HSBC's third-quarter profits beat expectations

(Sharecast News) - HSBC announced another $3bn share buyback on Tuesday as it posted better-than-expected third-quarter profits, underpinned by solid performances from the wealth and investment banking units. In the three months to the end of September, pre-tax profit rose 10% on the same period a year earlier to $8.5bn, versus analysts' expectations of $7.6bn.

HSBC said revenue increased 5% to $17bn, reflecting higher customer activity in its wealth products, supported by volatile market conditions.

Net interest income fell by $1.6bn to $7.6bn, reflecting reductions due to business disposals, higher interest expense on liabilities and a loss on the early redemption of legacy securities.

HSBC announced a major overhaul last week, saying it would divide its business into eastern and western markets in order to simplify its structure.

Chief executive Georges Elhedery said: "We delivered another good quarter, which shows that our strategy is working. There was strong revenue growth and good performances in Wealth and Wholesale Transaction Banking.

"HSBC is a highly connected, global business and the plans we set out last week aim to increase our leadership and market share in areas where we have competitive advantage, deliver best-in-class products and service excellence to our customers, and create a simpler, more dynamic, more agile organisation with clearer lines of accountability and faster decision-making.

"We will begin to implement these plans immediately and will share further details as part of a business update alongside our full-year results in February."