- HSBC (NYSE:HSBC) ADRs falls 2.0% in premarket trading in the U.S. and HSBC Holdings slips 1.7% in London trading after its CEO, John Flint, is unexpectedly ousted from the company only 18 months on the job.
- In addition, the bank plans to cut thousands of jobs and slow investment spending, the Wall Street Journal reports, citing an interview with Finance Director Ewen Stevenson.
- Severance costs would be $650M-$700M this year.
- Plans to start a share buyback of up to $1B soon.
- HSBC's H1 profit before tax rose 16% to $12.4B, including $828M gain recognized on the merger of its associate The Saudi British Bank with Alawwal bank in Saudi Arabia, a provision of $615M for mis-selling of payment protection, and $248M of severence costs.
- H1 adjusted profit before tax rose 6.8% to $12.5B.
- H1 net interest margin 1.61% vs. 1.66% in H1 2018.
- Continues to target return on tangible equity over 11% in 2020.
- Previously: HSBC Holdings reports 1H results (Aug. 5)