Barclays and HSBC announce profits - Economy - News - Moneyfacts


Barclays and HSBC announce profits

Barclays and HSBC announce profits

Category: Economy

Updated: 04/08/2009
First Published: 04/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Barclays has announced pre-tax profits of almost £3 billion in its financial results for the first six months of 2009, while HSBC reported half year profits of $5 billion.

In the first six months of 2009, Barclays income increased by 37 per cent, soaring to £16.25 billion.

The performance of its investment banking and investment management arm was a key driver of the bank's performance, with Barclays Capital achieving profits of £1.05 billion, almost double the £524 million that was recorded 12 months previously.

Its retail banking operations in the UK saw profits fall from £690 million to £268 million, a contraction of 61 per cent, while bad debt across its entire international business rose from £2.45 billion to £4.56 billion.

"In challenging market conditions, we have continued to benefit from our diversified business base," said John Varley, chief executive. "The investments we have made, particularly in our international businesses, are driving very strong income performance and allowing us to absorb the consequences of the economic downturn."

HSBC's profits were half those recorded in the same period last year, with the bank also having to write of billions in bad debt, $13.9 billion in total, an almost 40 per cent rise on last year. Both banks saw their share process improve by midday yesterday.

Lloyds Banking Group, Northern Rock and Royal Bank of Scotland will announce their half year figures later this week.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.

What does a US Fed rise mean for the UK?

The US Federal Reserve has decided to raise interest rates, and although you may not think that financial events happening in the US will have much of an impact on UK soil, you may be surprised…