HSBC’s retail focused Personal Financial
Services division has reported first half profits before tax of
$1.2bn, compared with a loss of $1.2bn in the first half of
2009.
Retail loan impairment charges were down by
51%, driven by reduced balances, improved economic and credit
conditions, lower delinquency levels and higher repayment
activity.
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Group wide, HSBC posted pre-tax profits of
$11.1bn for the first half, more than double the year ago period
(H109 $5.0bn).
More than half of HSBC’s first half profits
were earned in Asia, where pre-tax first half profits of $5.6bn
were 20% up year-on-year.
A strong performance in Latin America resulted
in first half profits of $900m , up 36% but pre-tax profits in
Europe fell by 19% to $2.8bn.
Pre-tax profits at HSBC’s private banking unit also fell, by 12%
from the year ago first half to $556m.
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Retail banking highlights included the ongoing
success of HSBC’s flagship mass-affluent Premier account. HSBC said
that a net 469,000 customers signed up to Premier in the first half
of 2010, taking the total Premier customer base to 3.9m.
Michael Geoghegan, HSBC chief executive said:
“we are on track to build the [Premier] customer base to six
million by the end of 2011. Revenues from Premier customers can be
over four times that generated by a standard account in the current
interest rate environment.”
HSBC’S Advance product, an all-in-one packaged
account targeted at current account customers in the mid-market
segment, was rolled out at the start of the year and has already
attracted 3.6m customers across 22 markets.
