HSBC chief executive John Flint said the bank has a "contingency plan" in the event of the UK exiting the European Union without a deal on financial services.
In its results for the first six months of 2018, the company said it has a "robust contingency plan" in the event the UK leaves the EU and "passporting" of financial services ends.
Prime minister Theresa May has ruled out passporting, which allows a financial services firm based in one EU country to do business in another, but has been attempting to establish a new relationship with the EU on financial services based on enhanced equivalence.
The Financial Conduct Authority has previously stated it will allow firms to have temporary permissions in the event of a no deal Brexit.
The comments from HSBC come as the bank reported a 1 per cent drop in pre-tax profits. Its operating expenses rose at a faster pace than revenue, particularly due to investments in its Asian operations.
Mr Flint said the bank has been investing in the "opportunities" in China.
He said he was "cautiously optimistic" about global growth, and had seen little impact on the Asian operations from the ongoing dispute between President Trump and the government of China.
Mr Flint added that HSBC’s share of the UK mortgage market has grown.
Investors who focus on the dividend will note the company has a core tier one equity ratio of over 14 per cent. This matters because banks are required to keep about 12 per cent of their assets in cash or short duration bonds, which earn little interest, but assets over that amount can be paid out in dividends.
david.thorpe@ft.com
