HSBC increased third-quarter pretax profit to 9.6 billion dollars, helped by the absence of legal provisions booked a year earlier. Revenue and net interest income also rose. The bank approved a further interim dividend and said it intended to launch another share buyback of up to 1 billion dollars after completing the previous programme.
HSBC reported higher pretax profit in the third quarter and announced another share buyback. The banking group published its quarterly results on 27 October.[1], [2]
Pretax profit reached 9.6 billion dollars, up 32 per cent from a year earlier. The comparison benefited from the absence of 1.4 billion dollars in legal provisions booked in the earlier period. Profit after tax rose 38 per cent to 7.6 billion dollars.[1]
Revenue increased by 0.8 billion dollars to 18.6 billion dollars. HSBC identified banking net interest income, corporate transactions and wealth customer activity as contributors. Net interest income rose 6 per cent to 9.3 billion dollars, while the net interest margin held at 1.57 per cent. Expected credit losses and other impairment charges fell 17 per cent to 0.8 billion dollars.[1]
The board approved a third interim dividend of 0.10 dollars per share. HSBC completed its previous 1 billion dollar repurchase in September and intends to start another programme of up to 1 billion dollars. Its common equity capital ratio stood at 13.9 per cent. Higher risk-weighted assets and the interim buyback contributed to that decline.[1]
