HSBC performs worse than expected despite a 180% increase in net profit in the third quarter

2023-10-30 15:30:08

HSBC also announced three quarterly dividends this year totaling 30 cents per share. LIM HUEY TENG / REUTERS

Results at Europe’s largest bank fell short of analysts’ expectations due to higher costs.

The rise in rates also makes people happy. HSBC Holdings on Monday reported a 240% rise in third-quarter pre-tax profit, as rising interest rates boosted profitability, although it missed market estimates. Europe’s largest bank, with a market value of $118.6 billion, reported pre-tax profit of $7.7 billion for the July-September quarter, up from $3.2 billion a year earlier early, which is lower than the average estimate of $8.1 billion expected. HSBC indicated that its full-year costs were likely to increase by 4%, compared to a previous target of +3%.

The British bank HSBC announced on Monday net profit up 180% in the third quarter year-on-year to $5.6 billion thanks to “the positive impact of high interest rates». «We have had three consecutive quarters of strong financial performance», Underlined the group’s general manager Noel Quinn, quoted in the press release. The strong increase over one year is partly explained by a depreciation that occurred at the same period last year, linked to the planned sale of retail banking activities in France. This project was weakened for a while but has recently been relaunched.

The bank listed in London, but which carries out a significant part of its activity in Asia, published a turnover up 40% in the third quarter to 16.2 billion dollars. The rise in ratessupported net interest rate revenue growth across our global businesses, while non-interest rate revenue increased» also, noted the bank. “There was good broad-based growth across all businesses and geographies, supported by the interest rate environment», added Noel Quinn.

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The bank also announced a new $3 billion share buyback program, following two similar programs this year. HSBC also announced three quarterly dividends this year totaling 30 cents per share. “This highlights the substantial distribution capacity we have, even as we continue to invest in growth», Noel estimated. Quinn.