(4 April 2011 – Australia) After announcing a pre-tax profit fall of 13 percent for the June half, HSBC Australia is reportedly expecting a general slowing in business for the rest of the year.Chief executive Paulo Maia said he was ‘much more cautious’ about the outlook for the remainder of 2011, with the consumer malaise broadening into a more widespread slowdown. ‘I think that’s been happening for the past two months,’ Mr Maia said.
‘There is single-digit credit growth and uncertainty, which won’t change until there is more confidence overseas.’
Mr Maia welcomed the Reserve Bank’s decision to keep official interest rates on hold, despite high headline inflation of 0.9 percent in the June quarter.
While pre-tax profits retreated by 13 percent compared to 2010, Mr Maia did, however, highlight a small improvement in the bank’s A$129 million pre-tax result for the December half-year.