HSBC’s profits more than doubled in H1‎

HSBC Bank announced today, Tuesday, that it recorded a jump in profits for the first half of the year by more than double, supported by high interest rates around the world and its plan to sell its French unit.

According to “Reuters”, the bank raised the main performance target with higher profits and announced a new share buyback program worth up to $2 billion.

The largest bank in Europe by market value of $162 billion made pre-tax profits of $21.7 billion for the first six months of this year, up from $9.2 billion in the same period last year.

The results came in better than the average estimate of $20.9 billion in a survey of brokers conducted by the bank.

The London-based bank said it would pay an initial dividend of 10 cents per share

Despite the jump in profits, the bank warned that many clients would be affected by the uncertainty surrounding the economic outlook, especially in Britain, where the highest rate of inflation among the Group of Seven major countries and the continuous rise in interest rates combine to increase pressure on families.

The bank said its credit losses rose to $1.3 billion in the first six months, compared with $1.1 billion a year earlier, due in part to its exposure to commercial real estate in China and commercial banking in Britain.

Reuters reported in May that the bank, which derives about two-thirds of its revenues from Asia, was considering exiting a dozen countries to boost profits.

On Tuesday, the bank said it had listed its business in Oman for sale, after last year merging its unit there with rival Bank Sohar International.

The bank also sold its retail banking activities in Canada and France and its activities in Greece, announced an exit from Russia and stopped personal banking services in New Zealand.