HSBC Holdings plc 2014 Interim Results - highlights

  • Reported profit before tax (‘PBT’) down 12% in the first half of 2014 (‘1H14’) at US$12,340m compared with US$14,071m in the same period in 2013 (‘1H13’).
  • Underlying PBT was down US$457m or 4% in 1H14 at US$12,560m compared with US$13,017m in 1H13, primarily reflecting the reduced effect of significant items (US$807m net reduction in PBT between 1H13 and 1H14, comprising lower revenue items of US$1,282m partly offset by lower operating expense items of US$475m).
  • Earnings per share and dividends per ordinary share (in respect of the period) for the first half of 2014 were US$0.50 and US$0.20, respectively, compared with US$0.54 and US$0.20 for the equivalent period in 2013. The second interim dividend was US$0.10.
  • Return on average ordinary shareholders’ equity (annualised) was 1.3ppt lower at 10.7%, compared with 12.0% for the equivalent period in 2013.
  • Lower 1H14 revenue – 1H14 underlying revenue was US$31,359m, down US$1,361m or 4% from US$32,720m in the same period in 2013 mainly reflecting the reduced effect from significant items of US$1,282m. Excluding these items, revenue was broadly unchanged.
  • Higher 1H14 underlying operating expenses – 1H14 operating expenses were US$18,240m, 2% higher from US$17,959m in the same period in 2013. Excluding significant items, operating expenses increased by 4% in part reflecting increased investment in Risk, Compliance and Global Standards.
  • Capital – at 1H14, the CRD IV transitional basis CET1 capital ratio was 11.2%, up from 10.8% at 31 December 2013, and the end point CET1 capital ratio was 11.3%, up from 10.9%. This largely reflected capital generation and the benefit of higher fourth interim scrip take-up.

Stuart Gulliver, Group Chief Executive, said:
“These results demonstrate the resilience of our business model. Whilst regulatory uncertainty persists, our balance sheet remains strong and our continuing ability to generate capital supports both growth and our progressive dividend policy.”

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