HSBC Holdings sees dividends after 3 years of cutting costs

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HSBC Holdings sees dividends after 3 years of cutting costs

HSBC Holdings said pretax profit rose 10 percent to $14.1 billion in the first half, as its three-year cost-cutting plan started to pay off. Earnings, however. fell short of expectations due to a fall in revenue.

Europe’s biggest bank’s pretax profit was up from $12.7 billion a year ago, but fell short of the average of $14.6 billion forecast by analysts, on the basis of figures from 14 banks and brokerages polled by the company.

Revenue fell 7 percent to $34.4 billion as the bank said Western economic growth remained muted and growth in China and Asia slowed, while regulatory reforms added costs for banks.

HSBC is focused on cutting costs and restructuring measures which remain essential in an industry struggling to grow. Reuters
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