HSBC books 10% profit rise for third quarter, launches $3 bln buyback (updated)

Digital China Holdings

29/10/2024 04:26

(Adds results details from paragraph 5)
    By Selena  Li and Lawrence White
       HONG KONG/LONDON, Oct 29 (Reuters) - HSBC Holdings
 HSBA.L  posted a 10% rise in third-quarter profit on Tuesday,
beating analyst estimates, as its wealth and wholesale banking
benefited from slower-than-expected rate cuts while it embarks
on one of the largest overhauls in its history.
    Europe's largest bank posted pretax profit of $8.5 billion
for the July-to-September period versus $7.7 billion a year
earlier. The result compared with a $7.6 billion mean average of
broker estimates compiled by HSBC.
    The London-headquartered, Asia-focused bank also announced
an additional share buyback of up to $3 billion, on top of a $6
billion buyback programme announced earlier this year.
    The lender unveiled a roadmap for its sweeping restructuring
under new CEO Georges Elhedery designed to control costs and
improve efficiency. HSBC announced last week that it will merge
some operations and split its geographic footprint into East and
West, under a new leadership structure.
    "We will begin to implement these plans immediately,"
Elhedery said in an earnings statement, but further details will
be disclosed in February next year. 
    HSBC kept its 2024 and 2025 near-term return on tangible
equity goal - a performance target - at mid-teens for two years
but said in the statement that the "the outlook for interest
rates has changed, and been volatile".
    The bank said it will pay an interim dividend of 10 cents a
share, its third payout in 2024 following payments worth 41
cents announced earlier this year. 

 (Reporting by Selena Li in Hong Kong and Lawrence White in
London; Editing by Himani Sarkar)
 ((Selena.Li@thomsonreuters.com; +852 39525868;))