2019-08-27 08:31Financial Performance - The reported profit before tax for the first half of 2019 increased by 15.8% to $12.4 billion compared to the second half of 2018[12]. - The adjusted profit before tax for the first half of 2019 rose by 6.8% to $6.1 billion, reflecting strong growth in retail banking and wealth management[12]. - Revenue for the first half of 2019 increased by 7.6%, with adjusted revenue growth at 8%[12]. - The adjusted profit before tax for the first half of 2019 was 12.516 billion, compared to 11.723 billion in the same period of 2018, representing a year-over-year increase of 6.8%[15]. - Revenue for the first half of 2019 reached $28,232 million, an increase from $26,880 million in the same period of 2018, representing a growth of 5%[30]. - Operating profit for the first half of 2019 was $11,083 million, up from $9,331 million in the first half of 2018, reflecting a growth of 18%[30]. - Net profit after tax for the first half of 2019 was $9,937 million, compared to $8,416 million in the same period of 2018, indicating an increase of 18%[30]. - The company reported a pre-tax profit of $12,407 million for the first half of 2019, up from $10,712 million in the first half of 2018, marking a growth of 16%[30]. - The company reported a net income of $6,200 million for the first half of 2019, reflecting a significant increase from the previous year[34]. - The effective tax rate for 2019 was reported at 19.9%, compared to 21.4% in 2018[34]. Customer Engagement and Satisfaction - Customer satisfaction in retail banking and wealth management improved significantly during the first half of 2019[11]. - HSBC's customer accounts reached 238,000, with a significant increase in digital banking usage, highlighting a shift towards online services[14]. - The company reported a 27% increase in customer deposits year-over-year, indicating strong growth in its banking operations[57]. - The company is committed to enhancing customer-centric services, achieving an 84% customer satisfaction rate[24]. - The number of active users for PayMe increased significantly, contributing to the growth in digital banking services[55]. - User data showed a significant increase in customer engagement, contributing to overall revenue growth[36]. - Customer accounts rose by $17 billion, marking a 1% increase, with a customer loan to customer account ratio rising from 72% to 74%[142]. Investment and Technology - Investment in new technologies reached $2.2 billion in the first half of 2019, a 17% increase from the same period in 2018[11]. - The company is prioritizing cost control and investment management to enhance operational efficiency and profitability[13]. - HSBC's strategy includes leveraging technology to improve customer experience and streamline operations, aiming for a competitive edge in the global banking sector[22]. - The company plans to invest in new technologies and product development to enhance its service offerings[74]. - The company is focusing on enhancing its digital banking services to improve customer engagement and retention[30]. - The company is investing in new technologies to enhance customer experience and operational efficiency[55]. Market Expansion and Growth Strategy - The company aims to expand its operations in high-growth markets, focusing on Asia and Latin America for future growth opportunities[23]. - The company plans to allocate $100 billion for sustainable financing and investment by the end of 2025[5]. - The company is actively pursuing strategies for market expansion and potential acquisitions[25]. - The company plans to expand its market presence and invest in new product development to drive future growth[30]. - The company aims to enhance the performance of low-return businesses, targeting a 6% return on equity by 2020[24]. - The company is focused on expanding its market presence globally, with a commitment to sustainable practices and responsible growth strategies[76]. Financial Stability and Capital Management - The common equity tier 1 ratio improved to 14.3% as of June 30, 2019, compared to 12.3% at the end of 2018[12]. - The company's capital ratio stood at 14.3% as of June 30, 2019, slightly up from 14.2% a year prior, indicating stable capital management[15]. - The company's capital strength and liquidity remain robust, with a reported capital adequacy ratio of 8%[24]. - The total equity attributable to shareholders increased to 145.441 billion as of June 30, 2019, from 139.754 billion a year earlier, reflecting a growth of approximately 4.8%[16]. - The company's capital strength ratio was 14.3% as of June 30, 2019, compared to 14% at the end of 2018[44]. - The company reported a total asset value of 2.751 trillion as of June 30, 2019, up from 2.607 trillion a year earlier, reflecting a growth of approximately 5.5%[16]. Operational Efficiency - The company is focusing on cost control and operational efficiency to enhance profitability[13]. - The company experienced a decrease in operating expenses, which were $16,163 million in 2019, down from $15,615 million in 2018[33]. - The adjusted cost-to-income ratio improved to 62.5% in the first half of 2019 from 64.4% in the same period of 2018, indicating better operational efficiency[154]. - The company has implemented cost-reduction strategies that are expected to save approximately $50 million annually, improving overall profitability[88]. - The company is focusing on enhancing its digital banking services to improve customer engagement and retention[30]. Risk Management - The expected credit loss for the first half of 2019 was $11 million, compared to $7 million in the same period of 2018, showing an increase of 57%[30]. - The expected credit loss provision was $(1,140) million, compared to $(407) million in the same period last year, indicating an increase in credit risk provisions[99]. - The company anticipates continued growth in user data and market expansion strategies for 2019[39]. - The company is actively managing risks associated with its operations to ensure long-term sustainability and growth[81]. Sustainability and Corporate Responsibility - The company is focused on sustainable practices, with a commitment to improve its sustainability rating as per Sustainalytics[26]. - The management emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by 40% by 2025[87]. - The company has set a goal to improve its ESG (Environmental, Social, and Governance) ratings, with a focus on responsible resource management[75]. - The company is committed to responsible corporate culture and aims to enhance the benefits of its products while ensuring sustainable practices[77].