HSBC’s third-quarter profit beats expectations as Hong Kong and UK, its two biggest markets, face economic pressure

Name: HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change
Uploaded: 2022-10-25T04:36:34.000Z
Duration: 5 min 25 s
Description: HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change

Net profit fell to US$1.9 billion, compared with US$3.5 billion in last year’s third quarter; better than analysts’ expectations

Ewen Stevenson to step down as chief financial officer at end of the year, leave HSBC in April

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A pedestrian walks past an HSBC branch at Pedder Street, Central. Photo: Yik Yeung -man

Chad Brayin London

Published: 12:36pm, 25 Oct 2022Updated: 4:48pm, 25 Oct 2022

HSBC, the biggest of Hong Kong’s three currency-issuing banks, said it was encouraged by the effects of rising interest rates as it reported a better-than-expected profit despite a challenging economic environment in its two largest markets.

The bank, one of Europe’s largest by assets, also said Georges Elhedery, the investment banking co-head who recently returned from a six-month sabbatical, will become its new chief financial officer in January, setting him up as a potential successor to chief executive Noel Quinn, 61.

The lender’s net profit fell to US$1.9 billion in the three months ended September 30, from US$3.5 billion in the same quarter of 2021. However, that was better than the US$1.2 billion net profit expected by analysts, according to a consensus estimate compiled by the bank. On a pre-tax basis, HSBC reported a profit of US$3.1 billion.

“We maintained our strong momentum in the third quarter and delivered a good set of results,” Quinn said in a statement. “Our strategy produced good organic growth in all three global businesses, and net interest income increased on the back of rising interest rates.”

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HSBC’s break-up dilemma: why bank’s largest shareholder is pushing for change

The bank, one of Europe’s largest by assets, is based in London, but generates much of its revenue in Asia.