HSBC announced on Monday information about a hike in its pre-tax profit. Europe’s largest bank said that there was a 448 percent year-on year jump in the three-months ended September.
The bank’s third-quarter pre-tax profit surged from $843 million to $4.62 billion in the same period a year ago. Adjusted revenue was 3 percent higher year-on year which stands at $13 billion.
“We maintained good momentum in the third quarter,” stated HSBC’s group chief executive, Stuart Gulliver, 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,” he added.
The bank had been expected to report an increase in third-quarter pre-tax profit and revenue by analysts. The expected surge is to be supported by the continuous cost-cutting effort and a low base from the previous year. HSBC is listed in Hong Kong, London, and New York.
“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, announced in an interview before the information release.
HSBC Hong Kong shares rose by 1.1 percent on the day by 11:59 HK/SIN which follows the release of its latest financial statement.
Small Businesses against HSBC
A potential legal challenge from small proprietorship is being faced by HSBC as the counterpart’s accounts had their accounts frozen. This follows as the largest bank listed in the UK tries to resolve the anti-money laundering issue.
According to close sources, hundreds of small companies which range from financial services boutiques to a fruit importer have been affected by this crackdown.
It was revealed earlier this year that HSBC was being investigated by the UK officials for failings around money-laundering controls. Although at the end of August, the situation became more exposed when a number of small companies started filing complaints with concerns that their accounts had been locked.
In the first half of this year, the bank exceeded estimate expectations and came out with a pre-tax profit of $10.24 billion and revenue of $26.1 billion, helping HSBC shares to climb all three listing.
The bank’s third quarter performance in 2016 reported a pre-tax profit of $843 million and adjusted revenue of $12.8 billion. In its Hong Kong branch, the bank has increased some 24 percent this year, helping the Hang Seng Index to beat many of its regional peers.
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