HSBC remains strong and well positioned

HSBC plc announced its 2009 interim results recently in London. The results covered the HSBC Group's financial performance for the first half of the year. The interim results show that despite the tough economic environment, HSBC has continued to deliver profit, remain financially strong and is well-positioned for the future.

On a reported basis, pre-tax profit was US$5 billion, significantly better than the second half of 2008.

Diversified business model delivered strong revenues - 10 per cent higher than in the first half of 2008, on an underlying basis and excluding movements in fair value on our own debt related to credit spreads.

Group Chairman stated that in this unprecedented economic environment, every financial institution has had to consider carefully what level of risk is appropriate for its business model.

HSBC has continued to position its balance sheet conservatively, while focusing on enhancing the capabilities which will enable the Bank to deliver sustainable long-term growth once the current global downturn has ended.

He mentioned that HSBC fundamentally remains a deposit-led banking group, with a business model committed to long-term customer relationships and an emphasis on the world's faster growing markets.

This gives its revenue streams diversity of both customer group and geography, providing resilience for the Group in these difficult economic conditions.

Group Chief Executive, stated that as economies begin to recover and interest rates start to rise, HSBC is confident that its deposit strength will reinforce its profitability and its flexibility to respond to new customer demand. HSBC, therefore, continues to manage the quality of its asset base carefully, and it maintains a conservative approach to risk.

19 August 2009