Top > Business > 2006 > August > 2006-08-01

HSBC Improves on 2005 First-Half Earnings

Global banking giant HSBC Holdings on Monday reported its earnings for the first half of the year surged by 15 percent. The company, which touts itself as the "world`s bank", said its profits were boosted by fruitful expansion into new markets. According to the report from HSBC, the banking group earned $8.73 billion in the first six months of the year 2006 that closed on June 30.

In same period last year, HSBC reported $7.6 billion in net income. This year`s results beat analysts` $8.1 billion forecasts. Vincent Cheng, who is HSBC`s Asia-Pacific chairman, said the company has plans to explore the Japanese market now. "The Japanese market is showing signs of change. We are now seeing more demand for investment products and HSBC is recognized as a fund-management provider."

Revenues improved by $1.37 billion compared with the same period of last year. Operating costs also rose by just $429 million when compared with $650 million in the same period of 2005. HSBC shares rose 0.4 percent to 978 pence ($18.22) on the London Stock Exchange. Earnings in Brazil, China and India rose by more than 20 percent. Another factor that increased profits was a drop in the group`s costs.