HSBC pre-tax profits up 18% to $ 12,517 m in 1H, 2006

HSBC pre-tax profits increased by 18 percent to USD12,517 million from USD10,640 million in 2005 in the first half of 2006. Net operating income has grown by USD4.5 billion, or 14 per cent, to USD28.3 billion.

The cost:efficiency ratio has improved to 50.1 per cent from 51.4 per cent in the first half of 2005. Underlying growth, which exceeded USD1 billion, was approximately two and a half times the level of underlying growth in the first half of 2005.

Profit attributable to shareholders has risen by 15 per cent to USD8.7 billion, a new high and represents earnings per share of USD0.78, a rise of 13 per cent over the same period last year.

HSBC Group Chairman Stephen Green said: "These results reflect a very strong performance across geographies and lines of business around the Group. We have run the businesses with a strong capital structure and a robust balance sheet and we are well diversified."

HSBC's 'Managing for Growth' strategy is built on growing the business organically and much of the growth achieved during the period was achieved in that way, notably in CIBM (Corporate, Investment Banking and Markets), in PFS (Personal Financial Services) and in direct channels like HSBCdirect in the US.

The bank's core markets remain in Hong Kong, the United States and the UK. But three other businesses - Mexico, France and the Middle East, including Saudi Arabia - are now also generating pre-tax profits in excess of USD1 billion on an annualised basis, with Canada not far behind.