The Retail Banking and Wealth Management arm of HSBC has posted an adjusted pre-tax profit of $4.44bn for the first half of 2019.

This is a 24% surge from the last year figure of $3.59bn.

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Adjusted revenue at the division increased by 12% to $11.92bn from $10.67bn.

Wealth management revenue of $3.61bn was 10% higher than the previous year. This was said to be due to higher life insurance manufacturing revenue driven by favourable market conditions.

The unit’s adjusted operating expenses rose 6% year-on-year to $7bn. The rise was due to higher staff expenses and inflation mainly in Asia, technology investments, as well as initiatives to strengthen the Asia wealth management unit, HSBC noted.

HSBC Private Banking

HSBC Global Private Banking unit’s adjusted pre-tax profit increased 5% to $196m from $187m.

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The bank attributed the rise to a reduction in adjusted operating expenses and adjusted revenue growth, particularly in Asia.

The division’s adjusted revenue rose 2% to $924m on a year-on-year basis. The growth was said to be due to its Asia and Monaco businesses.

The wind-down of its Monaco business contributed to lower adjusted operating expenses, which were 2% lower than a year ago. Savings in the US, and decrease in compliance costs also helped.

HSBC Group highlights

Overall, the banking group reported a pre-tax profit of $9.94bn in the first six months of 2019, up 18% from $8.41bn a year earlier.

Adjusted pre-tax profit at the group increased 7% to $12.51bn from $11.72bn.

The group’s adjusted revenue increased 8% to $28.49bn from $26.38bn.

HSBC CEO departs

Meanwhile, the banking group’s CEO John Flint has stepped down after holding the role since last February.

Flint has also resigned as a director of HSBC.

HSBC head of global commercial banking unit Noel Quinn replaces Flint on an interim basis.