HSBC chief says UK growth needs strong banks after profits swell by 23%

EarningsCorporate Action

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HSBC's group chief executive Georges Elhedery said that UK growth requires strong banks after the lender reported a 23% rise in first-half pre-tax profit to 19.5 billion US dollars. The result exceeded analyst forecasts of 18.9 billion dollars and rounded off a bumper reporting season for the UK's high street banks, with Lloyds, Barclays, and NatWest also beating expectations. The Trades Union Congress renewed calls for a higher bank tax surcharge, arguing the combined 29 billion pounds in first-half profits from the four banks showed they could afford to pay more. Elhedery responded that the Government's growth ambitions need confident businesses with access to financing, which strong banks provide. HSBC also announced a new share buyback of up to one billion dollars and said profit growth was driven by higher net interest income and fee income, partly offset by increased expected credit losses including a 400 million dollar fraud-related exposure.