UPDATE: HSBC H1 Pretax Profit Drops 12%

HSBC Holdings PLC

reported a decline in its first-half net profit. The bank's net profit for the period slipped to $9.46 billion, versus $10 billion, in the year-ago period. Its pretax profit fell 12% to $12.3 billion in the first half, compared to $14.1 billion. However, analysts were expecting a profit of $12.9 billion. Its underlying profit before tax declined 4% to $12.6 billion from $13 billion. Its earnings per share fell to $0.50 from $0.54. HSBC's investment banking unit profit also slipped 12% to $5.03 billion. Its underlying revenue dropped 4% to $31.36 billion from $32.7 billion, while operating expenses increased 2% to $18.2 billion. HSBC's second interim dividend was US$0.10. Stuart Gulliver, Group Chief Executive said, “These results demonstrate the resilience of our business model. Whilst regulatory uncertainty persists, our balance sheet remains strong and our continuing ability to generate capital supports both growth and our progressive dividend policy.” HSBC shares fell 0.26% to $52.74 in pre-market trading.