HSBC reported a 32 per cent jump in pre-tax profits to $9.6bn for the third quarter, driven by cost reductions under CEO Georges Elhedery. Revenues grew 5 per cent to $18.6bn, though both figures slightly missed analyst expectations. Operating expenses fell to $8.8bn from $10.1bn a year ago.
Despite the strong performance, HSBC shares dropped 5 per cent in Hong Kong, extending a monthly decline to 14 per cent amid scrutiny from Beijing over overseas Chinese wealth. The bank announced a new $1bn share buyback and a third interim dividend of $0.10 per share. Return on tangible equity rose to 17.7 per cent, up from 12.3 per cent last year.
Hong Kong saw $21bn in deposit growth, while UK balances remained flat. HSBC also set aside $1.4bn for expected credit losses in its Hong Kong commercial real estate portfolio due to ongoing property price pressures. The bank is planning sweeping cuts to its UK wealth management business and leveraging AI for client advisory.
Source: Financial Times Companies · Summarized by HeadlinesBriefing