HSBC, Europe’s largest bank, on Tuesday reported third-quarter pretax profit largely in line with analyst estimates respected by the bank, and announced a share buyback of up to $1 billion by the end of this year.
HSBC’s revenue rose to $18.6 billion from $17.8 billion in the same period last year, while net banking interest income rose 6% as the bank records higher fee income from its corporate and institutional banking and wealth management businesses.
Here are HSBC’s third-quarter results compared to the bank’s consensus estimates.
- Profit before taxes: $9.63 billion versus $9.69 billion expected
- Revenue: $18.6 billion versus $18.93 billion expected
The bank’s third-quarter pre-tax profit rose 32% from a year earlier to $9.6 billion, also reflecting the absence of $1.4 billion in legal provisions recorded during the same period last year. Higher revenue and lower credit losses also supported earnings.
HSBC approved a third interim split of 10 cents per share.
The bank’s net interest income reached $9.3 billion in the third quarter, supported by deposit growth and higher returns on reinvestments in the bank’s structural portfolio.
At the same time, operating expenses fell 12% year-on-year to $8.8 billion, largely due to the non-recurrence of legal provisions recorded a year earlier. Excluding notable items, spending increased amid higher inflation and technology spending.
The results come as HSBC is reportedly considering major job cuts in its UK wealth management business, as part of a wider drive to embrace artificial intelligence.
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