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Introduction: HSBC profits jump 32%
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
As he puts the finishing touches to tomorrow’s budget, John Healey may note that another bank has reported a jump in earnings.
HSBC is handing another $2.7bn (£2bn) to shareholders after a 32% surge in profits, that will further assure the Treasury that the UK’s top banks can shoulder a tax hike in tomorrow’s’s budget, my colleague Kalyeena Makortoff reports.
The London headquartered bank reported this morning that profits grew nearly a third to $9.6bn in the July to September quarter – slightly below consensus estimates – helped by higher interest rates, lower loan losses and smaller legal provisions compared to last year.
It meant the bank could hand $2.7bn to shareholders. That included another $1bn share buyback, as well as an interim dividend of $0.1 per share, that the bank said would mean distributing another $1.71bn to its investors.
Net interest income – the difference between what banks charge for loans versus pay out for savers’ deposits, rose to $9.3bn from $8.8bn year on year. However, that was apparently lifted by its hedging strategy and a growth in deposits in Hong Kong, while UK deposits stayed flat.
HSBC is following Barclays, which last week reported a 12% jump in profits
The agenda
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Morning: UK holds auction of Treasury Gilt 2032
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1pm GMT: US house price index
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2pm: US consumer confidence report
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2pm: US new homes sales data
Key events
HSBC ‘very encouraged’ by Burnham’s growth agenda
Kalyeena Makortoff
HSBC CFO Pam Kaur is speaking to the media now.
On the issue of a bank tax (which John Healey could announce tomorrow), Kaur expresses support for what Andy Burnham’s government are doing, saying:
“We only have 24 hours to go. We are very encouraged by the government’s growth agenda, particularly how we can lean-in to support not just specific sectors like UK innovation, infrastructure. and the UK trade deals, but also in terms of how we are the connector for the UK with the rest of the world, given the success the government has had with many of these international trade deals.”
But Kaur also said HSBC would have to ‘respond to customer behaviour’:
“Now, obviously, as our customers make their business investment decisions, we will respond accordingly, because that’s what we do as banks. When the lending demand goes up, we lend more. We are ready with the right risk appetite to do so. We’ll just have to see how businesses and customers react.”
Announcing today’s financial results, Georges Elhedery, HSBC’s group CEO, said:
“Our performance shows that in a more complex world clients continue to turn to us to navigate uncertainty and seize new opportunities.
It also reflects consistent execution of our strategic priorities with pace, precision and discipline.
As we simplify HSBC, we are creating greater capacity to invest, grow and deliver strong returns for our shareholders.”
Introduction: HSBC profits jump 32%
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
As he puts the finishing touches to tomorrow’s budget, John Healey may note that another bank has reported a jump in earnings.
HSBC is handing another $2.7bn (£2bn) to shareholders after a 32% surge in profits, that will further assure the Treasury that the UK’s top banks can shoulder a tax hike in tomorrow’s’s budget, my colleague Kalyeena Makortoff reports.
The London headquartered bank reported this morning that profits grew nearly a third to $9.6bn in the July to September quarter – slightly below consensus estimates – helped by higher interest rates, lower loan losses and smaller legal provisions compared to last year.
It meant the bank could hand $2.7bn to shareholders. That included another $1bn share buyback, as well as an interim dividend of $0.1 per share, that the bank said would mean distributing another $1.71bn to its investors.
Net interest income – the difference between what banks charge for loans versus pay out for savers’ deposits, rose to $9.3bn from $8.8bn year on year. However, that was apparently lifted by its hedging strategy and a growth in deposits in Hong Kong, while UK deposits stayed flat.
HSBC is following Barclays, which last week reported a 12% jump in profits
The agenda
-
Morning: UK holds auction of Treasury Gilt 2032
-
1pm GMT: US house price index
-
2pm: US consumer confidence report
-
2pm: US new homes sales data
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