HSBC on Monday reported a fall in first-half profits but pledged to resume quarterly dividends next year as its annual outlook remained positive.
The firm posted a pre-tax profit of $9.17bn, down more than 15%.
Chief executive Noel Quinn said “it reflected a more normalised level of expected credit losses compared with the Covid-19 releases made last year, as well as the macroeconomic impact of the Russia-Ukraine war”.
HSBC raised its near-term return on tangible equity target to at least 12% from 2023 onwards from an earlier forecast 10% minimum.
Annual net interest income was expected to reach at least $31bn this year and $37bn next year as global interest rates rise.
The bank was among a number of major banks to cancel shareholder payouts during the pandemic, which angered some Hong Kong shareholders.
The plan to resume payout came before HSBC executives’ first face-to-face meeting with shareholders Tuesday from the Asian financial hub in three years.
The executives are expected to field questions about a restructuring bid from its biggest shareholder Ping An Insurance Group.
The lender is under pressure from Ping An, which has a 9.2% stake, to spin off its Asian operations, in a bid to unlock shareholder value amid tensions between China and the west.
Reporting by Frank Prenesti at Sharecast.com
