India is the bank’s fourth-largest contributor to the profit of HSBC Holdings Plc, after Hong Kong at $2.5 billion, UK at $2.3 billion and Mainland China at $1.9 billion. In the first half of 2021, HSBC’s India operations had made a pre-tax profit of $529 million.
HSBC India said it has has aggressive growth plans and is focused on customer acquisition and growth in balance sheet. The bank said it is looking to meaningfully grow the number of customers across all segments and plans to double, triple or quadruple its customer base across segments. Digital is a top focus for the bank and it is leveraging technology, digital and data at the front end and artificial intelligence at the back to support its growth ambitions, it said in a statement.
On a global basis, its reported profit before tax decreased by $1.7 billion to $9.2 billion, which the bank said reflects a net charge for expected credit losses and other credit impairment charges, compared with a net release in the first half of 2021. The bank’s reported profit after tax increased $0.8 billion to $9.2 billion, including a $1.8 billion gain on the recognition of a deferred tax asset from historical losses, as a result of improved profit forecasts for the UK tax group, which accelerated the expected utilization of these losses.
“Our first-half performance reflects the continued impact of our strategy, with gathering revenue momentum and tight cost control. The progress that we have made growing and transforming HSBC means we are in a strong position as we enter the current rates cycle," said Noel Quinn, group chief executive, HSBC Holdings Plc.
The bank said in a statement that the revenue outlook remains positive. Based on the current market consensus for global central bank rates and the bank’s continued mid-single digit percentage lending growth expectations for 2022, it expects net interest income of at least $31 billion for 2022 and at least $37 billion for 2023.
