EconomyLens.com
No Result
View All Result
Wednesday, July 30, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Economy

HSBC banks lower profits on higher costs

Thomas Barnes by Thomas Barnes
July 30, 2025
in Economy
Reading Time: 6 mins read
A A
0
20
SHARES
244
VIEWS
Share on FacebookShare on Twitter

HSBC's first-half pre-tax profits were slightly down from the same period last year. ©AFP

London (AFP) – Bank giant HSBC said Wednesday that group profits fell in the first half on higher costs but noted that it was “well positioned” to deal with the effects of US tariffs. Profit after tax dropped by one third to $12.4 billion compared with the first six months of 2024, hit by restructuring costs and an impairment on its stake in a Chinese lender.

Related

Trump punishes Brazil with tariffs, sanctions over trial of ally Bolsonaro

Trump hits India with 25% tariff and ‘penalty’ over Russia ties

‘Class war’: outsiders moving to Puerto Rico trigger displacement

India exporters steel themselves as tariff clock ticks down

Mercedes-Benz welcomes EU-US deal after profits plunge on tariff woes

The London-headquartered bank is months into a shakeup aimed at simplifying the group’s structure and delivering $1.5 billion in annual cost savings in 2027. It comes as the bank sector faces volatile trading as a result of US President Donald Trump’s tariffs onslaught. “We have delivered these results in an ongoing period of uncertainty,” chief executive Georges Elhedery said in a call with reporters Wednesday. “It has become increasingly important to simplify the organisation and make it more agile,” he added.

The bank recorded a $2.1 billion impairment linked to its stake in China’s Bank of Communications, which was recapitalised by the country’s finance ministry this year. HSBC last year reported a $3 billion charge on the value of its stake in the Chinese lender, which was hit by property loan write-offs. Elhedery said that HSBC is “making positive progress” in its structural overhaul, which began in October, shortly after he became chief executive. Operating expenses increased four percent, which the bank partly attributed to restructuring and related costs.

The bank generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets. HSBC shares fell around 2.5 percent in morning deals on London’s top-tier FTSE 100 index despite a dividend payment and plans to repurchase up to $3 billion of shares.

Elhedery said HSBC is “well positioned to manage the changes and uncertainties prevalent within the global environment in which we operate, including in relation to tariffs”. He noted that a “broader macroeconomic deterioration” could impact returns in future years. Profit before tax fell more than 26 percent to $15.8 billion, falling short of analyst expectations. First-half revenue declined nine percent to $34.1 billion.

“Repositioning HSBC is not a simple task given its size and scale,” said Russ Mould, investment director at AJ Bell. “There are also challenges in its priority regions such as property market weakness in Hong Kong and mainland China.” He added that investors must continue to brace themselves for setbacks in its results well into 2026.

In Hong Kong, HSBC shares were down 3.8 percent at the close. Morningstar senior equity analyst Michael Makdad said the bank “needs to make sure that shareholders in Asia remain on board with the strategic direction…centred on simplification and intensive cost-cutting, but without a radical overhaul of the entire business model”. Makdad added that its immediate challenge is to find a replacement for board chairman Mark Tucker, who will retire by the end of 2025 after eight years helping to steer Europe’s largest bank.

© 2024 AFP

Tags: bankingfinanceprofits
Share8Tweet5Share1Pin2Send
Previous Post

‘Marathon at F1 speed’: China bids to lap US in AI leadership

Next Post

Stocks edge higher, dollar gains before tech earnings, Fed decision

Thomas Barnes

Thomas Barnes

Related Posts

Economy

Ryanair says dropping three French airports over ‘harmful’ tax

July 30, 2025
Economy

Mercedes-Benz profit plunges on tariff, China woes

July 30, 2025
Economy

Could copper tariff hurt US more than Chile?

July 30, 2025
Economy

LA wildfires push insurance losses to highest since 2011: Munich Re

July 29, 2025
Economy

US says Trump has ‘final call’ on China trade truce

July 30, 2025
Economy

Chinese, US officials meet for 2nd day of trade talks in Stockholm

July 29, 2025
Next Post

Stocks edge higher, dollar gains before tech earnings, Fed decision

US economy returns to growth in second quarter on tariff turbulence

GSK reports improved outlook despite US drug tariffs

Aston Martin pares outlook as US tariffs weigh

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

New York ruling deals Trump business a major blow

73

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

Trump punishes Brazil with tariffs, sanctions over trial of ally Bolsonaro

July 30, 2025

Tata Motors to buy Italy’s Iveco for $4.4 bn

July 30, 2025

Renault names Provost CEO after De Meo exit

July 30, 2025

Canada central bank holds rate steady citing US tariff ‘threats’

July 30, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.