HSBC logs surging Q3 profits despite sliding revenues

AFP, LONDON: Global banking giant HSBC saw quarterly profit surge on the back of lower fines, beating expectations, but turnover slid amid Asian markets volatility, it said yesterday.
Pre-tax profit jumped 32 per cent to $6.1 billion (5.5 billion euros) in the third quarter or three months to the end of September, from $4.6 billion in the same period last year, HSBC said in a results statement.
Net profit or earnings after taxation rebounded 52 per cent to $5.2 billion.
“Our third quarter performance was resilient against a tough market backdrop,” said chief executive Stuart Gulliver, who unveiled a radical restructuring earlier this year to boost profitability and move on from recent scandals.
Revenues were adversely affected by fierce stock market sell-offs in Asia, and fell four per cent to $15.1 billion.
Gulliver noted that “the stock market correction in Asia” had weighed on HSBC’s Principal Retail Banking &
Wealth Management division, and on its Global Banking & Markets unit.    
HSBC had announced in June it would cut its global workforce by up to 50,000 and sell off its businesses in Brazil and Turkey to cut costs.
“Our cost-reduction measures are beginning to have an impact on our cost base,” Gulliver said, but added there was more to achieve.
The bank is also considering moving its headquarters from Britain but said there was a “considerable amount of work still to do” before a decision is made.
“Whilst the target for completion of the review was initially set as by the end of 2015, this is a self-imposed deadline that can be moved should the Board require further work to be performed,” the report said.
Chairman Douglas Flint, speaking to reporters in a conference call, added that the bank would try to make a decision by the end of the year.
“We take it very seriously and give it the appropriate amount of work,” Flint added.

 

HSBC logs surging Q3 profits despite sliding revenues

AFP, LONDON: Global banking giant HSBC saw quarterly profit surge on the back of lower fines, beating expectations, but turnover slid amid Asian markets volatility, it said yesterday. Pre-tax profit jumped 32 per cent to $6.1 billion (5.5 billion euros) in the third quarter or three months to the end of September, from $4.6 billion in the same period last year, HSBC said in a results statement. Net profit or earnings after taxation rebounded 52 per cent to $5.2 billion. Our third quarter performance was resilient against a tough market backdrop, said chief executive Stuart Gulliver, who unveiled a radical restructuring earlier this year to boost profitability and move on from recent scandals. Revenues were adversely affected by fierce stock market sell-offs in Asia, and fell four per cent to $15.1 billion. Gulliver noted that the stock market correction in Asia had weighed on HSBCs Principal Retail Banking Wealth Management division, and on its Global Banking Markets unit. HSBC had announced in June it would cut its global workforce by up to 50,000 and sell off its businesses in Brazil and Turkey to cut costs. Our cost-reduction measures are beginning to have an impact on our cost base, Gulliver said, but added there was more to achieve. The bank is also considering moving its headquarters from Britain but said there was a considerable amount of work still to do before a decision is made. Whilst the target for completion of the review was initially set as by the end of 2015, this is a self-imposed deadline that can be moved should the Board require further work to be performed, the report said. Chairman Douglas Flint, speaking to reporters in a conference call, added that the bank would try to make a decision by the end of the year. We take it very seriously and give it the appropriate amount of work, Flint added.