HSBC MENA swings to pre-tax net profit of $386mln from $70mln loss

The UK-based bank said all regions across the world had been profitable

  
Image used for illustrative purpose. HSBC bank is pictured in Geneva, Switzerland, November 8, 2017.

Image used for illustrative purpose. HSBC bank is pictured in Geneva, Switzerland, November 8, 2017.

REUTERS/Denis Balibouse

HSBC’s Middle East and North Africa (MENA) region on Monday reported a pre-tax net profit of $386 million for the quarter ended June 2021 compared with a $70 million loss in the year-ago period, as the region bounced back into recovery from the COVID-19 pandemic.

For H1-2021 the region made a pre-tax profit of $0.7 billion. 

Worldwide, biggest bank by assets made a pre-tax profit of $5.6 billion compared with $2.59 billion in the same period a year earlier, it said in a statement. 

Noel Quinn, Group Chief Executive, said: “These are good results that reflect the return of growth in our main markets and marked progress in the execution of our strategy. We were profitable in every region in the first half of the year, supported by the release of expected credit loss provisions."

The UK-based bank said while all regions had been profitable in the period under review, its result was boosted by performances in its two biggest markets, Britain and Hong Kong.

Looking ahead the bank said that despite continued revenue headwinds, as well as low interest rates and COVID-19 impacts, “there are emerging signs of unsecured personal lending and commercial lending growth.” 

(Reporting by Brinda Darasha; editing by Seban Scaria)

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