Financial performance
· Reported profit before tax ('PBT') up 10% in the first half of 2015 ('1H15') at $13,628m compared with $12,340m in the same period in 2014 ('1H14').
· Adjusted PBT up 2% in 1H15 at $13,002m compared with $12,722m in 1H14, driven by a strong performance in Asia.
· Earnings per share were $0.48 and dividends per ordinary share were $0.20 (in respect of the period), compared with $0.50 and $0.20 respectively for the equivalent period in 2014. The second interim dividend was $0.10.
· Adjusted revenue up 4% at $30,772m driven by revenue growth in client-facing GB&M, principally in Equities and Foreign Exchange. Revenue also increased in Principal RBWM and CMB.
· Adjusted operating expenses up 7% at $17,642m reflecting investment in growth, and regulatory programmes and compliance costs.
· Strong capital base with a CRD IV end point CET1 capital ratio of 11.6%, up from 11.1% at 31 December 2014.
Strategy execution
· Clearly defined actions to capture value from our global network in a changed world:
− Growth of 6% in Global business synergies, demonstrating the strength of our universal banking model
− Revenue from transaction banking products grew 8% highlighting the value and potential of our international network
− Progress on reducing Group RWAs with a $50bn reduction relating mainly to GB&M
− Entered into an agreement to sell entire business in Brazil
− Commenced initiatives to reduce costs
Stuart Gulliver, Group Chief Executive, said:
"Our performance in the first half of 2015 demonstrated the underlying strength of our business. Our diversified, universal model enabled the Group to deliver increased profitability in spite of slow global growth. We are executing the actions that we announced at our Investor Update in June and our focus is on making significant progress during the remainder of the year."
