British banking group HSBC has reported pre-tax profit of $9.71bn for the first half of 2016, a slump of 28.7% compared to $13.63bn a year ago.
Adjusted pretax profit for the half ended 30 June 2016 was $10.79bn, a decrease of 14% from $12.55bn in the first half of 2015.
Revenue slid 10.5% year-on-year to $29.47bn from $32.94bn, while adjusted revenue declined 4.5% to $27.87bn from $29.18bn last year.
Net interest income stood at $15.76bn, a fall of 4.1% from $16.44bn in the first half of 2015. Total operating expenses dropped 2.9% to $18.63bn from $19.18bn the year ago.
The bank’s Retail Banking and Wealth Management arm posted pre-tax profit of $2.38bn for the first half of 2016, a fall of 29.1% from $3.36bn in the prior year.
The global private banking unit reported pre-tax loss of $557m, compared to a pre-tax profit of $180m the year earlier.
HSBC CEO Stuart Gulliver said: “Following the successful sale of our Brazil business and having received the appropriate regulatory clearances, I am pleased to announce that we will execute a share buy-back of up to $2.5bn, which should benefit all shareholders and demonstrates the strength and flexibility of our balance sheet. We performed reasonably well in the first half. I am particularly pleased with our progress in reducing costs and continuing to reduce risk-weighted assets.
“Our highly diversified, universal banking business model helped to drive growth in a number of areas and we captured market share in many of the product categories that are central to our strategy. While economic conditions remain difficult, we are making progress in all of the areas within our control. In the meantime, our balanced business model, strong liquidity and strict cost management make us highly resilient.”