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Banking group HSBC profit jumped in the first half of the year as an improving macroeconomic outlook led to lower-than-planned credit impairments.
For the half year ended June 30, pre-tax profit rose to $10.84 billion from $4.32 billion year-on-year even as revenue slipped down 4% to $25.6bn.
Reported expected credit losses were a net release of $0.7 billion, compared with a $6.9 billion charge in 1H20.
'The net release in 1H21 primarily reflected an improvement in the economic outlook since 2020. The reduction also reflected low levels of stage 3 charges in 1H21, as well as the non-recurrence of a large charge in 1H20 related to a corporate exposure in Singapore,' the company said.
The company declared an interim dividend for 1H21 of $0.07 per ordinary share.
'The group maintains a strong capital position and is well placed to fund growth and step up capital returns. Reflecting the current improved economic outlook and operating environment in many of our markets, we now expect to move to within our target dividend payout ratio range of 40% to 55% of reported earnings per ordinary share in 2021,' it added.