HSBC reported a 3% rise in underlying third-quarter revenue to $17.9bn (which ignores currency and one-off items). Growth was driven by banking net interest income and strong wealth fees.
Underlying profit before tax rose 3% to $9.1bn. Not included in that figure was a $1.4bn legal provision, including $1.1bn related to the Madoff case. Credit impairments were broadly flat at $1.0bn.
The CET1 ratio, a key measure of financial resilience, was 14.5% (14.0–14.5% target range). A quarterly dividend of $0.10 per share was announced, following the completion of a $3bn buyback.
Full-year guidance was upgraded, with banking net interest income now expected to reach $43bn or better (previously $42bn ).
The shares rose 2.8% i n early trading.
Our view
HL view to follow.
HSBC key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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