HSBC Net Profit Slips Against ‘Difficult’ Backdrop

HSBC Holdings PLC UK:HSBA +1.34% on Monday reported a fall in first-half net profit as it cited a difficult global economic backdrop. Profit in the six months to June 30 fell to $8.44 billion against $9.22 billion in the year-ago period.

Analysts polled by Dow Jones Newswires had forecast net profit of $8.3 billion. Net interest income fell to $19.38 billion from $20.24 billion in the year-ago period.

Net trading income also slipped, to $4.52 billion from $4.81 billion. The bank had a Core Tier 1 capital ratio of 11.3%, up from 10.1% at the end of 2011. Return on average ordinary shareholders’ equity was 10.5%, down from 12.3% in the year-ago period. The bank kept its dividend at $0.09 per share.

Douglas Flint, group chairman of HSBC, said regulatory and compliance events overshadowed financial performance for the group and apologized for “mistakes in the past.” He added that “economic activity over the next six months and beyond will be planned against a backdrop of unusually difficult conditions in which to assess risks and uncertainties.”

Marketwatch