2023-08-01 04:00Financial Performance - The company reported a profit of $17,508 million for the current period, contributing to a total comprehensive income of $16,528 million[3]. - The profit before tax for the six months ended June 30, 2023, was $21,657 million, a significant increase from $8,780 million in the same period of 2022, representing a growth of approximately 146%[11]. - The net profit after tax for the six months ended June 30, 2023, was $18,071 million, compared to $8,931 million in the same period of 2022, representing an increase of 102%[36]. - The total comprehensive income for the period was $17,032 million, compared to a loss of $(3,598) million in the previous year[97]. - The company reported a significant loss from the sale of subsidiaries and joint ventures amounting to $(3,604) million, compared to a loss of $(71) million in the prior year[11]. - The company recognized a temporary gain of $1.5 billion related to the acquisition of UK Silicon Valley Bank[95]. - The company reversed an impairment loss of $2.1 billion associated with the planned sale of its French retail banking business, which is no longer classified as held for sale[95]. Assets and Liabilities - Total assets increased to $3,041,476 million as of June 30, 2023, up from $2,949,286 million at December 31, 2022, representing a growth of approximately 3.1%[1]. - Total liabilities reached $2,849,825 million, reflecting an increase of 3.1% from $2,764,089 million at the end of 2022[1]. - The total equity attributable to shareholders at the end of the period was $184,170 million, up from $178,975 million year-over-year[73]. - The total risk-weighted assets were $859,545 million, slightly up from $851,743 million, indicating a stable capital position[73]. - The company’s cash and balances with central banks decreased to $307,733 million from $327,002 million, a decline of about 5.1%[1]. Revenue and Income - Total revenue for the six months ended June 30, 2023, was $36,876 million, up from $24,545 million in the same period of 2022, reflecting a 50% increase[36]. - Net interest income for the first half of 2023 was $18,264 million, up from $12,846 million in the first half of 2022, representing a significant increase of 42%[77]. - The bank's total revenue for the first half of 2023 was $30 billion, reflecting a 15% year-over-year growth driven by higher interest rates and increased customer activity[67]. Dividends and Shareholder Returns - The company declared dividends amounting to $4.497 million to shareholders during the period[6]. - The total dividend for the year is $0.33 per share, amounting to $6.591 billion, compared to $0.18 per share and $3.576 billion in the previous year[22]. - The board approved a second interim dividend of $0.10 per share and plans to initiate a share buyback of up to $2 billion[82]. - The company paid $7,508 million in dividends to shareholders, which is an increase from $4,497 million in the previous year, indicating a rise of approximately 67%[11]. Regulatory and Compliance - The company has implemented IFRS 17 "Insurance Contracts" starting January 1, 2023, replacing IFRS 4, which may impact future financial reporting[1]. - The company has confirmed that there are no significant impacts from new standards or amendments on its financial statements[17]. - HSBC has complied with applicable provisions of the UK Corporate Governance Code as of June 30, 2023[58]. Legal Matters - HSBC is involved in various legal proceedings and regulatory matters across multiple jurisdictions, but considers none to be significant at this time[39]. - HSBC has faced multiple lawsuits since November 2014, with plaintiffs alleging the bank assisted sanctioned parties in illegal activities, with significant potential impacts still pending resolution[43]. - HSBC's management has indicated that predicting the resolution of ongoing legal matters is not feasible, but the potential impacts could be significant[43][45]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance customer experience and operational efficiency[2]. - HSBC is exploring strategic acquisitions in Asia to strengthen its market position and expand its customer base[67]. - The company is investing $3 billion in technology and innovation over the next three years to enhance its service offerings and operational capabilities[67]. Operational Efficiency - The bank's cost-to-income ratio improved to 52%, down from 55% in the previous year, showcasing enhanced operational efficiency[67]. - The company’s operating liabilities increased significantly by $72,836 million, compared to a decrease of $(35,752) million in the previous year, indicating a substantial shift in financial position[11]. - The company’s technology spending increased by 12.8% in the first half of 2023, now accounting for nearly one-quarter of total operating expenses[71].