HSBC unveils $3bn buyback as profits surge in CEO Quinn's final results

(Sharecast News) - HSBC on Wednesday said it would start a $3bn share buyback after the Asia-focused bank reported estimate-busting interim profits in its final set of results under chief executive Noel Quinn. Pre-tax profits surged to $8.9bn from $8.8bn a year earlier and smashed analysts' forecasts of $7.8bn.

Quinn, who has been CEO for five years will be succeeded by finance chief Georges Elhedery. The bank announced that financial controller Jon Bingham would take on the chief financial officer role on an interim basis.

Net interest income was down $1.4bn to $16.9bn, while the net interest margin - the difference between what the bank charges on loans and pays out on savings - fell to 1.62% from 1.7% a year earlier.

HSBC has identified its wealth business, which encompasses life insurance and private banking, as a primary catalyst for its revenue expansion. The bank also noted an increase in profits within its core markets of Hong Kong and the UK.

Reporting by Frank Prenesti for Sharecast.com