British banking giant H.S.B.C. reported a 29 percent slump in profits in the first half of the year, which it described as a “reasonable performance” amid considerable uncertainty in financial markets. The bank also announced a share buyback of up to $2.5bn in the second half of this year, a move that buoyed up its shares by three percent despite weak numbers. Analysts said the fall in profit was expected owing to restructuring costs and weak revenues.
The bank’s results are announced at a time when European banking sector is under huge stress in the wake of record low interest rates and increasing regulatory costs, writes the BBC.
H.S.B.C. said it is scrapping its timetable to achieve a 10 percent equity return by the end of 2017, given the “current uncertain economic and geopolitical environment,” notes The Wall Street Journal.
Alongside the report, H.S.B.C. admitted that its operations in America were not in compliance with a U.S. regulator’s order, which required the bank to bolster its defenses against financial crime, reports The Guardian. The U.K.’s biggest bank said it is taking the steps required to comply with the order, without providing any specific details.