HSBC Holdings earnings results: ‘a much healthier capital base’ HSBC Holdings, one of the world's largest banking and financial services organizations, recently announced its earnings results for the first half of 2021. The bank reported a pre-tax profit of $10.8 billion, up from $4.3 billion in the same period last year. This is a significant improvement and reflects the bank's efforts to recover from the impact of the COVID-19 pandemic. One of the key highlights of the earnings report was the bank's capital position. HSBC's common equity tier 1 (CET1) ratio, a measure of a bank's financial strength, increased to 15.9% from 15.2% at the end of 2020. This is a positive sign for investors as it indicates that the bank has a much healthier capital base and is better equipped to weather any future economic shocks. HSBC's CEO, Noel Quinn, said in a statement, Our first-half performance was very encouraging with all business lines profitable and a significant increase in revenue compared to the same period last year. We also made good progress in executing our strategy, including the announcement of our pivot to Asia and the sale of our US retail banking business. The bank's pivot to Asia is a strategic move aimed at capitalizing on the region's growing wealth and economic power. HSBC plans to invest $6 billion in Asia over the next five years, with a focus on expanding its wealth management and insurance businesses. This move is expected to help the bank achieve its goal of becoming a leading wealth manager in the region. HSBC's sale of its US retail banking business is another strategic move aimed at streamlining its operations and focusing on its core businesses. The bank sold the business to Citizens Financial Group for $3.2 billion, which will help it free up capital and reduce costs. Overall, HSBC's earnings results are a positive sign for the bank and its investors. The bank's improved capital position and strategic moves to pivot to Asia and streamline its operations are expected to drive growth and profitability in the coming years. As the global economy continues to recover from the impact of the COVID-19 pandemic, HSBC is well-positioned to capitalize on new opportunities and deliver value to its shareholders.