HSBC on sound footing

HSBC reported a 22% rise in half-year net profit to US$10.28 billion (about $11.5 billion), driven by lower costs and falling bad‑debt charges.

The article says HSBC's profit increase was mainly due to lower operating costs and a reduction in bad‑debt charges, which together boosted the bank's half‑year net profit.

Chief executive Stuart Gulliver commented and sounded a note of caution about China, noting the economy there is growing at a slower pace.

According to the article, management flagged the slower pace of China's economy as a cautionary point—this suggests growth headwinds in China are a potential risk for HSBC's future performance.

Analysts noted that HSBC's key metrics—profits, costs, impairments and return on capital—remain strong or appear to be improving.

Bad‑debt charges are provisions a bank makes for loans that may not be repaid; the article highlights that falling bad‑debt charges helped lift HSBC's half‑year profit, making them an important driver of bank profitability.

Return on capital refers to how effectively the bank is generating profits from the capital it employs; analysts cited in the article say HSBC’s return on capital is among the metrics that remain strong or are improving.

The update shows stronger half‑year profits supported by lower costs and fewer bad‑debt charges, while analysts view key metrics as healthy. At the same time, management warned about slower growth in China, which is a factor investors may want to monitor.