HSBC profits in 2019

HSBC reported a pre-tax profit of approximately $21.6 billion for the first half of 2024, slightly down from $21.7 billion last year but exceeding analyst expectations. In his final earnings report before departing, CEO Noel Quinn announced a $3 billion share buyback and a 10-cent interim dividend, bringing total distributions to $13.7 billion for the period. The bank's operating expenses rose by 5% due to increased technology spending and inflation, contributing to a decrease in net interest margin from 1.7% to 1.62%. Quinn emphasized the effectiveness of HSBC's strategy, particularly its focus on growing wealth management and its core international businesses, despite challenges posed by rising competition and a lower interest rate environment. His successor, Georges Elhedery, will face the challenge of navigating increasing tensions between China and the West, which could impact HSBC's operations heavily concentrated in Asia. Overall, the bank is optimistic about maintaining strong returns with a new target of mid-teens return on average tangible equity for 2025.