Interim Results 2018

Our Interim Report 2018 and other key financial documents are available to download.

At a glance

Our international network, access to high-growth markets, and balance sheet strength deliver long-term value for customers and shareholders.

Our operating model consists of four global businesses and a Corporate Centre, supported by HSBC Operations Services and Technology, and 11 global functions.

For the half-year ended 30 June 2018

Fact: Reported profit before tax is 10.7 billion US dollars. Reported profit before tax in the first half of 2017 is 10.2 billion US dollars.
Fact: Adjusted profit before tax is 12.1 billion US dollars. Adjusted profit before tax in the first half of 2017 is 12.4 billion US dollars.
Fact: Reported revenue is 27.3 billion US dollars. Reported revenue in the first half of 2017 is 26.2 billion US dollars.

At 30 June 2018

Fact: Reported risk-weighted assets in 2018 is 865 billion US dollars. Reported risk-weighted assets as of 31 December 2017 is 871 billion US dollars.
Fact: Common equity tier 1 ratio in 2018 is 14.2 per cent. Common equity tier 1 ratio as of 31 December 2017 is 14.5 per cent.
Fact: Total assets in 2018 is 2,607 billion US dollars. Total assets as of 31 December 2017 is 2,522 billion US dollars

Key highlights

  • Moving forward with the next phase of our strategy, which was outlined in June
  • Good momentum across our four global businesses, which saw their adjusted revenue rise 7 per cent in the first half, compared with 1H17
  • Reported profit before tax was up 5% compared with 1H17; adjusted profit before tax was down by 2%, due to increased investment in the business
  • Adjusted operating expenses of US$16.4bn were US$1.2bn or 8% higher than 1H17, reflecting continued investments to grow the business and enhance our digital capabilities
  • Strong common equity tier one ratio of 14.2%, which included the impact of foreign currency movements and the US$2 billion dollar share buy-back we announced in May

Group Chairman’s Statement

“The strength of our global businesses underlines the potential of the Group to make further revenue and market share gains, and provides room to invest in revenue growth, resilience, and technology to support our customers.”

Mark E Tucker, HSBC Group Chairman
6 August 2018

 

Investing in technology

Investing in the future of the business is a key pillar of the bank’s strategy… Technological change, in particular, will only accelerate in the coming years. Being able to invest thoughtfully and at scale at this point in the cycle will differentiate future winners from the rest of the industry.

Group Chief Executive’s Review

“We are investing to win new customers, increase our market share, and lay the foundations for consistent growth in profits and returns.”

John M Flint, HSBC Group Chief Executive
6 August 2018

 

The strength of our network

HSBC is a strong business with a number of clear commercial advantages. In particular, we are a leading international bank with a network that gives us unparalleled access to high-growth markets, particularly in Asia and the Middle East.

Financial targets

Delivering against Group financial targets

Return on tangible equity (% annualised)

Our target is to achieve a reported return on tangible equity (RoTE) of more than 11% by the end of 2020 – broadly equivalent to a return on equity (RoE) of 10%. Throughout the period from 2018 to 2020, our plan assumes our common equity tier one (CET1) ratio will be above 14%.

In the first half of 2018, we achieved a RoTE of 9.7%, compared with 9.9% in the first half of 2017.

Adjusted jaws

Our target is to maintain positive adjusted jaws on an annual basis.

Positive jaws occurs when the figure for the percentage change in revenue is higher than, or less negative than, the corresponding rate for operating expenses.

Total dividends declared in respect of the half-year (US$m)

We plan to sustain the annual dividend in respect of the year at its current level for the foreseeable future. Growing our dividend in the future will depend on the overall profitability of the Group, delivering further release of less efficiently deployed capital and meeting regulatory capital requirements in a timely manner.

Video


John Flint, Group Chief Executive, HSBC, discusses the bank’s Interim Results, its international network and value to customers.

Main photograph: Hong Kong by night by Dickson Chan, HSBC Hong Kong