A higher tax rate has forced HSBC USA to report a 3.5 per cent decline in net profit to US$114.91 million for the quarter to September 30.
The effective tax rate for the quarter rose to the United States' statutory level of 40 per cent from 33 per cent a year earlier because tax losses carried forward, which had reduced the level of taxes in the past, have been fully utilised.
However, pretax operating income grew a year-on-year 7.7 per cent to $190.76 million as the bank gained more customers for investments and insurance business as well as traditional banking products.
Net interest income increased 6.1 per cent from the third quarter last year to $305.5 million while other operating income advanced 5.9 per cent to $108.11 million.
Operating expenses also added 3.9 per cent to $200.35 million.
The loan-loss provision for the quarter increased by 12.5 per cent to $22.5 million.