(Finance) – HSBCa British banking giant, closed the third quarter of 2023 with a profit before taxes increased by $4.5 billion to $7.7 billion, reflecting the positive impact of a higher interest rate environment. The result, however, is lower than the average analyst estimate of $8.1 billion, according to a consensus compiled by the company itself.
THE revenues increased by $4.7 billion, or 40%, to $16.2 billion, as the higher interest rate environment supported growth in net interest income across all global businesses. The expected credit losses and other credit impairment charges are $1.1 billion, essentially in line with Q3’22; Q3 2023 charges include $0.5 billion related to China real estate.
The operating expenses of $8.0 billion increased by 2%, primarily due to higher technology costs, the effects of rising inflation and increased performance-related pay.
“We have had three consecutive quarters of strong financial performance and we are on track to meet our 2023 mid-teens tangible equity target – commented the CEO Noel Quinn – Good general growth was recorded across all businesses and geographic areas, supported by the interest rate environment. Our Wealth business also gained further momentum, attracting $34 billion in net new invested assets in the quarter and increasing asset balances by 12% compared to last year.”
The board approved a third interim dividend of $0.10 per share. HSBC also intends to launch a further buyback of own shares for up to $3 billion, which it expects to begin shortly and complete by the announcement of full-year 2023 results on February 21, 2024. This is expected to have an impact of 0.4 percentage points on CET1.
“We are pleased to once again reward our shareholders – highlighted the CEO – We have now announced three share buybacks in 2023 for a total of $7 billion, as well as three quarterly dividends for a total of $0.30 per share This underlines the substantial distribution capacity that we have, even as we continue to invest in growth“.