HSBC building in the Canary Wharf district of London, U.K.
Leon Neal | AFP | Getty Images
HSBC said Monday its third-quarter reported pre-tax profit jumped 75.8% from a year to $5.4 billion in the third quarter — handily beating expectations.
The bank said it released cash that was previously set aside in anticipation of bad loans, and that contributed to the improved earnings. HSBC added that all regions it operates in were profitable in the quarter.
“We believe that the lows of recent quarters are behind us,” Noel Quinn, HSBC’s group chief executive, said in a statement accompanying the earnings release.
Meanwhile, reported revenue for the third quarter was $12 billion — 0.7% higher than a year ago and missing analyst estimates.
Analysts had expected the Asia-focused bank to report a 22.8% on-year jump in reported pre-tax profit to $3.776 billion, according to estimates compiled by HSBC. Revenue was expected to grow by 3.1% on year to $12.3 billion, according to the estimates.
HSBC did not announce any dividends for the third quarter. But the bank said it plans to start a $2 billion share buyback “shortly.”
Investors had been looking forward to the bank’s announcement on dividends and plans for share buybacks, said Jackson Wong, asset management director at Amber Hill Capital.
“A lot of things are going on in the markets right now that they would have to show that they have confidence in the future,” Wong told CNBC’s “Street Signs Asia” ahead of HSBC’s earning release.
HSBC shares in Hong Kong traded 0.5% higher before the lunch break Monday.
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