London-headquartered HSBC saw profits increase in the third quarter of 2024, despite lower interest income.
HSBC posted a pre-tax profit of $8.5 billion in the third quarter of 2024, according to the bank’s financial results, up nearly 10 percent year-on-year.
While net interest income fell $1.6 billion to $7.6 billion, revenue rose $800 million to $17 billion, reflecting higher customer activity in wealth and personal banking as well as in global banking and markets (GBM).
Operating expenses increased $200 million to $8.1 billion, primarily due to higher spend and investment in technology alongside the impact of inflation. Expected credit losses decreased $100 million to $1 billion, mainly reflecting lower charges in the mainland China real estate sector in commercial banking and GBM.
Post-Restructuring
On the bank’s future following the recent restructuring, newly appointed group CEO Georges Elhedery said that the latest changes would aim to «increase our leadership and market share in areas where we have competitive advantage, deliver best-in-class products and service excellence to our customers, and create a simpler, more dynamic, more agile organization with clearer lines of accountability and faster decision-making».
«We will begin to implement these plans immediately and will share further details as part of a business update alongside our full-year results in February,» he added.
In the first nine months of 2024, HSBC’s pre-tax profit grew around 2 percent to $30 billion. The bank’s board approved a third interim dividend of $0.10 per share. Following the completion of a $3 billion share buyback program on October 25, it will now initiate another round of buybacks of up to $3 billion which it expects to complete in the four-month period before the announcement of the 2024 full-year results.
