HSBC reports 10% increase in profits for third quarter and initiates $3 billion share repurchase program according to Reuters

HSBC Holdings reported a 10% increase in third-quarter profit, surpassing analyst expectations. The bank’s wealth and wholesale banking divisions benefited from slower rate cuts, while undergoing a major overhaul.

Europe’s largest bank recorded a pretax profit of $8.5 billion for the July-to-September period, up from $7.7 billion a year earlier. This result exceeded the $7.6 billion average estimate from brokers compiled by HSBC.

Additionally, the London-based bank, which focuses on Asia, announced a new share buyback of up to $3 billion, in addition to the $6 billion buyback program announced earlier this year.

Under the leadership of new CEO Georges Elhedery, HSBC unveiled a restructuring plan aimed at cost control and efficiency improvement. The bank recently announced the merger of some operations and the division of its geographic footprint into East and West.

“We will start implementing these plans immediately,” Elhedery stated in an earnings release, with more details to be revealed in February next year.

HSBC maintained its near-term return on tangible equity target of mid-teens for 2024 and 2025, but acknowledged the changing and volatile outlook for interest rates.

The bank declared an interim dividend of 10 cents per share, marking its third payout in 2024 after distributing 41 cents earlier this year.

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