HSBC reported pre-tax profit for the quarter that jumped 75.8% from the same quarter last year’s $5.4 billion. The figures came in more than double what the analysts were looking for – a 22.8% increase.
According to bank officials, HSBC released around $700 million of cash, initially set aside to raise pandemic-induced loan losses.
The bank reported revenue came in at $12 billion, 0.7% higher than the year-ago quarter. Despite the strong figures, HSBC didn’t announce any dividends for the third quarter. However, it revealed plans to start a $2 billion share buyback program shortly. Regarding this matter, Ewen Stevenson, CFO of HSBC, stated: “We don’t want to sit on excess capital if we have it, and hence the $2 billion buyback.”
Given the ongoing situation with the Chinese real estate developer – Evergrande – HSBC said it had no direct credit exposure. Stevenson has revealed that the bank is “very comfortable” with its position in the country’s real estate sector. According to Reuters, HSBC’s exposure to the real estate sector was around $19.6 billion.
After the report, during the Hong Kong trading hours, HSBC closed 0.43%.
Sources: cnbc.com, reuters.com