HSBC’s pre-tax profit represented a 10% rise from the $7.71 billion posted a year ago. Profit after tax came in at $6.7 billion, $500 million higher than the third quarter of 2023.
Quarterly revenue grew 5% to $17 billion, compared to the $16.2 billion that was reported a year ago.
The bank’s fresh $3 billion share buyback brings the total amount announced this year to $9 billion-$3 billion was announced in the first quarter and another $3 billion in the second quarter. The company added that its board has also approved a third interim dividend of $0.1 per share.
Net interest margin, a measure of lending profitability, dropped to 1.5% from 1.7% a year ago. Basic earnings per share for the quarter came in at 34 cents, higher than the 29 cents of the same period of last year.
HSBC has benefitted from higher interest rates in recent years. But with that era ending, it was feared that banks could face lower profitability with falling rates.
The earnings release comes a week after the bank unveiled plans to restructure into four business units, dividing its operations into an “Eastern markets” branch and a “Western markets” division, amid a major overhaul that saw the appointment of its first female finance chief.
HSBC had also vowed to streamline its businesses to “reduce the duplication of processes and decision making.”
