Home Business Higher interest rates help to more than double HSBC profits

Higher interest rates help to more than double HSBC profits

UK-based banking giant HSBC says its quarterly profits jumped to $7.7bn (£6.35bn), boosted by higher interest rates.

That is as the firm’s pre-tax profit for the period to the end of September more than doubled from a year earlier.

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“We have had three consecutive quarters of strong financial performance”, group chief executive Noel Quinn said in a statement.

However, that was still lower than the $8.1bn profit expected by analysts.

The bank also announced a plan to buy back another $3bn of its shares from investors, as well as a new dividend payout to shareholders.

That brings HSBC’s total share buybacks for this year to $7bn and the total dividend payout to 30 cents per share.

“We are pleased to again reward our shareholders,” Mr Quinn said.

HSBC also said it had taken a $500m hit related to China’s crisis-hit property market.

“We continue to monitor risks related to our exposures in mainland China’s commercial real estate sector closely, and there remains a degree of uncertainty in the forward economic outlook, particularly in the UK,” the company said in the results statement.

HSBC, which has its headquarters in London, generates most of its income in Asia.

Last week, HSBC’s Asia-focused rival Standard Chartered reported an unexpected plunge in its third-quarter profit due to a nearly $1bn billion combined hit from its exposure to China’s real estate and banking sectors.

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