Europe’s largest bank re­ports 448% jump in pre-tax profit

Iran Daily - - Tse & Global Economy -

HSBC, Europe’s largest bank, said on Mon­day its pre-tax profit jumped 448 per­cent year-on-year in the three-mon­thes ended Septem­ber.

The bank’s third-quar­ter pre-tax profit was $4.62 bil­lion, surg­ing from $843 mil­lion in the same pe­riod a year ago, CNBC wrote.

HSBC shares in Hong Kong were up 1.1 per­cent on the day by 11:59 fol­low­ing the re­lease of its lat­est fi­nan­cial state­ment.

An­a­lysts had ex­pected the bank, which is listed in Hong Kong, Lon­don and New York, to re­port an in­crease in third-quar­ter pre-tax profit and rev­enue, helped by the con­tin­u­ous cost-cut­ting ef­fort and a low base from a year ago.

“I think on a year-on-year ba­sis there will be mul­ti­ple jumps on profit be­cause of the low base last year, which was, in turn, caused by a one-off ex­pense last year. But on a quar­terly ba­sis, the third-quar­ter profit will prob­a­bly be lower than the sec­ond quar­ter due to de­cline in in­come and some jump in the pro­vi­sions for bad loans,” Ivan Li, re­search direc­tor at DBS Vick­ers Hong Kong, told CNBC be­fore the re­lease.

The bank’s third quar­ter 2016 re­ported pre-tax profit came in at $843 mil­lion and ad­justed rev­enue was at $12.8 bil­lion. In the first half of this year, the bank beat es­ti­mates with a pre-tax profit of $10.24 bil­lion and rev­enue of $26.1 bil­lion — a per­for­mance that helped HSBC shares climb in all three list­ings.

In Hong Kong, the bank has risen some 24 per­cent this year, help­ing the Hang Seng In­dex to out­per­form many of its re­gional peers.

ADAM JEFFERY/CNBC

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