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HSBC profits up 5% in first half of 2017


The bank also said it would add a further $2 billion to its existing share buyback program, taking it to $5.5 billion since the second half of 2016. It completed a previously announced $1 billion buyback in April.

The lender reported pre-tax profits of US$10.2 billion compared to US$9.7 billion for the same period in 2016.

He said the bank's strong capital generation means it is likely to keep its annual dividend at $0.51 per share and every six months look at whether it has more capital than it needs to increase lending profitably and meet regulatory needs.

Stuart Gulliver, chief executive of the HSBC Group, described the results as "excellent". He has spent most of his tenure attempting to improve profitability by shrinking HSBC's vast global network, exiting nearly 100 businesses and 18 countries.

Banks analyst Robert James, who works for Old Mutual Global Investors, said that the key to the investment case for HSBC shares is the $400bn (£304bn) surplus of deposits over liabilities held by the company.


The share buybacks and sustainable dividends show that HSBC has advanced further in its turnaround in comparison to other rivals based in Britain including Standard Chartered and Barclays, which during restructuring suspended payouts.

Since the financial crisis in 2008 Europe's largest bank has cutting jobs and selling assets to streamline the business and reduce costs to make the group more profitable, while still making dividend payments to shareholders. New capital regulations have also depressed shareholder payouts as banks stockpile cash to swell their loss-absorbing buffers.

"We expect a buyback of $2.5 billion to be announced for 2H17 - a lower figure would be seen as a disappointment we think", Deutsche Bank analysts wrote in a note. In January, Gulliver said: "We will move in about two years time when Brexit becomes effective".

HSBC has reported a rise in half-year profit and announced a two billion United States dollar (£1.5 billion) share buy-back.

HSBC announced in a statement this morning that its reported profit before tax had jumped five percent to $10.2 billion in the first half of the year. Former AIA Group chief executive Tucker, HSBC's first ever externally appointed chairman, is set to take up the role on 1 October.

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