Higher rates fuels strong net income, revenue growth at HSBC: HSBC Holding Plc’s net profit surged 102% y-o-y to USD 18.1 bn in 1H 2023 on the back of rising central bank rates around the world, according to the London-based lender’s earnings release (pdf). Revenues, meanwhile, rose 50% to USD 36.9 bn during the period. The lender attributed the figures to rising interest rates worldwide — which drove up net interest income across all of its global businesses — in addition to tight cost control. Net interest income rose 36.5% y-o-y to USD 18.3 bn in the first half of 2023.

Wealth + commercial banking underpinned revenue growth: The wealth and personal banking segment was the largest contributor to pre-tax profits, bringing in USD 8.6 bn during the six-month period and rising 40% y-o-y. Commercial banking contributed USD 7.9 bn to the group’s pre-tax income, up 37% y-o-y.

CLOSER TO HOME- HSBC Bank Middle East turned in a strong performance as it continued to dominate the regional equity- and debt-capital-markets league tables in the first half. The unit reported profit before tax in the first half of USD 673 mn (+78%) on net operating income of USD 1.2 bn (+50%). Its wealth and personal banking unit saw net operating income up 93%, commercial banking grew 57%, and global banking and markets was up 22%.

Looking ahead: HSBC Plc has upped its full-year guidance for net interest income from USD 34 bn to more than USD 35 bn due to the current market consensus about global central bank rates, the bank said. HSBC’s board approved an interim dividend of USD 0.10 per share, which will be paid out in September. It also approved a share buyback of up to USD 2 bn which it expects to complete within three months.

REAX- The market cheered the results as HSBC’s shares in London rose 2.7%. The bank’s stock is up 68% over two years, Reuters notes, while rival Barclays is down 14% in the same period.

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