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HSBC's Private Bank Reports Stronger H1 Profit
Tom Burroughes
6 August 2018
today reported that private banking’s adjusted pre-tax profit for the half year to 30 June stood at $190 million, up from $144 million in the same period a year ago. In total, the UK/Hong Kong-listed group’s profit was $12.129 billion for the six-month period, down a touch from $12.364 billion. Total operating costs at the private bank were $743 million in the half-year, from $729 million a year before. The private bank accounted for 1.6 per cent of its parent bank's adjusted profit in the latest reporting period, up from 1.2 per cent. The lender is the latest UK-headquartered lender to have reported results, following Standard Chartered, Royal Bank of Scotland, Barclays and Lloyds Banking Group in recent days.
Private banking net operating income was $929 million, up from $874 million; its adjusted cost/income ratio was 80 per cent, tightening in from 83.4 per cent a year ago, it said today.
“Global private banking enjoyed a successful six months, growing adjusted revenue and attracting net new money through collaboration with our other global businesses,” John Flint, group chief executive, said.
The group reported a common equity tier 1 ratio, or CET1 ratio – a common measure of a bank’s capital buffer – of 14.2 per cent.