HSBC (HSBA.L) today reported Q3 results showing a 2% increase in pretax profit for the period, however underlying Q3 profit fell 12% to $4.4Bln down $595Million from the same period last year.
The company blames “net movements in significant items” for the fall. HSBC has overall this year reported a fall of 9% in the first nine months of the year. Total pretax profit so far has been $16.9Bln compared to $18.6Bln for the last trading year.
The Commercial Banking side continued to grow, notably in HSBCs home markets of Hong Kong and the UK. Strong performance in Global Banking and Markets was driven by Markets as Foreign Exchange and Equities both benefited from higher client activity.
Earnings per ordinary share and dividends per ordinary share (in respect of the period) for 9M14 were US$0.67 and US$0.30, respectively, compared with US$0.71 and US$0.30 for 9M13. The third interim dividend was US$0.10 per ordinary share.
Group Chief Executive, Stuart Gulliver, commenting said: “The third quarter was a period of continued progress. Excluding significant items, we increased underlying profit before tax in all of our global businesses and maintained a strong balance sheet and a robust capital position.
Revenue continued to grow in Commercial Banking, dominated by growth in our home markets of Hong Kong and the United Kingdom. Global Banking and Markets contributed a strong revenue performance with its differentiated business model. Global Private Banking has attracted net new money of US$10 billion in areas targeted for growth since the start of the year. The remodelling of Retail Banking and Wealth Management and Global Private Banking remains ongoing.
Loan impairment charges are lower reflecting the current economic environment and the beneficial changes to our portfolio since 2011.
We continued to build essential infrastructure to deliver against our risk and compliance commitments and fulfil our regulatory obligations in the third quarter. Cost inflation in a number of our markets and a number of significant items also contributed additional costs. As a consequence, operating expenses are now higher than before. We are committed to achieving additional sustainable savings by further streamlining our processes and procedures.
Despite the rising regulatory expectations, I am confident that our business model remains sustainable and that we can deliver further value for our shareholders while meeting our obligations and protecting the future of HSBC.”
HSBC (HSBA.L) is trading slightly lower is early trading at 637.70p (-0.34%)
HSBC (HSBA.L) today reported Q3 results showing a 2% increase in pretax profit for the period, however underlying Q3 profit fell 12% to $4.4Bln down $595Million from the same period last year.
The company blames “net movements in significant items” for the fall. HSBC has overall this year reported a fall of 9% in the first nine months of the year. Total pretax profit so far has been $16.9Bln compared to $18.6Bln for the last trading year.
The Commercial Banking side continued to grow, notably in HSBCs home markets of Hong Kong and the UK. Strong performance in Global Banking and Markets was driven by Markets as Foreign Exchange and Equities both benefited from higher client activity.
Earnings per ordinary share and dividends per ordinary share (in respect of the period) for 9M14 were US$0.67 and US$0.30, respectively, compared with US$0.71 and US$0.30 for 9M13. The third interim dividend was US$0.10 per ordinary share.
Group Chief Executive, Stuart Gulliver, commenting said:
“The third quarter was a period of continued progress. Excluding significant items, we increased underlying profit before tax in all of our global businesses and maintained a strong balance sheet and a robust capital position.
Revenue continued to grow in Commercial Banking, dominated by growth in our home markets of Hong Kong and the United Kingdom. Global Banking and Markets contributed a strong revenue performance with its differentiated business model. Global Private Banking has attracted net new money of US$10 billion in areas targeted for growth since the start of the year. The remodelling of Retail Banking and Wealth Management and Global Private Banking remains ongoing.
Loan impairment charges are lower reflecting the current economic environment and the beneficial changes to our portfolio since 2011.
We continued to build essential infrastructure to deliver against our risk and compliance commitments and fulfil our regulatory obligations in the third quarter. Cost inflation in a number of our markets and a number of significant items also contributed additional costs. As a consequence, operating expenses are now higher than before. We are committed to achieving additional sustainable savings by further streamlining our processes and procedures.
Despite the rising regulatory expectations, I am confident that our business model remains sustainable and that we can deliver further value for our shareholders while meeting our obligations and protecting the future of HSBC.”
HSBC (HSBA.L) is trading slightly lower is early trading at 637.70p (-0.34%)
Related Posts: