HSBC Holdings plc Interim Results 2018

Financial performance

  • Reported revenue of $27.3bn was 4% higher, with growth in all of our global businesses. This was mainly driven by higher deposit margins and balance growth in RBWM, and GLCM growth within CMB, mainly in Hong Kong, as well as the favourable effects of currency translation. These increases were partly offset by lower revenue in Corporate Centre. Adjusted revenue of $27.5bn was 2% higher, excluding the effects of currency translation and movements in significant items.
  • Reported operating expenses of $17.5bn were 7% higher, primarily reflecting investments to grow the business, mainly in RBWM and GB&M, and continued investment in digital across all our global businesses. Adjusted operating expenses of $16.4bn were 8% higher, excluding the effects of currency translation and movements in significant items.
  • Reported profit before tax of $10.7bn was 5% higher, reflecting a net favourable movement in significant items and favourable currency translation. Adjusted profit before tax of $12.1bn was 2% lower, as revenue growth and lower expected credit losses were partly offset by higher operating expenses.
  • Lending growth in 1H18 was $43bn, increasing net loans and advances to customers by 5% since 1 January 2018.
  • Strong capital base with a common equity tier 1 (‘CET1’) ratio of 14.2% and a CRD IV leverage ratio of 5.4%.

John Flint, Group Chief Executive, said:

“We are taking firm steps to deliver the strategy we outlined in June. Today’s results, which are in line with our expectations, show strong revenue growth in our global businesses. This is creating room to invest while maintaining our commitment to full-year positive adjusted jaws. We are investing to win new customers, increase our market share, and lay the foundations for consistent growth in profits and returns.”

For further information contact:

Media Relations

Heidi Ashley
Tel: +44 (0)20 7992 2045

Patrick Humphris
Tel: +852 2822 2052

Robert Sherman
Tel: +1 212 525 6901

Investor Relations

United Kingdom
Richard O’Connor
Tel: +44 (0)20 7991 6590

Hong Kong
Hugh Pye
Tel: +852 2822 4908

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