HSBC profits jumped in the third quarter thanks to higher interest rates and lower costs, the bank giant said Tuesday, but its share price slid as the results undershot investor expectations.
Net profit grew 45.5 per cent to US$7.1 billion in the three months to end-September compared with the same quarter a year earlier, the London-headquartered lender said in an earnings statement. HSBC is cutting jobs amid global restructuring at the Asia-focused bank under chief executive Georges Elhedery, who took over the helm two years ago.
“As we simplify HSBC, we are creating greater capacity to invest, grow and deliver strong returns for our shareholders,” Elhedery said Tuesday.
Pre-tax profit in the third quarter climbed 32 per cent to $9.6 billion, with group revenue increasing by nearly five per cent to $18.6 billion. However, Tuesday’s results left investors disappointed. Shares in London shed more than seven per cent to head losses on the top-tier FTSE 100 index, mirroring a fall in Hong Kong.
“Investors already know that higher interest rates are benefiting the banks so HSBC’s big increase in third-quarter profits was not enough to win them over,” said Russ Mould, investment director at AJ Bell.
AFP
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