HSBC Holdings has reported a 10% year-on-year increase in pre-tax profit for the third quarter, reaching $8.5 billion, driven by revenue growth in wealth management and its global banking and markets division.
This follows a recent announcement of an extensive organisational restructuring under CEO Georges Elhedery, who took the helm in September.
“We delivered another good quarter, which shows that our strategy is working,” Elhedery stated, reinforcing the bank’s confidence in its ongoing transformation efforts.
Alongside its earnings announcement, HSBC confirmed it would raise this year’s total shareholder distribution to $18.4 billion and initiate a fresh share buyback programme of up to $3 billion.
Revenue for the quarter rose by 5% on-year to $17 billion, while operating expenses increased by 2%, totalling $8.1 billion. The bank also reiterated plans to complete the sale of its Argentina operations by year-end, a move first announced in April.
In a restructuring that seeks to streamline its global footprint, HSBC will reorganise into four divisions next year: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking. This shift includes consolidating its Asia-Pacific and Middle East businesses while aligning European and US operations.
Furthering its diversity milestones, HSBC appointed Chief Risk Officer Pam Kaur as Chief Financial Officer, marking the first time in its 160-year history a woman will occupy this role, effective January 1.
HSBC generates the bulk of its revenue in Asia, where it has been enhancing its wealth management services to tap into fast-growing markets. The bank will continue to assess the effects of China’s recent stimulus package, which has spurred volatility and increased client activity in sectors including wealth, equities, and foreign exchange.
Despite the bank’s progress, shareholder pressure remains high. Major investor Ping An last year proposed a spinoff of HSBC’s Asia assets amidst intensifying US-China tensions, although the motion was ultimately dismissed.
HSBC shares in Hong Kong have gained approximately 11% since January.
