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Highlights:
- HSBC reports Q3 pre-tax profit of $8.5 billion, surpassing expectations by nearly $1 billion.
- Revenue rises 5% to $17 billion, fueled by Wealth business gains and Global Markets activity.
- Announces $3 billion buyback, with total shareholder distributions reaching $18.4 billion for 2024.
HSBC Holdings PLC (LSE:HSBA), Europe’s largest banking group, has reported better-than-expected financial results for the third quarter of 2024, achieving a pre-tax profit of $8.5 billion. This figure exceeded analysts’ forecasts of $7.6 billion and represents a more than 6% rise compared to the same period last year. The strong performance was supported by a 5% revenue growth, which saw the bank reaching $17 billion for the quarter. Increased customer engagement in HSBC’s Wealth segment, as well as heightened trading in its Global Markets division due to volatile financial conditions, were key drivers of the revenue boost.
In tandem with the profit announcement, HSBC revealed a $3 billion share buyback program, further reinforcing its commitment to capital returns. This, alongside a third interim dividend of $0.10 per share, contributes to a substantial $4.8 billion in shareholder distributions for the quarter. So far in 2024, HSBC has announced a total of $18.4 billion in shareholder distributions, highlighting its strong financial position and focus on delivering returns.
Newly appointed CEO Georges Elhedery, who took the helm last week, commented on the results, stating that the quarter demonstrated the effectiveness of HSBC’s current strategy. He outlined the bank’s plan to implement structural changes designed to streamline operations and enhance profitability, with immediate steps toward this transformation already underway. Elhedery noted that these changes aim to fortify HSBC’s position as a leading global banking institution.
The structural overhaul, announced last week, will begin immediately, with further details set for release in February when HSBC presents its full-year results. This strategy aligns with HSBC’s goals of strengthening its core businesses and adapting its operations to the evolving economic environment. The Q3 performance and the capital distributions underscore the bank’s resilience and its commitment to providing consistent returns.
HSBC’s Q3 results reinforce the bank’s position as a robust player in the global financial industry, showcasing its capacity to adapt and thrive amid changing market dynamics and economic uncertainties. The ongoing strategy adjustments and commitment to shareholder returns indicate that HSBC is well-positioned to pursue long-term growth and value creation.
