Europe's largest bank just reported a 448 percent jump in pre-tax profit

HSBC, Europe’s largest bank, said Monday its pre-tax profit jumped 448 percent year-on-year in the three-months ended September.

The bank’s third-quarter pre-tax profit was $ 4.62 billion, surging from $ 843 million in the same period a year ago. Adjusted revenue was 3 percent higher year-on-year at $ 13 billion.

“We maintained good momentum in the third quarter,” Stuart Gulliver, HSBC’s group chief executive, said in a statement. “Our international network continued to deliver strong growth in the third quarter, and our pivot to Asia is driving higher returns and lending growth, particularly in Hong Kong.”

HSBC shares in Hong Kong were up 1.1 percent on the day by 11:59 HK/SIN following the release of its latest financial statement.

Analysts had expected the bank, which is listed in Hong Kong, London and New York, to report an increase in third-quarter pre-tax profit and revenue, helped by the continuous cost-cutting effort and a low base from a year ago.

“I think on a year-on-year basis there will be multiple jumps on profit because of the low base last year, which was, in turn, caused by a one-off expense last year. But on a quarterly basis, the third-quarter profit will probably be lower than the second quarter due to decline in income and some jump in the provisions for bad loans,” Ivan Li, research director at DBS Vickers Hong Kong, told CNBC before the release.

The bank’s third quarter 2016 reported pre-tax profit came in at $ 843 million and adjusted revenue was at $ 12.8 billion. In the first half of this year, the bank beat estimates with a pre-tax profit of $ 10.24 billion and revenue of $ 26.1 billion — a performance that helped HSBC shares climb in all three listings.

In Hong Kong, the bank has risen some 24 percent this year, helping the Hang Seng Index to outperform many of its regional peers.

Let’s block ads! (Why?)

Top News & Analysis