HSBC Holdings PLC Reports Strong Q3 Profit

Asia-focused lender HSBC Holdings PLC (LON:HSBA) reported a stronger-than-expected third-quarter profit on Tuesday, driven by its robust wealth management unit and successful cost-cutting measures.

The bank announced a $3 billion buyback, continuing its trend of returning capital to shareholders, following a similar buyback in the second quarter.

HSBC’s profit before tax rose to $8.48 billion, up from $7.6 billion in the same period last year, exceeding Bloomberg's estimates.

This increase was primarily due to a 5% revenue growth in wealth management, bringing Q3 revenue to $17 billion, despite a drop in net interest income from $9.2 billion to $7.6 billion.

The bank declared a third interim dividend of $0.10 per share.

Earlier in October, HSBC announced a split of its east and west operations as part of ongoing restructuring, which has involved the disposal of several regional units.

This initiative is part of a broader revamp by CEO Georges Elhedery, with more details expected when annual earnings are reported in February.

HSBC has maintained its annual guidance, targeting a mid-teens return on average tangible equity for 2024 and 2025. Net interest income is projected at $43 billion in 2024, with a targeted cost growth of 5% for the year.