HSBC shares up as bank posts surprising rise in pretax profits
HSBC shares rallied yesterday in a positive response to quarterly profit results after the British 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 7 percent from a year ago to US$5.59 billion, beating expectations.
Reported pretax profit, however, plunged 86pc from a year ago 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.
HSBC last year announced an overhaul to cut costs by $5 billion by shedding 50,000 jobs worldwide, exiting unprofitable businesses and focusing more on Asia. –