(MENAFN- Baystreet.ca)
HSBC's Pre-Tax Profit More Than Doubles To $10.8 Billion U.S.
Global bank HSBC beat analyst expectations in its 2021 first-half earnings and announced a new dividend payout as the global economy continues to bounce back from the pandemic.
The bank reported that its pre-tax profit more than doubled from a year ago to $10.84 billion U.S. between January and June of this year. Analysts had expected a $9.45 billion U.S. pre-tax profit during the six-month period.
Meanwhile, HSBC's revenue fell 4.5% from a year ago to $25.55 billion U.S. in the first six months of this year, broadly in line with the $25.52 billion U.S. that analysts had expected.
HSBC released a net $719 million U.S. in expected credit loss, thanks to a better economic outlook. Net interest margin, a measure of lending profitability, came in at 1.21% in the year's first half. That's 22 basis points lower than the same period last year.
The bank also announced an interim dividend of $0.07 U.S. per ordinary share. HSBC said it is targeting a dividend payout ratio of 40% to 55% of reported earnings per ordinary share for 2021.
HSBC shares in Hong Kong jumped more than 3% following its earnings release.
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