HSBC shares rally on profit re­sults

Kuwait Times - - BUSINESS -

HSBC shares ral­lied yes­ter­day in a pos­i­tive re­sponse to quar­terly profit re­sults af­ter the Bri­tish bank­ing gi­ant un­der­went a rad­i­cal cost-cut­ting ex­er­cise.

In the three months to Septem­ber its ad­justed pre­tax profit-which strips out one-off items and un­favourable cur­rency move­ments-rose seven per­cent from a year ear­lier to $5.59 bil­lion, beat­ing an­a­lysts’ ex­pec­ta­tions. Re­ported pre-tax profit, how­ever, plunged 86 per­cent from a year ear­lier to $843 mil­lion. That fig­ure in­cluded the im­pact of the sale of the bank’s Brazil busi­ness, which set the lender back $1.7 bil­lion.

“Re­ported prof­its were down, but ad­justed prof­its were higher than last year’s third quar­ter in all four global busi­nesses and four out of five re­gions,” said HSBC global chief ex­ec­u­tive Stu­art Gul­liver.

The bank posted a net loss of $204 mil­lion for the three-month pe­riod, re­vers­ing a year-ear­lier net profit of $5.23 bil­lion. HSBC last year an­nounced a rad­i­cal over­haul to cut an­nual costs by $5 bil­lion over two years by shed­ding 50,000 jobs world­wide, ex­it­ing un­prof­itable busi­nesses and fo­cus­ing more on Asia. Gul­liver said the bank had achieved $2.8 bil­lion in an­nu­alised sav­ings so far and was on track to reach its end-2017 tar­get.

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