HSBC’s Elhedery dismisses spin-off talk as 3rd-quarter results beat forecast, stock soars
Net profit rose 9 per cent to US$6.13 billion in the quarter that ended on September 30, exceeding market forecasts
HSBC’s chief executive dismissed talk about spinning off units after growth in the bank’s wealth and personal banking divisions helped its third-quarter result beat market expectations and drove the stock to a six-year high.
The bank’s restructuring plan, unveiled last week, “is not a precursor of an intent for the separation of our business”, CEO Georges Elhedery said Tuesday on a call after the company released its earnings report.
Net profit rose 9 per cent to US$6.13 billion under international accounting rules in the quarter that ended on September 30, beating market forecasts to grow for the first time in four quarters. Total revenue increased by 5 per cent to US$17.21 billion.
The lender announced a US$3 billion stock buy-back that is in addition to a US$6 billion repurchase programme unveiled earlier this year. It will also pay an interim dividend of 10 cents a share.
“There was strong revenue growth and good performances in wealth and wholesale transaction banking,” Elhedery said. “Our strong organic capital generation enables us to announce a further US$4.8 billion of distributions [of dividends and buy-backs] in the third quarter, which brings the total distribution announced so far in 2024 to US$18.4 billion.”
