HSBC posts higher 3Q profit as Asian pivot pays off
HONG KONG (AP) — HSBC said Monday that its profit rose in the third quarter as a sweeping corporate overhaul aimed at winning more business in Asia paid off.
The London-based global bank said pretax profit rose to $4.6 billion in the July-September period, a more than fivefold increase from $843 million a year ago.
It reported net income of nearly $3 billion, swinging from a loss of $617 million the previous year as revenue climbed 38 percent to $13.2 billion.
HSBC also said it has carried out 71 percent of a $2 billion share buyback announced three months ago and plans to complete it by the year’s end.
Chief Executive Stuart Gulliver said the bank “maintained good momentum” in the latest quarter, with higher revenue in all three of its main global businesses.
“Our pivot to Asia is driving higher returns and lending growth, particularly in Hong Kong and the Pearl River Delta,” said Gulliver, referring to the affluent industrialized region in southern China’s Guangdong province.
HSBC is in the midst of carrying out a restructuring with the goal of increasing profitability. The plan includes bringing in new leadership, shedding thousands of workers and shrinking its global footprint so it can focus even more on Asia’s emerging markets.
This month, new Chairman Mark Tucker, the first outsider to hold the job, named veteran banker and company insider John Flint to replace Gulliver as chief executive in February.
HSBC shares in Hong Kong closed 0.3 percent lower, in line with the market’s broader trend.