HSBC-CONTINENTAL-EUROPE
Regulatory News:
On 30 July 2024, HSBC Continental Europe’s Board of Directors approved the consolidated financial statements for the first half of 2024.
Andrew Wild, CEO of HSBC Continental Europe, said:
“We delivered a strong performance during the first half of 2024 which demonstrates the effectiveness of our strategy, leveraging on our global franchise and our international connectivity. Our ambition is to be the leading international wholesale bank in Europe servicing corporates and financial institutions, complemented by a targeted wealth and private banking offering.”
Profit before tax1 was €502m for the first half of 2024, driven by wholesale banking revenues, coupled with low credit losses and continued cost discipline.
Net operating income before change in expected credit losses and other credit impairment charges1 was €1,672m, down from €1,885m in the first half of 2023, due to lower net interest income following the sale of retail banking operations in France. Wholesale revenues in Commercial Banking and Global Banking remained strong, with growth in Global Payment Solutions and Investment Banking, partly offset by lower lending volumes. Revenues in Markets and Securities Services were down compared to the first half of 2023, with lower client activity in Global Debt Markets in the context of a challenging market environment, partly offset by higher revenues in Equities and Securities Financing.
Change in expected credit losses and other credit impairment charges1 was a charge of €18m, compared with a charge of €16m in the first half of 2023. The cost of risk2, at 7bps, remained low but was driven by provision releases that are not expected to re-occur in the second half of 2024.
Operating expenses1 were €1,152m, compared to €1,126m in the first half of 2023. Higher infrastructure and technology costs and the acquisition of HSBC Private Bank (Luxembourg) S.A. were partly offset by lower contributions to the Single Resolution Fund.
Profit after tax for the period was €370m, down from €1,944m in the first half of 2023 which included the reversal of the impairment previously recognised in relation to the sale of retail banking operations in France of €1.9bn pre-tax3.
The consolidated balance sheet of HSBC Continental Europe showed total assets of €280bn at 30 June 2024, compared to €283bn at 31 December 2023.
At 30 June 2024, HSBC Continental Europe reported an average liquidity coverage ratio (LCR)4 of 156% and a net stable funding ratio (NSFR)5 of 136%. The bank’s fully loaded common equity tier 1 (CET1) ratio was 15.1% and the fully loaded total capital ratio was 19.8%. The fully loaded leverage ratio was 4.3%. The solvency ratio of the Insurance subsidiary was 287%6.
Appendix
Interim accounts were subject to a limited review by the statutory auditors.
Summary consolidated income statement
€m |
Half year to 30 June 2024 |
Half year to 30 June 2023 |
Continuing operations |
|
|
Net interest income |
941 |
1,173 |
Net fee income |
594 |
585 |
Net income from financial instruments held for trading or managed on a fair value basis |
114 |
61 |
Other operating income/(expense) |
23 |
66 |
Net operating income before change in expected credit losses and other credit impairment charges |
1,672 |
1,885 |
Change in expected credit losses and other credit impairment charges |
(18) |
(16) |
Total operating expenses |
(1,152) |
(1,126) |
Profit/(loss) before tax |
502 |
743 |
Tax expense |
(132) |
(187) |
Profit/(loss) after tax in respect of continuing operations |
370 |
556 |
Profit/(loss) after tax in respect of discontinued operations |
— |
1,388 |
Profit/(loss) after tax for the period |
370 |
1,944 |
Profit/(loss) attributable to shareholders of the parent company |
350 |
1,933 |
Profit/(loss) attributable to non-controlling interests |
20 |
11 |
Profit/(loss) for the period by global business
|
Continuing Operations |
||||||||||||||
|
Wealth and Personal Banking |
Commercial Banking |
Markets and Securities Services |
Global Banking |
Global Banking and Markets Other |
Corporate Centre |
Total |
||||||||
|
|
|
|
|
|
|
|
||||||||
€m |
Half year to 30 June 2024 |
||||||||||||||
Net operating income before change in expected credit losses and other credit impairment charges |
290 |
693 |
400 |
392 |
7 |
(110) |
1,672 |
||||||||
o/w net interest income/(expense) |
202 |
494 |
113 |
203 |
13 |
(84) |
941 |
||||||||
Change in expected credit losses and other credit impairment charges |
5 |
(30) |
— |
10 |
1 |
(4) |
(18) |
||||||||
Total operating expenses |
(204) |
(319) |
(361) |
(214) |
(11) |
(43) |
(1,152) |
||||||||
Profit/(loss) before tax |
91 |
344 |
39 |
188 |
(3) |
(157) |
502 |
||||||||
|
|
||||||||||||||
Half year to 30 June 2023 |
|||||||||||||||
Net operating income before change in expected credit losses and other credit impairment charges |
313 |
712 |
433 |
369 |
8 |
50 |
1,885 |
||||||||
o/w net interest income/(expense) |
280 |
530 |
105 |
211 |
6 |
41 |
1,173 |
||||||||
Change in expected credit losses and other credit impairment charges |
8 |
22 |
1 |
(48) |
1 |
— |
(16) |
||||||||
Total operating expenses |
(185) |
(290) |
(394) |
(189) |
(17) |
(51) |
(1,126) |
||||||||
Profit/(loss) before tax |
136 |
444 |
40 |
132 |
(8) |
(1) |
743 |
||||||||
Business disposal – Retail banking operations in France
On 1 January 2024, HSBC Continental Europe completed the sale of its retail banking operations in France to CCF, a subsidiary of Promontoria MMB SAS (‘My Money Group’). The sale also included HSBC Continental Europe’s 100% ownership interest in HSBC SFH (France) and its 3% ownership interest in Crédit Logement.
Upon being classified as held for sale in 2023, retail banking operations in France met the criteria of discontinued operations classification and presentation under IFRS 5. Accordingly, the profit/(loss) of the discontinued operations as of June 2023 amounting to €1.4bn has been reported separately in the income statement, including the reversal of pre-tax IFRS 5 loss of €1.9bn.
HSBC Continental Europe
Headquartered in Paris, HSBC Continental Europe is an indirectly held subsidiary of HSBC Holdings plc. HSBC Continental Europe principally comprises, in addition to its banking, insurance and asset management activities based in France, the business activities of 10 European branches (in Belgium, Czech Republic, Germany, Ireland, Italy, Luxembourg, Netherlands, Poland, Spain and Sweden) and two bank subsidiaries in Continental Europe (in Luxembourg and Malta). HSBC Continental Europe’s mission is to serve both customers in Continental Europe for their needs worldwide and customers in other Group countries for their needs in Continental Europe.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the world’s largest banking and financial services organisations.
Disclaimer
This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the entity. Statements that are not historical facts, including statements about the entity’s beliefs and expectations, are forward-looking statements. Words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, ‘potential’ and ‘reasonably possible’, variations of these words and similar expressions are intended to identify forward-looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made. HSBC Continental Europe makes no commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement. Forward-looking statements involve inherent risks and uncertainties. Readers are cautioned that a number of factors could cause actual results to differ, in some instances materially, from those anticipated or implied in any forward-looking statements.
__________________________________
1 In respect of continuing operations. Retail banking operations in France met the criteria of discontinued operations classification under IFRS 5 in 2023. Accordingly, the profit/(loss) of the discontinued operations as of June 2023 has been reported separately.
2 Annualised cost of risk divided by customer loans outstanding at the end of the period.
3 As the sale no longer met the criteria for the operations to be classified as held for sale in the first half of 2023. The impairment was recognised again in the second half of 2023 ahead of the completion of the sale on 1 January 2024.
4 Computed in respect of the EU Delegated act.
5 Computed in respect of CRR II (Regulation EU 2019/876).
6 LCR, NSFR and the solvency ratio of the Insurance subsidiary are unaudited.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731545246/en/
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
LambdaTest and SVAM International Inc. Announce Partnership to Transform Quality Engineering for Businesses26.11.2025 18:00:00 CET | Press release
The alliance empowers enterprises with accelerated SDLC cycles, reduced testing effort, and modern AI-driven digital transformation capabilities LambdaTest, a Gen-AI native quality engineering platform, announced a partnership with SVAM International, Inc., a global leader in digital transformation services. This strategic alliance marks a significant step forward in their mission to transform quality engineering for businesses worldwide. The partnership allows LambdaTest to extend its AI-native quality engineering capabilities into SVAM’s extensive digital transformation ecosystem. By integrating with SVAM’s experience in large-scale application development, testing, and delivery across major New York State and City agencies, as well as their platform expertise across Salesforce, ServiceNow, and Dynamics365, LambdaTest will empower more enterprises to modernize their software delivery pipelines. With LambdaTest’s intelligent test orchestration and execution engine at the core, teams c
GLORY Acquires Remaining Equity Shares in Acrelec Group26.11.2025 16:11:00 CET | Press release
Acrelec becomes a wholly owned subsidiary of Glory Glory Global Solutions (International) Ltd, a wholly-owned subsidiary of GLORY Ltd. [TYO:6457], has announced the acquisition of the remaining equity shares in Acrelec Group SAS. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251126039437/en/ Acrelec is a global technology company focused on reinventing the customer experience for restaurant and retail brands. Leveraging decades of software, hardware and service expertise, the company develops and integrates new platforms that increase customer engagement, optimize efficiency and improve operations. With over 120,000 installations across more than 70 countries, Acrelec counts many of the world’s best-known restaurant mega-brands among its customers. We announce that Jalel Souissi has left the Acrelec Group following the completion of the recent share acquisition. Jalel Souissi has played a pivotal role in the development and
Andersen Global styrker sin platform i Tyrkiet med tilføjelsen af medlemsvirksomhed26.11.2025 14:49:00 CET | Pressemeddelelse
Andersen Global udvider sin tilstedeværelse i Tyrkiet, efter at Celen Corporate Property Valuation & Counseling Inc. bliver til Andersen i Tyrkiet, hvilket udvider de kompetencer, der tilbydes under Andersen-brandet i landet. Det Istanbul-baserede firma blev stiftet i 1995 og ledes af Managing Partner Guniz Celen med en bred vifte af ydelser til både nationale og internationale kunder. Med ekspertise inden for finansiering af fast ejendom, værdiansættelse af materielle og immaterielle aktiver samt formueforvaltning leverer den tyrkiske afdeling af Andersen løsninger, der understøtter komplekse finansielle beslutninger for kunder i mere end 18 lande. “Vores mission har altid været at levere løsninger på de mest komplekse udfordringer inden for ejendoms- og investeringssektoren,” sagde Guniz. “At blive en del af Andersen-brandet styrker vores kompetencer som en betroet rådgiver og giver os adgang til globale ressourcer, hvilket gør os i stand til at skabe endnu større langsigtet værdi fo
Cegid Acquires Shine to Accelerate the Path of Becoming Europe's Leading Financial Copilot for SMBs and Accountants26.11.2025 14:00:00 CET | Press release
Transformative combination creates a powerhouse for SMBs and accountants, empowering businesses across Europe by integrating leading suites of e-invoicing, digital accounting, business accounts and payments, and HR solutions into a unified platform. Cegid, a European leader in cloud software for finance, accounting, HR, and retail software, and Shine, a fast-growing European fintech unicorn providing digital business accounts and payments, e-invoicing, accounting, and payroll software to small businesses across Europe, announced today that the companies have entered a definitive agreement to join forces to form a European champion and become a leading provider of software for businesses and their accountants. This transformational combination will create the first fully integrated, cloud-native and AI-driven financial hub for SMBs and accounting professionals in Europe – bringing together market-leading capabilities in e-invoicing, accounting, digital business accounts and payments, ta
U.S. FDA Grants Priority Review to Sonrotoclax for the Treatment of Relapsed or Refractory Mantle Cell Lymphoma26.11.2025 12:00:00 CET | Press release
If approved, sonrotoclax will become the first BCL2 inhibitor for R/R MCL in the U.S., addressing a high unmet need in an aggressive cancerSonrotoclax previously received Breakthrough Therapy Designation based on clinically meaningful, rapid responses in R/R MCLBeOne Medicines will present the data supporting the NDA and Priority Review for the first time at ASH 2025 BeOne Medicines Ltd. (Nasdaq: ONC; HKEX: 06160; SSE: 688235), a global oncology company, today announced that the U.S. Food and Drug Administration (FDA) has accepted and granted Priority Review to a New Drug Application (NDA) for sonrotoclax, a next-generation BCL2 inhibitor, for the treatment of adult patients with relapsed or refractory (R/R) mantle cell lymphoma (MCL), following treatment with a Bruton’s tyrosine kinase (BTK) inhibitor. “Sonrotoclax is advancing with remarkable speed, from Breakthrough Therapy Designation to Priority Review, all within a short window,” said Lai Wang, Ph.D., Global Head of R&D at BeOne.
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom