The rise in pre-tax profit to $8.5 billion reflected a strong performance in its wealth management division as well as higher revenues in global banking and markets, HSBC said in an earnings release.
The London-headquartered bank last week announced a major shakeup under new chief executive Georges Elhedery, who assumed his role in September.
"We delivered another good quarter, which shows that our strategy is working," Elhedery said in a statement Tuesday.
HSBC on Tuesday also upped total distribution this year to $18.4 billion, and announced a fresh round of share buybacks of "up to $3 billion" -- the latest in a series of moves to distribute capital to its investors.
Third-quarter revenue increased by five percent on-year to $17 billion, while operating expenses during the same period rose two percent on-year to $8.1 billion.
The sale of HSBC's Argentina business, first revealed in April, is expected to be completed in the fourth quarter of this year, the bank added.
- Structural overhaul -
Last week, HSBC said it would simplify its structure and split into four distinct parts starting next year: Hong Kong, UK, "corporate and institutional banking" plus "international wealth and premier banking".
The bank will also streamline its geographical set-up by bringing together its Asia-Pacific and Middle East regions, while uniting the European and US operations under one roof.
Chief risk officer Pam Kaur will take over as chief financial officer from January 1 -- the first woman in the role in the bank's 160-year history.
The changes are "aimed at increasing focus on leadership and market share in the areas where we have clear competitive advantages, creating a simpler organisation with clarity of accountability and faster decision-making, and reducing the duplication of processes", HSBC said on Tuesday.
Elhedery said in an internal memo that "there will inevitably be a reduction in duplicated roles, particularly at senior levels" due to the restructuring, according to Bloomberg News.
More details about the reorganisation will be announced in February along with its full-year results, HSBC said.
HSBC generates most of its revenue in Asia and has spent several years pivoting to the region, vowing to develop its wealth business and target fast-growing markets.
The bank said it will continue to monitor the impact of China's package of stimulus measures announced last month.
"These measures resulted in elevated volatility at the end of (the third quarter), which resulted in an increase in client activity, notably in Wealth, Equities, and Global Foreign Exchange in Hong Kong," it said.
The lender this month became a direct participant in China's cross-border interbank payment system, or CIPS.
HSBC shares in Hong Kong have risen by around 11 percent since the start of the year.
The bank, which straddles East and West as Europe's biggest lender, has come under pressure as US-China tensions rachet up.
Major shareholder Ping An last year called on HSBC to spin off its Asia assets but the proposal was voted down.
Asian markets fluctuate with eyes on megatech results
Hong Kong (AFP) Oct 29, 2024 -
Asian markets fluctuated in volatile trade Tuesday with investors looking ahead to the release of US economic data and the earnings reports of tech titans this week.
Oil prices steadied following sharp falls Monday on relief that Israel's strikes on Iran spared the country's energy infrastructure and that the risk of escalation in the Middle East had eased.
Concerns in the oil market have now shifted back to focus on potential oversupply in 2025 and a slowdown in demand from China, the world's largest oil importer, according to analysts.
US stocks closed higher Monday, boosted by the cheaper oil, and as investors look ahead to a busy week of economic indicators with the market already hovering near record highs.
The US government will release its third quarter GDP growth estimate this week, as well as its closely watched monthly labour market report, ahead of the Federal Reserve's next rate decision just after the US presidential election.
Futures traders currently overwhelmingly expect a 25 basis points cut, according to CME FedWatch.
Investors are also eyeing the earnings reports of five of the "Magificent Seven" tech giants due this week, including Google parent Alphabet, Amazon, Apple, Facebook-parent Meta, and Microsoft.
Asian markets fluctuated with Tokyo, Hong Kong, Sydney, Seoul and Kuala Lumpur in the green, while Shanghai, Singapore, Taipei, Bangkok and Manila retreated.
London, Frankfurt and Paris all rose in early European trade.
Japanese shares built on the previous day's strong gains as cheaper oil and the weaker yen boosted the market despite the political uncertainty following Sunday's general election which left the ruling coalition short of a majority.
Investors are also awaiting the Bank of Japan's rate decision later this week, with the central bank expected to stand pat following two hikes earlier this year.
"Although BoJ monetary policy will not be directly affected by the political machinations underway to find a governing coalition in Tokyo, it is likely that the next government will need to scale up fiscal spending," said Alvin Tan of RBC Capital Markets.
"In this vein, there could be increased pressure on the BoJ to go slow on policy tightening."
Focus is also on a key political meeting in Beijing next week, with investors hoping for details of an expected major stimulus plan to support the Chinese economy, which has struggled to recover from the pandemic with growth dragged down a debt crisis in the property sector.
The People's Bank of China on Monday rolled out a new lending tool to inject liquidity into the market, with about 2.9 trillion yuan ($407 billion) in loans set to expire in November-December.
"With the clock ticking, Beijing hopes this tool will prop up market sentiment and counter any looming liquidity crunch," said Stephen Innes, analyst at SPI Asset Management.
"The timing here isn't just tactical; it's essential. China's economic engine has been sputtering with soft demand and lacklustre growth data, and with the potential shake-up of the US election looming enormous, stability in the financial markets is critical for Beijing," Innes said.
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