Singapore/London: HSBC Holdings posted an astonishing 74% jump in third-quarter profits as concerns about bad debt related to the pandemic eased, allowing it to announce a $2 billion share buyback.
HSBC, however, said it has increased its cost estimate for 2022 from $31 billion to $32 billion due to inflationary pressures. “While we maintain a cautious outlook on the external risk environment, we believe that recent quarters’ lows are behind us,” Chief Executive Neil Quinn said in a results statement on Monday.
Quinn, which was confirmed in 2020 in role as the start of the pandemic-induced economic crisis, is betting on Asia to drive growth, by taking global executives there and plowing billions in lucrative money business.
The bank posted a pretax profit of $5.4 billion for the September quarter, up from $3.1 billion a year ago and an average estimate of $3.78 billion by 14 analysts compiled by HSBC.
HSBC issued $700 million in cash set aside for pandemic-related bad loans, as opposed to the same time a year ago when it charged $800 million in anticipation of such soured loans .
The bank said that the economic situation has in fact improved while the loans have performed better than expected. The London-headquartered bank’s results come as rivals like Citigroup are riding the M&A boom, while offsetting weakness in the lending business.
HSBC’s investment banking business, however, saw earnings decline compared to the same period a year ago as its global lending business particularly softened.
It is the second major British lender to report strong results for the quarter, after Barclays doubled profits on Thursday on strong performance from its investment bank advisory business.
HSBC’s London-listed shares are up 15% so far this year, while Asia-focused rival Standard Chartered’s shares are up 5%, with Barclays up 35% and US-listed Citi up 16%. is of.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)