HSBC Holdings (0005) announced its results for the first half of 2021, and its benchmark pre-tax profit rose 151% year-on-year to 10.839 billion yuan (US$. The same below), which was better than the market's expected median of 3.673 billion yuan.
As for the dividend, the board of directors announced the payment of an interim dividend for the first half of 2021, which will be 0.07 yuan per ordinary share (approximately 0.546 Hong Kong dollars), which will be paid in cash and there is no option for scrip dividend.
Net interest margin fell by 22 basis points
In the first half of the year, HSBC’s accounting base income was 25.551 billion yuan, a year-on-year decrease of 4.46%.
The group said that it mainly reflects the decline in interest rates in 2020 and the decrease in income from capital markets and securities services under the global banking and capital markets business.
The net interest margin for the first half of 2021 was 1.21%, a decrease of 22 basis points from the first half of 2020.
ECL records $700 million in net reversal
Excluding one-off factors such as currency translation differences and major items, adjusted profit before tax in the first half of the year rose 111.4% year-on-year to 11.95 billion yuan; net profit also rose 268% year-on-year to 7.276 billion yuan.
In terms of impairment, HSBC’s accounting benchmark expected credit loss (ECL) recorded a net reversal of 700 million yuan, compared with 6.9 billion in the first half of 2020.
During the period, HSBC's average return on tangible equity (annual rate) was 9.4%, an increase of 5.6 percentage points from the first half of 2020.
In addition, the common equity Tier 1 capital ratio was 15.6%, a decrease of 0.3 percentage points from December 31, 2020, reflecting the increase in risk-weighted assets due to loan growth and the decrease in common equity Tier 1 capital.
HSBC keeps the market up by more than 3% in half a day, Hong Kong stocks rise 237 points repeatedly, ATM stocks are mixed | Continue to update HSBC's performance forecast | constant
