HSBC has reported a profit before tax increase of $0.8bn to $8.5bn (£6.6bn) compared with third quarter 2023, up 9.9% year on year and well ahead of analyst forecasts.
The strong quarterly results were primarily driven by growth in wealth and personal banking, foreign Exchange, and investment banking,
Revenue increased by $0.8bn or 5% to $17.0bn compared with third quarter 2023.
Loans and advances to customers of $1.0tn were $30bn higher on a reported basis. This included favourable effects of foreign currency translation differences of $28bn, mainly in HSBC UK. Excluding foreign currency translation differences, customer lending balances increased by $2bn.
Commenting on the results HSBC group chief executive Georges Elhedery said: “We delivered another good quarter, which shows that our strategy is working. There was strong revenue growth and good performances in Wealth and Wholesale Transaction Banking”
He added: I’m committed to building on this strong platform for growth. HSBC is a highly connected, global business and the plans we set out last week aim to increase our leadership and market share in areas where we have competitive advantage, deliver best-in-class products and service excellence to our customers, and create a simpler, more dynamic, more agile organisation with clearer lines of accountability and faster decision-making.
“We will begin to implement these plans immediately and will share further details as part of a business update alongside our full-year results in February.”
Commenting on the latest quarter figures, AJ Bell head of financial analysis Danni Hewson said that the big shake-up of HSBC looked to be taking place from a position of some strength based on the company’s latest numbers – notably better than anticipated. “New CEO Georges Elhedery has wasted absolutely no time since taking the top job in September, already announcing plans to split HSBC geographically into eastern- and western-facing businesses.
“This reflects the difficult challenge HSBC faces of capitalising on the growth potential in Asian markets at a time of mounting geopolitical tensions between East and West.
Hewson added: “Elhedery has denied this will lead to a break-up of the business and suggested it is about simplification rather than any response to the current geopolitics, but that will do little to dampen speculation. Further information on the restructuring is promised in February and Elhedery can expect more questioning on these points then, particularly if the politics has moved on in the interim.”
