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FTSE 100 financial giant HSBC (LON:HSBA) has reported a 15.8% improvement in pre-tax profits for the six months ended 30th June as reported revenues increased by 7.6%.
However, the company warned that the macroeconomic outlook had shifted with US interest rates now expected to drop and Brexit casting a cloud over plans for the UK and European markets. The firm also announced the shock departure of Chief Executive Officer John Flint after just 18 months in the role, saying the bank needed a change at the top to address “a challenging global environment”.
As a consequence of the developments in the US, the firm believes that it will not meet its 2020 RoTE target of 6% in that market.
Shares in HSBC dropped by 2.43% to 630.40p (as of 14:50 BST).