HSBC reports revenue for the third quarter of 2019
HSBC Tower in Canary Wharf Financial District, London, England
Mike Kemp | In pictures | Getty Images
Europe's largest lender HSBC reported third-quarter pre-tax profits falling one year ago, despite strength in Asia operations.
The bank said it reported pre-tax profits falling 18% on the year to $ 4.8. billion in the three months ended September. On an adjusted basis, HSBC said pre-tax profit fell 1[ads1]2% to $ 5.3 billion. Analysts predicted that HSBC's pre-tax profit would fall 11% to $ 5.3 billion for the quarter, Reuters reports.
HSBC's reported revenue for the quarter was $ 13.36 billion, a 3% loss for the year.
CEO, said parts of the bank's operations, especially in Asia, held up well in a "challenging third quarter environment." The bank said its pre-tax profit in Asia climbed 4% from last year, noting a "resilient performance in Hong Kong."
But in other parts, Quinn said HSBC's performance was "unacceptable," including business operations in continental Europe.
"Our previous plans are no longer sufficient to improve the performance of these businesses, given the softer prospects for revenue growth. We are therefore accelerating plans to redevelop them, moving capital to higher growth and return opportunities," said Quinn.
HSBC shares listed in Hong Kong dipped slightly after the earnings announcement, but still traded up 0.65%.
Here are other financial calculations, for the nine months ended September 30, which analysts and investors looked at: [19659012] Net interest margin, a measure of lending profitability, was 1.59% – lower than 1.67 % in September 2018.
Although the bank is headquartered in London, most of the profits from Asia, especially Hong Kong, earn. During the first half of this year, the city accounted for 51.7% of the bank's pre-tax profits, according to previous financial filings.
Hong Kong has been crippled by widespread and increasingly violent demonstrations since June, affecting the city's many small and medium-sized businesses. In August, HSBC announced measures such as interest rate rebates and tax cuts to help the city's SMEs amid economic uncertainty.
