HSBC’s pre-tax profit jumps 32% to beat expectations

PanARMENIAN.Net - Pre-tax profit at Europe's biggest lender, HSBC, jumped 32% from a year ago in the third quarter to beat expectations, according to BBC News.

Its pre-tax profit was $6.1bn from $4.6bn in the same period a year earlier and above forecasts of $5.2bn. Lower costs from regulatory fines contributed to the higher profit.

The bank announced thousands of job cuts in June, along with asset sales as part of cost cutting measures to improve returns to shareholders.

It has been speeding up the sale of loss-making businesses and sold its operations in Brazil in August.

"Our cost-reduction measures are beginning to have an impact on our cost base," chief executive Stuart Gulliver said in the bank's earnings release on Monday, Nov. 2.

"There is more to achieve on costs and we expect the measures we have already taken to have a further impact in the fourth quarter."

HSBC is also expected to decide on whether to move its headquarters out of the UK by the end of this year at the earliest. Hong Kong is seen as a likely alternative.

Despite the jump in profit, the bank's revenue was down 4% to $14bn on the stock market correction in Asia, which affected its retail banking and wealth management business.

However, Gulliver said its third quarter performance was "resilient" against tough market conditions.

In reaction to the results, the bank's Hong Kong listed shares were down 0.7%.