HSBC shows profits

(CNS): Following the release Monday of HSBC’s 2009 interim results, HSBC Group’s CEO, Michael Geoghegan said in a release that these results show that the Bank, despite the tough economic environment, continues to deliver profit, remains financially strong and well-positioned for the future. Pre-tax profit was US$7.5 billion, broadly in line with the first half of 2008 and on a reported basis; pre-tax profit was US$5 billion, significantly better than the second half of 2008.
In addition, Geoghegan noted, “In terms of profitability, HSBC is ahead of where we projected at the beginning of the year. We continue to generate capital and give a good return to our shareholders. We are paying US$2.8bn in dividends during the first half of 2009 while many of our competitors paid nothing.”

The release notes key highlights from the Interim results report: Financial Strength: Profitable, generating capital and delivering strong revenues 10% higher than early 2008; Clear strategy: Combine emerging market leadership with a global network that offers the advantage of international connectivity and scale; Global Banking and Markets: record pre-tax profit for first half of 2009; Commercial banking solidly profitable despite weaker economic conditions; Taking a long-term view of Personal Financial Services: Business remained profitable outside North America; Strong grip on costs and efficiency: Cut costs 3 per cent on an underlying basis; Further enhanced our brand. HSBC was ranked world’s No. 1 brand and named Euromoney’s Global Bank of the Year.

According to HSBC Cayman CEO, Gonzalo Jalles, “HSBC’s global strength positions us well for the future as we continue to explore new ways to expand in the local market. People around the globe are concerned about the current state of the economy and how it is affecting the financial sector. These recent results from HSBC Group allow us to continue to confidently promote HSBC’s global strength as a significant reason to bank on island with HSBC Cayman. “In addition,” Jalles adds, “HSBC Cayman’s business model and strategy are directly in line with the Bank’s corporate strategy that has produced solid results.

For example, HSBC Group’s strategy when entering new markets is to remain conservative and invest in new opportunities only where and when it makes sense. Our deliberate phased approach to entering and growing in the Cayman market is a reflection of that corporate strategy. We have taken the time to carefully evaluate the opportunities on island so that as we continue to expand our products and services, HSBC Cayman can ensure that our offerings are viable, solid, and in line with consumers’ expectations for how they believe the Cayman banking industry should evolve to accommodate the financial needs for a society with increasingly dynamic lifestyles.”

Echoing HSBC Group’s Chairman, Stephen Green, Jalles pointed out, “The industry’s push towards more innovative banking products and methods that provide customers with more globalized banking access is especially necessary given recent regulatory trends and industry changes.”

Despite HSBC’s positive mid-year results, Green asserts that the general economic outlook for the future remains uncertain. However, he is also confident in the Bank’s ability to generate sustainable long-term growth and to contribute to a balanced economic development. “The same is true for Cayman,” confirms Jalles. “At HSBC Cayman, we are confident that HSBC’s global success and network provides us the strength necessary to effectively grow our brand and services on the island. We have and will continue to distinguish ourselves with increased unique offerings found nowhere else in Cayman—a distinct bank for the 21st century.”