Results round-up

Amid continuing turbulent economic conditions, HSBC Holdings' profits plunged in the second quarter to push interim result south of market expectations, though the bank sweetened the pill with news of a $2.5bn (£1.8bn) share buyback thanks to the sale of its Brazilian business.

In the six months to 30 June, profits before tax of $9.71bn were down 28.7% from the same period last year earlier and short of the City's expectations of around $10bn. Earnings per share were down a third to $0.32.

The sharper than forecast decline was due to second-quarter net profit dropping 40% to $2.61bn, with PBT plummeting 45% to $3.61bn.

Most of the profit decline in the global business came from lower transaction volumes as the 'uncertain times' led to customer restraint, plus a higher $2.4bn of loan impairments.

On the plus side, credit-related income remained solid and management made progress on cutting costs and reducing risk-weighted assets by $48bn.

HSBC, which has paid $0.20 in two dividends for the current year, said it remained committed to sustaining its annual ordinary dividend at current levels "for the foreseeable future".

First half profits at Rio Tinto fell to their lowest since 2004 as crumbling commodity prices hit home, but though the numbers were in bang in-line with analyst forecasts the mining behemoth said caution was still required for the medium-term.

In the six months to 30 June, the day after which saw new chief executive Jean Sebastien Jacques officially take the reins, underlying profit fell 47% to $1.56bn, which was exactly the same as the consensus forecast.

Pre-tax profits slumped 27% to $5.36bn, marginally falling short of expectations of $5.38bn.

The miner cut the interim dividend 58% to 45 cents a share, reflecting the board's new policy to link the payout to underlying earnings.

Having generated net cash from operating activities of $3.2bn, the dividend payout was worth around $0.8bn in total and, following the $1.9bn 2015 final dividend, saw net debt reduced 6% to $12.9bn during the half, which was much better than the market projections for a modest rise to $13.8bn.

Rio said the falls in commodity prices removed $1.9bn from its underlying earnings, which was only partially offset by a $241m gain from currency movements and a $410m boost from lower cash costs.