HSBC Group CEO commends Sri Lanka staff amidst economic, political crisis

Wednesday, 3 August 2022 00:00 - - {{hitsCtrl.values.hits}}

HSBC Group CEO Noel Quinn

HSBC CEO Noel Quinn has commended Sri Lanka staff for supporting customers amidst the current economic and political crisis.

The commendation by Quinn was contained in his review accompanying HSBC’s interim results for the first half of 2022.

Quinn singled out colleagues in Sri Lanka, Hong Kong, mainland China and Poland and Eastern Europe.

“Everything we have achieved over the last six months – and everything we want to achieve over the next six months and beyond – rests on the hard work, commitment and tireless efforts of my colleagues around the world,” Quinn said.

“I am especially grateful to my colleagues for managing considerable uncertainty and disruption in the first half of the year, particularly those in Hong Kong and mainland China, who have managed the impact of COVID-19 restrictions on our customers and communities; in Sri Lanka, who have continued to deliver for our customers during the current economic and political crisis; and in Poland and eastern Europe, who have been volunteering to help those directly impacted by the Russia-Ukraine war,” HSBC CEO said.

“I am grateful too for the support that my colleagues have offered to customers impacted by the ongoing cost of living crisis gripping many of the world’s major economies. These are testing times for many of those who bank with us and we are committed to helping support them through this difficult period. My colleagues represent the very best of HSBC, and I am proud of all they have done – and are doing – to support our customers, communities and each other,” added Quinn who was appointed Group CEO in March 2020.

In 1H, HSBC's reported profit after tax increased by $ 0.8 billion to $ 9.2 billion. This included a $ 1.8 billion gain on the recognition of a deferred tax asset from historical losses, as a result of improved profit forecasts for the UK tax group, which has accelerated the expected utilisation of these losses. Reported profit before tax decreased by $ 1.7 billion to $ 9.2 billion, reflecting a net charge for expected credit losses and other credit impairment charges (ECL), compared with a net release in 1H 21. Adjusted profit before tax fell by $ 0.9 billion to $ 10.7 billion.

Reported revenue decreased marginally to $ 25.2 billion, primarily due to foreign currency translation impacts and 1H 22 losses on planned business disposals. Adjusted revenue increased by 4% to $ 25.7 billion, driven by higher net interest income, reflecting interest rate rises and balance sheet growth, and strong growth in revenue from Global Foreign Exchange in Global Banking and Markets (GBM). This was partly offset by unfavourable market impacts in insurance manufacturing in Wealth and Personal Banking (WPB).

“Our first-half performance reflects the continued impact of our strategy, with gathering revenue momentum and tight cost control. The progress that we’ve made growing and transforming HSBC means we are in a strong position as we enter the current rates cycle. We are confident of achieving a return on tangible equity of at least 12% from 2023 onwards, which would represent our best returns in a decade," Quinn added.