HSBC's First-Half Profits Fall 29%

HSBC has reported its core profit for the first half of the year has fallen 29%, below estimations.

In a statement the bank said that pretax profit slipped to $9.7bn (£7.3bn) in the six months to June, down from $13.6bn (£10.2bn) for the same period last year. Adjusted revenue fell by 4%.

The bank has attributed the $3.5bn (£2.6bn) fall in revenue to a slowdown in its key markets of Britain and Hong Kong, and "exceptional volatility" during a turbulent six months.

"Following the outcome of the referendum...there has been a period of volatility and uncertainty which is likely to continue for some time," said chief executive Stuart Gulliver in a statement.

"We are actively monitoring our portfolio to quickly identify any areas of stress, however it is still too early to tell which parts may be impacted and to what extent," he added.

Group chairman Douglas Flint says HSBC had not anticipated that Britain would choose to leave the EU, but insisted that whilst market conditions have been challenging, the bank had come through the period "securely."

"It (Other OTC: ITGL - news) is evident that we are entering a period of heightened uncertainty where economic risks are being overshadowed by political and geo-political events," Mr Flint said.

He added that UK business is now entering a new era and establishing fresh terms of trade with EU and global partners would be "complex and time-consuming", however he remains optimistic about HSBC's strategy.

"Amid a turbulent period, nothing cast doubt on the strategic direction and priorities we laid out just over a year ago," he said.

The London based bank has determined to return to shareholders $2.5bn (£1.8bn), by way of a share buy-back, during the second half of the year, following the successful sale of its business in Brazil.