HSBC Holdings Third-Quarter Net Profit More Than Doubled
By Sherry Qin
HSBC Holdings PLC's third-quarter net profit more than doubled as the London-based banking giant continued to benefit from higher interest rates and sharply higher non-interest income.
The Asia-focused lender posted net profit of $5.62 billion for the three months to Sept. 30, up from $2.00 billion in the year-earlier period, it said Monday. HSBC's pretax profit, the bank's preferred profit measure, rose to $7.71 billion from $3.23 billion.
The bank's quarterly revenue rose 40% compared with the same period a year earlier to $16.2 billion. It attributed the growth to the higher interest rate environment, which supported growth in net interest income in all of their global businesses and higher non-interest income.
Its non-interest income rose 97% on year to $6.9 billion, primarily due to the sale of its retail banking operations in France.
The bank's net interest income, its main source of income, reached $9.25 billion, from $8.01 billion in the same period last year. Its net interest margin increased by 19 basis points to 1.70% from the year-earlier period.
"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," HSBC Chief Executive Noel Quinn said.
HSBC reiterated its guidance for 2023 net interest income to be above $35 billion, it said.
The board has approved a third interim dividend of $0.10 per share. It also intends to initiate a further share buyback of up to $3 billion after announcing three share buybacks in 2023 totaling up to $7 billion.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
October 30, 2023 00:43 ET (04:43 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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