(6 August 2008 – Australia) HSBC Australia has reported a significant rise in first half year profit on the back of strong performance in corporate banking and brokerage services.HSBC’s local arm reported a US$100m profit before tax for the half year ending June, representing a substantial increase of 96 percent on 2007.
The local bank’s parent company, UK based HSBC Holdings, struggled under the strain of inclement economic conditions, with profits down to US$7.72b, a fall of 29 percent on the first half of the previous year.
HSBC Australia on the other hand experienced a healthy increase in the overall scale of operations with deposits up by 34 percent and loans growing by 29 percent.
The bank’s personal financial services division saw the half year profits rise by a healthy 21 percent on the previous year, to US$15m.
But the real jewels in HSBC’s performance were its commercial banking and broking divisions, with profits increasing by 112 percent (to US$34m) and 194 percent (to US$47m) respectively.
HSBC Australia chief executive Stuart Davis said the bank is alert of both the risks and opportunities faced in the current economic climate.
The broking division benefitted from substantial market volatility and activity in the first half of the year while commercial banking division retained its focus on the middle market and catering to the large corporate clients with international needs.
Mr Davis said the bank will continue to focus on areas where it has fundamental competitive advantage and will leverage its strong position to support clients in uncertain economic conditions.