HSBC Profits Tumble as Chinese Slowdown and Brexit Turmoil Strike

HSBC said revenue fell 11pc in the first half of the year.

by Tim Wallace

HSBC’s profits slumped 29pc in the first half of 2016 amid concerns over the EU referendum and the state of China’s economy.

The UK-based bank’s pre-tax profits fell to $9.7bn (£7.2bn), compared with $13.6bn a year earlier.

Despite the poor results, HSBC’s share price jumped by 3.2pc, as bosses announced a $2.5bn share buyback. The deal gives shareholders some of the money that was raised when the bank sold its Brazilian operations earlier this year.

Bosses said that depending on regulatory approval and the result of the upcoming UK stress tests, HSBC could buy back more shares. A potential payout from the bank’s US arm into HSBC’s holding company – which would mark first dividend from the US since 2007 – could also result in another share buyback.

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