HSBC registers 18% drop year to year profit before tax in Q3
International bank HSBC which is regarded as largest lender in Europe reported that its pre- tax profits for third quarter fell in comparison to last year though its Asian operations were pretty strong. It stated that its profits before tax fell by 18 % to $4.8 billion in the third quarter that ended in September. Its adjusted pretax profits fell 12 % to $ 5.3 billion while analysts predicted that pretax profits during third quarter would fall by 11 %. The revenue of HSBC for this quarter was $13.36 billion which represents yearly loss of 3 %.
The bank’s interim group chief executive Noel Quinn said that several part of its core business in regions like Asia held together even in a challenging environment during third quarter. He said that its Asian pretax profits climbed up by 4 % due to resilient performance in Hong Kong. But the bank’s performance in other parts of the world was not acceptable specifically within continental Europe. Quinn stated that their previous plans were insufficient to improve performance of businesses in these areas and revenue growth would also be soft. So they are planning to remodel them and move capital from these areas to places with opportunity of high growth and better returns.
The bank’s shares listed in Hong Kong dipped slightly after the earnings announcement but still traded above 0.65 %. Financial metrics for the bank towards end of September 30, 2019, that are being watched closely by investors and analysts net interest margin that fell from 1.67 % in September last year to 1.59 % this year and EPS that stood at 57 cents was on par with EPS last year of 56 cents. Though the bank’s headquarters are in London it earns maximum profits from Hong Kong and during first half of this year the division accounted for 51.7 % of HSBC’s pretax profits.