The bank’s reported pre-tax profit more than doubled from a year ago to $10.84 billion in the January-to-June period this year. Analysts’ estimates compiled by the bank had pointed to a $9.45 billion in reported pre-tax profit during that period.
Meanwhile, revenue fell 4.5% from a year ago to $25.55 billion in the first six months of 2021 — broadly in line with the $25.52 billion that analysts had projected.
HSBC shares in Hong Kong jumped more than 3% following earnings release.
HSBC’s Group Chief Executive Noel Quinn said a brighter economic outlook has allowed the bank to start releasing provisions that were set aside for potential loan losses. That was the “main driver” of the bank’s improved profitability.