HSBC prof­its up de­spite Brexit

The Irish Times - - Business Markets -

HSBC may move fewer than 1,000 jobs to Paris fol­low­ing Bri­tain’s exit from the Euro­pean Union, the bank’s fi­nance direc­tor Iain Mackay said yes­ter­day.

“It may be less than 1,000 em­ploy­ees, but it’s up to 1,000,” Mackay told re­porters on a con­fer­ence call.

Pre­vi­ous com­ments from se­nior HSBC ex­ec­u­tives had em­pha­sised the num­ber of jobs to move would be 1,000.

Mackay said the bank had booked $12 mil­lion in costs for the third quar­ter in re­la­tion to Brexit, mostly spent on le­gal ad­vice re­gard­ing con­tin­gency plan­ning. The bank still ex­pects to spend $200-$300 mil­lion in to­tal on Brexit re­lo­ca­tion costs, he said.

Yes­ter­day HSBC re­ported a near five-fold rise in third-quar­ter prof­its, as the bank­ing gi­ant pushed for­ward with its cost-cut­ting pro­gramme and ben­e­fited from its pivot to Asia.

The lender said pre-tax prof­its rose to $4.6 bil­lion in the three months to Septem­ber 30th, mark­ing a 448 per cent jump com­pared to $843 mil­lion dur­ing the same pe­riod last year.

Re­ported rev­enue for the quar­ter came in at $12.98 bil­lion, mark­ing a slight slow­down from $13.17 bil­lion in the pre­vi­ous quar­ter, but a 36 per cent rise from $9.51 bil­lion a year ear­lier.

HSBC said it ex­pe­ri­enced growth across three of its main busi­nesses, with rev­enue in­creas­ing across its re­tail bank­ing and wealth man­age­ment op­er­a­tions, com­mer­cial bank­ing, as well as its global bank­ing and mar­kets di­vi­sion.

Chief ex­ec­u­tive Stu­art Gul­liver cheered the lender’s re­sults, say­ing it “main­tained good mo­men­tum in the third quar­ter”, and was mak­ing “good progress” with the strate­gic over­haul it launched back in 2015.

Mr Gul­liver has over­seen strin­gent job cuts and as­set sales as part of ef­forts to boost prof­its, and yes­ter­day as­sured in­vestors that it was on track to de­liver around $6 bil­lion in cost sav­ings by the end of the year.

– (Reuters)

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