The HSBC Holdings Plc building in Canada Square in the Canary Wharf financial district on August 15, 2023 in London, England.
Mike Kemp In Picture | Getty Images
Driven by strong revenue growth, Europe’s largest lender HSBC Tuesday reported third quarter earnings that beat analysts’ expectations as it embarks on a major restructuring that will see it split into four divisions.
Here are HSBC’s results compared to LSEG SmartEstimate, weighted against consistently more accurate analysts’ forecasts:
- Pre-tax profit: $8.50 billion vs. $8.05 billion
- result: $17.00 billion vs $16.22 billion
HSBC’s pre-tax profit showed a 10% increase compared to the $7.71 billion it posted a year ago.
The company’s quarterly revenue increased by 5% to $ 17 billion from the $ 16.2 billion that was reported last year, while after-tax profits gained $ 500 million from last year to $ 6.7 billion.
The bank announced a $3 billion share buyback, bringing the total amount announced this year to $9 billion.
The board has approved a third interim dividend of $0.1 per share and will begin repurchasing up to $3 billion in shares, which will be completed in the four months before reporting full-year earnings.
The bank last week announced plans to restructure into four business units: Hong Kong, UK, international wealth and core banking, and corporate and institutional banking, amid a major overhaul that saw the appointment of its first female finance chief.
HSBC also promised to streamline its business to “reduce duplication of processes and decision-making.” The new structure will be implemented in January, and “will result in a simpler, more dynamic and agile organization,” said HSBC boss Georges Elhedery.
This is a news story. Please check back later for updates.
