HSBC Reports Q2 Financial Metrics, FX Fuels Revenue Growth
- HSBC saw pretax profits soar to $13.63 million during H1 2015, corresponding to a 10.2% growth YoY from $12.34 million in H1 2014.
HSBC has released its financial earnings for Q2 2015, which were highlighted by an uptick in profits to the tune of 10.2% during H1 2015, according to an HSBC statement.
In particular, HSBC saw pretax profits soar to $13.63 million during H1 2015, corresponding to a 10.2% growth YoY from $12.34 million in H1 2014. Moreover, $6.5 billion in Q2 2015, good for a 16.1% jump YoY from just $5.6 billion in Q2 2014.
In addition, HSBC reported earnings per share of $0.48 and dividends per ordinary share of $0.20 during Q2 2015, relative to $0.50 and $0.20 respectively, during Q2 2014. Revenues were another notable area of strength during Q2 2015 at HSBC, with adjusted revenue up 4% QoQ to $30.77 million, helped in large part by foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) – FX revenue surged during H1 2015, up 21% YoY from H1 2014.
Finally, adjusted operating expenses yielded a 7% rise QoQ to $17.64 million during Q2 2015, underpinned by regulatory programs and Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term costs. One of the main deterrents that helped stymie would-be profits at HSBC were the mounting legal fees and litigation costs. The lender disclosed that it had suffered nearly $1.1 billion in legal costs during H1 2015, exacerbated by settlements from FX fixing charges. Nevertheless, HSBC saw recorded revenues of $32.9 billion during Q2 2015.
According to Douglas Flint, Group Chairman, HSBC in a recent statement on the earnings, “We have had an encouraging start to 2015 with the interim results once again demonstrating the resilience and balance inherent within HSBC’s geographically diversified universal banking model. Particularly encouraging was the revenue growth from areas we have been investing in to offset the understandable decline in revenues from our run-off portfolios and divestments.”
Moreover, “We are continuing to invest to capture the opportunities which are arising from changing trade and investment flows and from the clear momentum in greater customer adoption of mobile and digital banking. In the continuing low interest rate environment, it is essential we build these incremental revenues and use technology and process improvement to generate further cost savings to offset the growing expenditure needed to embed regulatory changes and provide greater assurance over financial crime risks,” he added.
The bank had an eventful June as well, after it announced it was revamping its business operations in South America due to falling profitability. Consequently, HSBC moved to sell its operations in Brazil and Turkey, which portended a cut of approximately 25,000 jobs across both countries.
HSBC (NYSE:HSBC) shares were relatively muted on the earnings, having settled at $45.08 per share during pre-market trading Monday. Share prices have been in a general decline since early May 2015, having since surrendered the $50.00 handle en route to a recent low of $43.80.
HSBC has released its financial earnings for Q2 2015, which were highlighted by an uptick in profits to the tune of 10.2% during H1 2015, according to an HSBC statement.
In particular, HSBC saw pretax profits soar to $13.63 million during H1 2015, corresponding to a 10.2% growth YoY from $12.34 million in H1 2014. Moreover, $6.5 billion in Q2 2015, good for a 16.1% jump YoY from just $5.6 billion in Q2 2014.
In addition, HSBC reported earnings per share of $0.48 and dividends per ordinary share of $0.20 during Q2 2015, relative to $0.50 and $0.20 respectively, during Q2 2014. Revenues were another notable area of strength during Q2 2015 at HSBC, with adjusted revenue up 4% QoQ to $30.77 million, helped in large part by foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) – FX revenue surged during H1 2015, up 21% YoY from H1 2014.
Finally, adjusted operating expenses yielded a 7% rise QoQ to $17.64 million during Q2 2015, underpinned by regulatory programs and Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term costs. One of the main deterrents that helped stymie would-be profits at HSBC were the mounting legal fees and litigation costs. The lender disclosed that it had suffered nearly $1.1 billion in legal costs during H1 2015, exacerbated by settlements from FX fixing charges. Nevertheless, HSBC saw recorded revenues of $32.9 billion during Q2 2015.
According to Douglas Flint, Group Chairman, HSBC in a recent statement on the earnings, “We have had an encouraging start to 2015 with the interim results once again demonstrating the resilience and balance inherent within HSBC’s geographically diversified universal banking model. Particularly encouraging was the revenue growth from areas we have been investing in to offset the understandable decline in revenues from our run-off portfolios and divestments.”
Moreover, “We are continuing to invest to capture the opportunities which are arising from changing trade and investment flows and from the clear momentum in greater customer adoption of mobile and digital banking. In the continuing low interest rate environment, it is essential we build these incremental revenues and use technology and process improvement to generate further cost savings to offset the growing expenditure needed to embed regulatory changes and provide greater assurance over financial crime risks,” he added.
The bank had an eventful June as well, after it announced it was revamping its business operations in South America due to falling profitability. Consequently, HSBC moved to sell its operations in Brazil and Turkey, which portended a cut of approximately 25,000 jobs across both countries.
HSBC (NYSE:HSBC) shares were relatively muted on the earnings, having settled at $45.08 per share during pre-market trading Monday. Share prices have been in a general decline since early May 2015, having since surrendered the $50.00 handle en route to a recent low of $43.80.