News Worms
News Worms


HSBC announces £1.5bn share buy-back amid half-year profits rise

HSBC announces £1.5bn share buy-back amid half-year profits rise

HSBC was widely expected to announce that it will buy back its own shares at between $1.5 billion to $4 billion in the second half of 2017, market watchers said.

Reported pre-tax profit for the six months to June rose five percent to $10.2 billion compared with $9.7 billion for the same period previous year.

Mr Gulliver has overseen stringent job cuts and asset sales as part of efforts to boost profits, and on Monday said the bank is on track to achieve around six billion U.S. dollars cost savings by the end of the year.

HSBC has previously said it could relocate up to 1,000 staff to Paris to conduct European Union business it may not be allowed to do from London in the event of a "hard Brexit". The revamp he and Chairman Douglas Flint started in 2011 involved exiting dozens of businesses and swaths of the world, and marked a U-turn for HSBC after a stint of unbridled growth.

The payday for shareholders comes after a $1 billion shares buyback in February and $2.5 billion a year ago as part of the global bank's drive to prune its sprawling empire and to improve its share price.

HSBC is the largest bank in Europe and presents an opportunity for investors to diversify away from banks that are more heavily weighted in North American markets.

"We see this as a solid set of results, but would expect a somewhat muted share price reaction: the strong recent performance of the shares suggests to us that today's solid print is likely already reflected in the price", Goldman said.

Since the 2008 credit crunch HSBC has cut thousands of roles and sold assets to ensure it can keep paying dividends and remain profitable.

HSBC is one of a number of banks considering relocating jobs to the continent after the Brexit vote, having said that 1,000 jobs may have to move from London to Paris over the next two years depending on the outcome of negotiations. The stock buyback plan for 2017 shall raise the amount of total stock it has pledged to buy over the past year to $5.5bn.

For example, the Bank of England has estimated a single basis-point increase that might result from splitting the clearing of interest-rate swaps could cost firms across the euro zone €22 billion a year, according to a June 27 report. Mr. Flint is leaving in September and will be replaced by Mark Tucker, former CEO of AIA Group Ltd. Mr. Gulliver has said he would leave next year after a new CEO is named.

follow

editors' picks

August 01, 2017
Another attractive Sunday with sunshine and comfortable heat
Humidity is slowly creeping back into the state as temperatures return to the upper 80s on Wednesday . At this point we're looking dry during Wednesday afternoon , but the humidity will creep up a bit.

August 01, 2017
Blast at Afghan mosque kills 20, wounds 30
No one has claimed responsibility for the explosion yet, which comes a day after the Iraqi embassy in Kabul was targeted by ISIL. Residents were furious the police did not prevent the second explosion, although it is still not clear what caused it.

August 01, 2017
Haley: No Point in Having UNSC Session if to Produce Nothing
The time for talk is over. "(South Korea's) alliance's standpoint on North Korea and other things including how to impose heavy sanctions".

August 01, 2017
U.S. expresses 'strong disappointment and protest' over Russian Federation retaliation
But a State Department official called Russia's action "a regrettable and uncalled-for act". Initially, Trump resisted the sanctions legislation.

August 01, 2017
Remain Tories deliberately creating uncertainty to derail Brexit says UKIP
His comments to French newspaper Le Monde appear to rule out Britain slashing corporate tax to attract global businesses. This means that the transitional period - however long it is - until a post-Brexit deal is agreed could be a hard time.

August 01, 2017
Ram temple construction very much on BJP agenda: Amit Shah
To a query on the Bofors scam, Mr Shah said, "The probe is already on" and he can not comment on it further. Among the ministers not present in the House were Ravi Shankar Prasad , Piyush Goyal and Dharmendra Pradhan.

July 31, 2017
Formula One Hungarian Grand Prix result
After his accident towards the end of the session, Palmer finished 16th, 1.461s off his Renault teammate Hulkenberg . Nothing separates Mercedes , Ferrari and Red Bull in their qualifying simulations.

July 31, 2017
Mohamed Salah is 'flying' at Liverpool, claims Georginio Wijnaldum
Liverpool star midfielder Emre Can has been included in Jurgen Klopp's starting XI which will take on Hertha Berlin today. So at the moment, it's good that everyone looks really positive.

July 31, 2017
Russian Federation orders U.S. to cut diplomats in response to sanctions
Nevertheless, signing a bill that penalises Russia's election interference marks a significant shift for Mr Trump. Russian Federation denies it interfered in the election and Trump has said there was no collusion.

July 31, 2017
Record setting day for Caeleb Dressel at world championships
Home-crowd favourite Katinka Hosszu can win her second individual medley title of these championships in the women's 400m final. Schooling had admitted after the race that Reese had warned him that this would happen if he took time off from the pool.