HSBC’s outgoing boss, Noel Quinn, has bowed out with a better-than-expected set of results and returned another €3bn (£2.3bn) to shareholders in his final set of results before handing over the reins.
The London-listed banking giant reported a pre-tax profit of $21.6bn (£16.8bn) for the first half of 2024, largely stable on the mammoth $21.7bn (£16.9bn) haul it made a year ago.
Its second-quarter result beat expectations, with profits defying forecasts of a fall by rising 1% to $8.9bn (£6.9bn).
The bank announced a further $3bn (£2.3bn) in share buybacks over the next three months and improved dividends in the latest round of shareholder returns.
Shares lifted 3% in morning trading on Wednesday.
It marks the last results for Mr Quinn before he leaves and passes on the top job to chief financial officer Georges Elhedery on September 2.
Mr Quinn said: “After delivering record profits in 2023, we had another strong profit performance in the first half of 2024, which is further evidence that our strategy is working.”
He added: “I have always been immensely proud of the heritage of this bank and the strategic role it plays in the world.
“My aim when I took this job was to deliver financial performance to match our standing. Working together, I believe we have done that and created a strong platform for growth.”
Mr Elhedery said he is not planning any major strategy overhaul when he takes on the top job, but will speed up plans already in place.
He said: “The strategy for the group is working and I’m committed to building on this strategy.
“We’re now in a position to accelerate the pace of execution of this strategy.”
He said HSBC is on track to cut costs over the full year, despite seeing operating expenses rise 5% in the first half to 16.3bn dollars (£12.6bn), driven largely by technology spend and investment, inflationary pressures, and an increase in the performance-related pay accrual.
HSBC added that its charges for expected bad debts fell to $300 million (£234m) in the second quarter, down by $600m (£468m) as it reduced its exposure to the Chinese real estate sector.
The group – which makes the bulk of its revenues in Hong Kong – said it will seek to navigate a difficult geopolitical landscape ahead of the US elections and mounting tensions between America and China.
In the UK, following the Labour Party’s recent landslide victory, Mr Quinn said the group is “positive about the Government’s intention to support growth”.
On his plans for the future following five years at the helm of HSBC and 37 years with the bank, he said he will take an initial break, but then “stay active once I’ve gone through that phase”.
“I want to keep my brain ticking over and remain engaged,” he said, adding that he will seek to maintain global connections and keep “helping businesses develop and grow, in whatever form that may take”.
