HSBC’s 3rd-quarter profit dips amid falling interest rates, property slump, Madoff suit
Lender takes US$1 billion of expected credit losses, including US$200 million tied to commercial real estate in Hong Kong
The London-headquartered bank’s pre-tax profit dropped 14 per cent from a year earlier to US$7.3 billion, missing the US$7.66 billion expected by analysts. Top-line revenue rose 5 per cent to US$17.8 billion, mainly driven by higher fee income in the wealth and insurance businesses.
Still, CEO Georges Elhedery said the bank had become “a simple, more agile, focused bank”, during its 160th anniversary of establishment in Hong Kong.
“The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters,” Elhedery said in a statement to the Hong Kong stock exchange. “The positive progress we are making gives us confidence in our ability to upgrade our targets, and we now expect 2025 return on tangible equity excluding notable items to be mid-teens or better.”