Jul 31, 2017
Gulliver and Flint’s efforts at HSBC seem to be finally paying off
Their efforts now seem to be finally paying off, as shown by solid quarterly results published on Monday. Soon after Mr Flint and Mr Gulliver took charge, HSBC was reeling from the damage to its reputation caused by an almost $2bn fine for breaching US sanctions and laundering large amounts of money for Mexican drug gangs. The bank underlined its improving fortunes on Monday by announcing second-quarter profits of $3.87bn, outstripping analysts' expectations with a year-on-year increase of 57 per cent that took its total profits for the first six months of this year to $7bn. It also unveiled a $2bn share buyback plan, lifting the amount of total stock it has pledged to buy during the past year to $5.5bn. Like its big US rivals, analysts say HSBC is this year set to return 100 per cent of profits to investors via dividends and buybacks. Mr Gulliver said he was "Very happy" with the results, adding that the bank had benefited from "Revenue growth in all three of our global businesses". Finally, the bank is seen as one of the big winners from rising US interest rates, for which it is well positioned with a large excess of deposits to loans.
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