of HK consumers shop on social media: report
Features such as payment methods, personalisation, and payment security are also crucial for attracting customers.