HSBC reported a slight decline of 0.4 per cent in first-half profit but still beat analyst estimates, as its businesses benefited from higher interest rates worldwide while robust growth in its wealth business boosted revenue.

Europe’s largest bank posted pretax profit of US$21.6 billion for the first six months this year versus US$21.7 billion a year earlier.

The result compared with the US$20.5 billion average of broker estimates compiled by HSBC.

“We are confident that we have the right strategy and model to grow revenue, even in a lower interest rate environment,” chief executive Noel Quinn said in a press release.

The bank gave new guidance of a mid-teens return on average tangible equity – a performance target – in 2025. Previously it only aimed for mid-teens return for 2024.