HSBC continued to invest in digitalizing its retail and transaction banking businesses in the first half of 2024. 

“The steps we’ve taken to change our retail business model and our continued investment in people and digitization have made wealth a key driver of revenue growth,” Chief Executive Noel Quinn said during today’s H1 earnings call.  

During the first half of the year, wealth revenue in the bank’s retail business increased 12% year over year to $4.3 billion, Quinn said, attributing the growth to digital efforts. 

Additionally, the transaction banking business saw growth in payments, he said. “This is a result of the investment we made to grow and digitize that business.”  

BIGGER PICTURE: The bank is able to invest in tech because of the cost savings, Quinn said, adding that since 2019 the bank has posted $5.6 billion in annual savings. 

The bank joins peers Deutsche Bank, Lloyds and Santander in prioritizing cost savings as tech investment remains top of mind. 

BY THE NUMBERS: In the first half, HSBC reported: 

• Operating expenses increased 3% YoY to $8.1 billion; and 

• Revenue increased 1% YoY to $37.3 billion. 

NOTEWORTHY: On July 17, the bank appointed Georges Elhedery as its group CEO effective Sept. 2, according to a bank release. 

Elhedery joined HSBC in 2005 and became group chief financial officer in January 2023, according to the release. Quinn will step down effective Sept. 2. 

“I’m delighted to be handing the stewardship of the bank over to him,” Quinn said on today’s earnings call.  

MARKET REACTION: HSBC shares were trading at $45.38 up 4.24% at 3:08 p.m. ET Wednesday. HSBC has a market capitalization of $167.9 billion. 

[stock_market_widget type=”inline” template=”generic” assets=”HSBC” markup=”{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}” realtime=”true” api=”yahoo-finance”].

Early-bird registration is now available for the inaugural Bank Automation Summit Europe in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here.