HSBC-CONTINENTAL-EUROPE
31.7.2024 11:01:28 CEST | Business Wire | Press release
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
Andersen Global udvider sin afrikanske platform med tilføjelsen af medlemsfirma i Namibia9.5.2026 02:35:00 CEST | Pressemeddelelse
Andersen Global udbygger sin tilstedeværelse i Afrika med tilføjelsen af Andersen in Namibia, da Windhoek Advisory & Taxation tager Andersen-brandet til sig og styrker sine forudsætninger for at betjene virksomheder med aktiviteter i et af det sydlige Afrikas dynamiske vækstmarkeder. Andersen in Namibia har været et samarbejdsfirma siden 2021 og er en lokalt ejet revisions- og konsulentvirksomhed, der leverer ydelser inden for regnskab, skat og forretningsrådgivning, tilpasset de unikke behov i Namibias erhvervsklima. Med ekspertise inden for minedrift, landbrug, logistik, turisme og finansielle tjenesteydelser – sektorer, der er afgørende for Namibias økonomi – bistår firmaet både indenlandske virksomheder og internationale selskaber, der etablerer sig i regionen. Gennem cloudbaseret teknologi og datadrevet indsigt leverer Andersen i Namibia effektive og skalerbare løsninger, der gør det muligt for virksomheder at optimere deres drift, håndtere skatteforpligtelser på tværs af jurisdik
Andersen Consulting styrker sine kompetencer inden for organisatorisk transformation med Afiniti8.5.2026 20:45:00 CEST | Pressemeddelelse
Andersen Consulting annoncerer en samarbejdsaftale med Afiniti, et globalt konsulentfirma inden for forretningstransformation med hovedkontor i Storbritannien, der hjælper organisationer med at levere og opretholde komplekse forandringsprojekter. Afiniti blev stiftet i 2003 og er et globalt konsulenthus inden for forretningsforandring med base i Storbritannien og USA. De støtter klienter gennem komplekse transformationer på tværs af mennesker, processer, systemer og data, og de skaber mærkbare forandringer gennem kreative konsulentydelser. Virksomheden betjener primært stærkt regulerede, sikkerhedsdrevne og aktivtunge organisationer med store, geografisk spredte arbejdsstyrker inden for sektorer som energi, forsyning, biovidenskab, transport og byggeri. Afiniti samarbejder med velkendte brands om at levere ekspertise fra start til slut på tværs af organisatoriske, digitale og ai-baserede transformationer samt ændringer i kultur og driftsmodeller. Dette gælder især komplekse scenarier s
Verdantis Launches MRO360 “The World's First AI-Native Spare Parts Intelligence Platform”8.5.2026 15:40:00 CEST | Press release
MRO360 is the first milestone in Verdantis's journey to deliver the industry's first fully AI-native Enterprise Asset Management solution. Verdantis today announced the global launch of MRO360, a purpose-built AI platform that transforms how asset-intensive organizations manage their MRO spare parts inventory. Designed for manufacturers, oil and gas operators, mining companies, utilities, and other industrial enterprises, MRO360 deploys nine interconnected AI agents that continuously forecast demand, score parts criticality, manage obsolescence risk, calculate dynamic reorder points, helps intercompany plant transfer thereby realizing the exact dollar value of every optimization opportunity across a spare parts catalog in real time. Unlike traditional EAM and CMMS platforms built on static rules, MRO360's agents adapt continuously as demand patterns, supplier performance, and equipment health evolve. For the first time, a maintenance planner can see which work orders are at supply risk
Cyble Positioned as a Challenger in the 2026 Gartner® Magic Quadrant™ for Cyberthreat Intelligence Technologies8.5.2026 15:22:00 CEST | Press release
Cyble today announced it has been recognized as a Challenger in the 2026 Gartner® Magic Quadrant™ for Cyberthreat Intelligence Technologies. The company believes this recognition underscores Cyble’s mission to make threat intelligence truly operational—delivering AI-native capabilities that enable enterprises, government agencies, and MSSPs to shift from reactive security to proactive, intelligence-driven defense. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260508164528/en/ Cyble Named a Challenger in the 2026 Gartner® Magic Quadrant™ for Cyberthreat Intelligence Technologies "Security teams are under constant pressure to respond faster with greater accuracy," said Beenu Arora, Co-Founder and CEO, Cyble. "We believe this recognition highlights our focus on delivering intelligence that drives real outcomes—cutting through noise, accelerating response, and enabling confident decision-making at scale." Intelligence That Acts
WHOOP Expands Health Platform with On-Demand Clinician Access and New AI Features8.5.2026 15:00:00 CEST | Press release
New updates introduce a more personalized, data-driven member experience—bridging the gap between continuous biometrics, real-world context, and clinical insight WHOOP, the human performance company, today announced a new suite of health and AI-driven enhancements and feature updates across the WHOOP memberships, marking a major step forward in its evolution into an intelligent health platform. These updates deepen the company’s commitment to delivering highly personalized, accurate, and actionable insights. They signal the company’s expansion beyond performance optimization into clinical-grade health support. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260508464188/en/ WHOOP Expands Health Platform with On-Demand Clinician Access and New AI Features “WHOOP is a membership, and we take that seriously,” said Ed Baker, Chief Product Officer of WHOOP. “We’re always asking how we can deliver more value to our members, and the
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