HSBC: adjusted profit down as operating expenses jump

(CercleFinance.com) - Profits at HSBC fell over the first six months of 2018, mainly due to higher operating expenses, prompting a slight drop in the shares today in London.


Adjusted pre-tax profit in the six months to the end of June fell by 2% to 12.1 billion dollars, which HSBC described as "in line with our expectations."

Reported revenue rose by 4% to 27.3 billion dollars, but excluding the effects of currency translation and movements in significant items, adjusted revenue was just 2% higher.

Meanwhile, operating expenses jumped by 7% to 17.5 billion dollars, with the group continuing to invest heavily in digital across its businesses.

The banking group maintained its dividend at 10 cents per share.

Last June new CEO John Flint announced eight strategic priorities for the bank between now and 2020, aiming for the bank to return to growth, creating value, mainly through growing revenue at a faster pace than expenses.

The HSBC share was down 0.6% at 711.4 pence in London after these interim results were published.

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