HSBC's profits fell in the third quarter this year, due in large part to $2.4 billion of losses related to the planned sale of its retail banking operations in France.
HSBC posted $2.56 billion in profits after tax for the third quarter in 2022, according to a release of its quarterly results, down 40 percent from $4.24 billion in the same period last year. Year-to-date, the British lender registered $11.78 billion in net profit, down 7 percent year-on-year.
The primary driver of losses for the third quarter was a $2.4 billion impairment linked to the planned sale of HSBC’s retail banking business in France. The sale is part of the bank's broader strategy to pivot further towards Asia which already generates the majority of its global revenues and profits.
Net operating income fell 17 percent to $10.54 billion which included a net charge for expected credit losses compared to a net release last year. Operating expenses – including the impairment from the French retail exit – dipped 2 percent to $8 billion.
Regional Contributions
Asia was the top contributor to pre-tax profits in the third quarter at $3.51 billion, up 6 percent from the same period last year. In contrast, Europe contributed to a pre-tax loss of $1.57 billion, down from $1.14 billion in profits last year.
Other notable contributions include the Middle East and North Africa ($493 million, up 36 percent) and North America ($460 million, up 51 percent).
