November 30, 2021

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HSBC Bank's third-quarter profit rose sharply

HSBC Bank’s third-quarter profit rose sharply

LONDON / HONG KONG, Oct 25 (TASR) – British bank HSBC, which focuses primarily on doing business in Asia, reported a surprise profit increase for the last third quarter of 2021, up 74%. This indicates that it is already recovering from the problems caused by the novel coronavirus pandemic and associated default concerns, as well as restructuring. So it plans to buy back $2 billion in stock.

HSBC’s pre-tax profit more than doubled year-on-year to $5.4 billion (4.64 billion euros) in the third quarter from $3.07 billion in the same period last year. This result exceeded analysts’ expectations of $3.78 billion.

HSBC set aside $700 million in the third quarter, which it set aside in the event of an increase in bad loans related to the pandemic, unlike last year, when it set aside $800 million for bad loans.

HSBC’s after-tax profit in the third quarter rose to $4.2 billion from $2.2 billion last year, and revenue rose to $12.012 billion from $11.93 billion.

HSBC makes 90% of its profits in Asia, with China and Hong Kong driving its growth.

In February, it announced a new strategy, in which it plans to step up efforts to gain a larger share in the Asian market. Given the low interest rates, it wants to increase fee income, especially from asset management in wealthy Asia.

Earlier this year, the bank sold its 90 US branches and completed a long-term sale to the unprofitable French retail division.

HSBC said cost estimates in 2022 had risen to $32 billion from $31 billion due to inflationary pressures.

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(1 EUR = 1,1630 USD)