British banking giant HSBC saw its pre-tax profit fall to $3.61 billion in the three months to June, down 45 percent year-on-year, and short of analysts’ estimates.
In a statement the bank claimed that Retail Banking and Wealth Management had been affected by reduced client activity.
This led to lower revenue in the wealth businesses, albeit against last year’s strong second quarter which was boosted by the Shanghai-Hong Kong Stock Connect.
The Asian Contribution
Two-thirds of HSBC's adjusted profit before tax, or $7.2 billion, came from Asia in the first half of 2016, up from 62 percent in the same period last year.
The bank continued to develop the Asia businesses, particularly Asset Management and Insurance, and operations in the ASEAN region and the Pearl River Delta.
Revenue increased in all four areas compared with the same period last year and increased assets under management in Asia by 7 percent.
New Money
Global Private Banking attracted $5bn of net new money in the first half, more than half of which came through greater collaboration with other HSBC Global Businesses.
«While economic conditions remain difficult, we are making progress in all of the areas within our control. In the meantime, our balanced business model, strong liquidity and strict cost management make us highly resilient,» said Stuart Gulliver, Group CEO.
Cost Cuts
The bank claimed to be making progress in cutting costs. In the first half of 2016 it reduced the cost base compared with the first half of 2015, and say they are on track to hit the top end of their cost savings target range of $4.5 to 5 billion.
