HSBC posts 50% hike in half-year pre-tax profits

The HSBC bank has reported a huge surge in pre-tax profits in its interim half-year results, posting a 53% hike to $9.3 billion - a rise of $3 billion on the same period last year.

Its US business, Household International, contributed $1.9 billion in the first half of the year compared with a contribution, from the date of acquisition, of $536 million in 2003.

In the six months up to June, the bank reported a rise in operating profits of 41% to $11.8 billion - on the back of a 35% rise in operating income, which topped $25 billion.

The increase reflected strong growth in fees and commissions across all customer groups as well as a strong performance within Global Markets, the group said.

Operating expenses, excluding goodwill amortisation, of $12 billion, were $2.8 billion, or 30%, higher than in the first half of 2003. The charge for bad and doubtful debts rose by $429 million to $2.8 billion in the first half of 2004 when compared with the same period in 2003.

Group chairman, Sir John Bond, said that it had been a "strong performance".

He said: "Our results reflect sound underlying revenue growth, a disciplined management of costs while investing for the future, and improved productivity. They are also a measure of the progress we are making in harnessing the strengths of our business across all geographical regions and all our customer groups."

The background to the HSBC performance was the improving economic conditions in many important markets compared with the first half of 2003, particularly in the US and Hong Kong – the UK economy was also "resilient".

Sir John said that the creation of 1,000 new customer-facing roles in the UK would "strengthen the service levels that we want HSBC to be known for".

The Group's total assets at June 30 2004 were $1.1 trillion, an increase of $120 billion, or 12%, since December 31 2003.

(gmcg)