By Selena Li and Lawrence White
HONG KONG/LONDON (Reuters) -HSBC Holdings posted a ten% rise in third-quarter revenue on Tuesday, beating analyst estimates, as its wealth and wholesale banking benefited from slower-than-expected charge cuts whereas it embarks on one of many largest overhauls in its historical past.
Europe’s largest financial institution posted pretax revenue of $8.5 billion for the July-to-September interval versus $7.7 billion a yr earlier. The consequence in contrast with a $7.6 billion imply common of dealer estimates compiled by HSBC.
The London-headquartered, Asia-focused financial institution additionally introduced an extra share buyback of as much as $3 billion, on high of a $6 billion buyback programme introduced earlier this yr.
The lender unveiled a roadmap for its sweeping restructuring beneath new CEO Georges Elhedery designed to manage prices and enhance effectivity. HSBC introduced final week that it’s going to merge some operations and break up its geographic footprint into East and West, beneath a brand new management construction.
“We are going to start to implement these plans instantly,” Elhedery stated in an earnings assertion, however additional particulars can be disclosed in February subsequent yr.
HSBC saved its 2024 and 2025 near-term return on tangible fairness aim – a efficiency goal – at mid-teens for 2 years however stated within the assertion that the “the outlook for rates of interest has modified, and been risky”.
The financial institution stated it would pay an interim dividend of 10 cents a share, its third payout in 2024 following funds value 41 cents introduced earlier this yr.