4th Aug 2014 08:32
LONDON (Alliance News) - HSBC Holdings PLC Monday reported a decrease in first half pretax profit that was worse than analysts expected, with the banking group continuing its efforts to replace revenue from businesses it has sold or discontinued.
In a statement, HSBC said it made a USD12.34 billion pretax profit in the six months ended June 30, compared with GBP14.07 billion in the corresponding period last year.
A group of 15 analysts polled by the bank had forecast on average a USD12.46 billion pretax profit in the first half.
Chairman Douglas Flint said the result was achieved while the group continues to invest significant time and resources in re-shaping to meet the heightened and evolving expectations of its regulators.
"At a time of residual concerns over the sustainability of economic growth in many major markets and with heightened geopolitical tensions apparent, the board supported management's view that this was not the time to expand risk appetite to offset the effect of lower revenues arising from business disposals and legacy portfolio run-off," Flint said in a statement.
"These results illustrate the challenge of funding a considerable expansion of risk and compliance resources as well as the operational and structural changes needed to address new regulatory and public policy requirements at a time of limited revenue growth opportunities," Flint added.
HSBC shares were Monday quoted down 0.03% at 629.10 pence.
By Samuel Agini; [email protected]; @samuelagini
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