HSBC says pre-tax profit more than doubled in third quarter

HONG KONG: Banking giant HSBC said on Monday that pre-tax profit in the third quarter more than doubled to $7.7 billion, reflecting the “positive impact of a higher interest rate environment”.

The on-year spike was partly down to an impairment in the same period last year over the planned sale of the firm’s retail banking operations in France, which has since stalled, it said.

The London-listed lender reported third-quarter revenue grew 40 percent to $16.2 billion as higher rates “supported growth in net interest income in all of our global businesses, and non-interest income increased”.

“We have had three consecutive quarters of strong financial performance and are on track to achieve our mid-teens return on tangible equity target for 2023,” group chief executive Noel Quinn said in an earnings release statement.

“There was good broad-based growth across all businesses and geographies, supported by the interest rate environment,” he added.

The bank also announced a new $3 billion share buyback programme, following two similar initiatives this year.

HSBC has also announced three quarterly dividends totalling $0.30 per share.

“This underlines the substantial distribution capacity that we have, even as we continue to invest in growth,” Quinn said.