HSBC Bank announced its decrease in 26 percent before tax deduction, during the first half of the year, to reach 15.8 billion dollars, which is less than the expectations of analysts of $ 16.5 billion.
This announcement led to the decrease in Hong Kong bank shares in Hong Kong by more than 3 percent, during the afternoon trading.
The bank’s results were greatly affected by its increasing losses in China, as it was subjected to a second strike of $ 2.1 billion from its share in the Chinese Telecom Bank, after a previous loss of $ 3 billion in February 2024.
These losses come due to the increase in troubled loans in China, and expected credit losses increased by $ 900 million, to reach $ 1.9 billion, partly due to the bank’s exposure to the Hong Kong commercial real estate sector.
Destious expectations and fears of Trump’s commercial policies
The bank warned that the customs duties, which may be imposed by US President Donald Trump, could affect its future goals of profitability, especially in the event of a deterioration of the economy and the reduction of central banks in interest rates.
On the other hand, the banking services sector for companies and institutions, the largest source of revenue for the bank, was the only sector that recorded a growth in profits, an increase of 4 percent to reach 6.4 billion dollars.
The bank announced a new program to purchase the shares of up to 3 billion dollars, in addition to a previous program at the same value. The bank will soon appoint a new chairman for the Board of Directors after Mark Taker announced his resignation last May.
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