HSBC Holdings PLC’s net profit rose in the second quarter as the London-based lender reduced provisions for bad loans caused by the economic fallout from the coronavirus pandemic.
The bank earned a better-than-expected $3.4 billion in the three months to the end of June, much higher than the $192 million it reported for the same period last year. Analysts had predicted HSBC, one of the world’s largest banks, would report a $2.41 billion net profit in the second quarter of 2021.
The bank shrunk its provisions against bad loans by $284 million, building on a $435 million decrease in the previous quarter.
“These are good results that reflect the return of growth in our main markets and marked progress in the execution of our strategy,” Chief Executive Noel Quinn said in a statement.
The bank said it would pay a cash dividend of 7 cents a share for the first half of the year. It paused payouts in 2020 in response to a request that the Bank of England made to British banks to conserve capital.