Profit from Hong Kong and Shanghai Banking Corp Ltd’s (HSBC) Indian operations increased 4% year on year led by a 7 per cent growth in both its global banking and markets division and commercial banking business.
Profit before tax from India increased to $798 million in the first six months till June 2024 from $766 million a year ago, led by a 7% growth in its global banking and markets (GBM) division which services large corporations and includes treasury operations. Profit from the GBM business increased to $436 million from $408 million a year ago.
Commercial banking division, which serves small and medium enterprises (SMEs) remained the second largest profit division for bank also reporting a 7% increase in profit before tax to $224 million from $209 million a year ago.
India remained the fourth largest profit centre for the bank globally behind Hong Kong ($6.21 billion), UK ($4.10 billion) and mainland China ($1.91 billion). Profit from the bank’s Canadian operations were higher at $4.71 billion, including a one off gain from the sale of its business in that country.
In India the bank’s corporate centre division, which provides support services to the bank globally was the only one which reported a fall in profit by 20% to $91 million from $114 million a year ago.
Profit from personal banking and wealth management, the smallest business in terms of revenue in India also increased 34% to $47 million from $35 million in the six months ended June 2024.
Total loan book from India increased 17% to $21.5 billion from $18.38 billion at the end of December 2023. Wholesale loans to companies increased 19% to $18.90 billion as of June 2024 from $16.17 billion at the end of December 2023. Personal loans to individuals increased 18% to $2.60 billion from $2.21 billion a year ago. Provisions remained little changed at $53 million for wholesale loans from $51 million a year ago and unchanged at $20 million for personal loans.
Globally the bank made a $21.6 billion pre tax profit for the first six months of the year higher than expectations of $20.5 billion. average of broker estimates compiled by HSBC. CEO Noel Quinn announced a $3 billion share buyback in his last results before retirement in September as the bank upgraded its income outlook.
