Michelle ThompsonThe UK’s major bank, HSBC, has reported a significant increase in quarterly profits, totaling $7.7 billion (£6.35 billion), primarily due to the impact of elevated interest rates.
The bank’s pre-tax profit for the three months ending in September more than doubled compared to the same period a year ago.
Group Chief Executive Noel Quinn stated, “We have achieved strong financial performance for three consecutive quarters.”
However, it’s worth noting that this figure fell short of the $8.1 billion profit that analysts had anticipated.
The bank also unveiled plans to repurchase an additional $3 billion worth of its shares from investors and introduced a new dividend payout for shareholders. This move increases HSBC’s total share buybacks for the year to $7 billion and the total dividend payout to 30 cents per share.
“We are pleased to reward our shareholders once again,” Mr. Quinn noted.
HSBC acknowledged that it incurred a $500 million loss associated with China’s troubled property market.
“We are closely monitoring risks related to our investments in mainland China’s commercial real estate sector, and there remains a level of uncertainty in the future economic outlook, particularly in the UK,” the company stated in its results release.
HSBC, headquartered in London, primarily generates the majority of its income in Asia.
Last week, its Asia-focused competitor, Standard Chartered, reported an unexpected decline in its third-quarter profit due to nearly a $1 billion combined impact stemming from its exposure to China’s real estate and banking sectors.
