{"id":30886,"date":"2023-10-31T05:06:52","date_gmt":"2023-10-31T05:06:52","guid":{"rendered":"https:\/\/microloannexus.com\/news\/hsbcs-after-tax-profit-surges-over-235-year-on-year-announces-3-billion-share-buyback\/"},"modified":"2023-10-31T05:06:54","modified_gmt":"2023-10-31T05:06:54","slug":"hsbcs-after-tax-profit-surges-over-235-year-on-year-announces-3-billion-share-buyback","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=30886","title":{"rendered":"HSBC’s after-tax profit surges over 235% year-on-year, announces $3 billion share buyback"},"content":{"rendered":"
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HSBC’s profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 235% compared to the $2.66 billion in the same period last year.<\/p>\n

Europe largest bank by assets also saw profit before tax for the quarter rise by $4.5 billion to $7.7 billion, mainly due to a higher interest rate environment.<\/p>\n

However, the numbers missed expectations by economists, who were forecasting a third quarter profit after tax figure of $6.42 billion and profit before tax of $8.1 billion.<\/p>\n

HSBC said the increase was in part due to a $2.3 billion impairment in the third quarter of 2022 relating to the planned sale of its retail banking operations in France.<\/p>\n

Of that, $2.1 billion was reversed in the first quarter of 2023 as it became less certain that the transaction would be completed.<\/p>\n

“We now expect to reclassify these operations to held for sale in 4Q23, at which point the impairment would be reinstated,” it said.<\/p>\n

Revenue rose to $7.71 billion in the third quarter, up from $3.23 billion a year ago. HSBC also attributed this to the higher interest rate environment, saying that it has supported growth in net interest income in all of its global businesses.<\/p>\n

Net interest margin \u2014 a measure of lending profitability \u2014 stood at of 1.7%, up by 19 basis points year on year and beating estimates of 1.68%.<\/p>\n

However, NIM fell two basis points compared with the previous quarter. This reflected an increase in customers migrating their deposits to term products, particularly in Asia, HSBC said.<\/p>\n

For the nine months ended September, profit after tax stood at $24.33 billion, compared to $11.59 billion in the first nine months of 2022.<\/p>\n<\/div>\n

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