The London-based bank reported profits before taxes of $3. 15 billion for the three months that ended on September 30 compared to profits of $5. 4 billion for the comparable period the year prior, although the results were far higher than the $ 2. 45 billion average estimate of adult analysts.
The Hong Kong Stock Exchange released a statement detailing the outcomes, which included a $2 reduction in value.
4 billion, adding that the bank was “exploring the idea of selling” its unit “in Canada” after resuming the retail sales procedure in France to put up for sale.
The statistics also revealed a three percent quarterly sales reduction of $11.6 billion.
The profit report included information on the challenging global economic environment that international banks were dealing with.
The statement said that the “global economy is still being burned by the opposing winds of the macroeconomic environment, including high inflation and reduced growth forecasts.”
The Ukraine crisis, the decline of the British pound in Britain, and the gloomy conditions in China’s real estate market were all expressly mentioned by HSBC as contributing factors to the current state of global concern.
However, according to CEO Noel Quinn, in addition to keeping expenses down, the bank places a high priority on attaining the target of at least 12% growth in income for the upcoming year.
HSBC is under pressure from “Bengn An,” the Chinese company that is the bank’s largest shareholder, to investigate the possibility of separating the operations of the Asian HSBC Bank and listing its shares on the Hong Kong Stock Exchange as an independent entity, which can increase value for stockholders. HSBC generates the majority of its sales and profits in Asia.
According to HSBC Bank’s annual report at the end of 2021, Beng An owns around 8% of the bank’s shares. The Asian market accounts for around 65 percent of the bank’s income before taxes, as opposed to 20 percent from the European market.
Because of these factors, HSBC profits increased by 42% in the third quarter.
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