HSBC revenue expectations beat in its 2021 first-half earnings and announced its second dividend payout since the Covid-19 pandemic as the global economy bounces back. Revenue fell 4.5% from a year ago to $25.55 billion in the first six months of 2021 broadly in line with the $25.52 billion that analysts had projected.
The bank reported pre-tax profit more than doubled from a year ago to $10.84 billion in the January-to-June period this year. Analysts’ estimates compiled by the bank had pointed to a $9.45 billion in reported pre-tax profit during that period. HSBC shares in Hong Kong jumped more than 3% following the earnings release.
The bank, based in London, said it had earnings of 85 cents per share.The bank released a net $719 million in reported expected credit loss. Net interest margin, a measure of lending profitability, was 1.21% in the first half of 2021.That is 22 basis points lower than the same period last year. The bank said it targets a dividend payout ratio of 40% to 55% of reported earnings per ordinary share for 2021.
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