HSBC’s Q3 Pre-Tax Profit Soars to $7.7B with Rising Interest Income
HSBC, a big European bank, made a lot more money in the third quarter because interest rates went up globally. They plan to buy back some of their shares, up to $3 billion worth. In the three months until the end of September, they earned $7.7 billion before tax, which is more than double what they earned in the same period last year. Their revenue also went up by 40%, reaching $16.2 billion, thanks to higher interest rates and other income.
HSBC’s interest income increased by 16% in the third quarter, reaching $9.2 billion. The interest rates globally went up, helping the bank make more money. They also attracted more customers in their wealth business, bringing in $34 billion in new investments and increasing their wealth balances by 12%.
HSBC’s costs went up a bit, about 2%, mainly due to higher tech costs and rising inflation. But they also saved some money from an earlier cost-saving program. They made a charge of $1.1 billion for expected credit losses, which is roughly the same as last year. This includes a $500 million charge related to commercial property in China.
In China, the economy isn’t growing as fast, and there are issues with property, which is causing problems for many companies. HSBC is watching this closely, and there’s some uncertainty in the UK as well.
HSBC plans to buy back some of its shares and has already paid dividends to its shareholders this year. They say they can do this because they have a lot of money, even as they keep growing.
They aim to keep their performance strong in the coming years and expect to make more money through interest income in 2023.
