2 weeks Ago By gp
AFP – Banking giant HSBC said yesterday that pre-tax profit in the third quarter rose 10 per cent year-on-year, citing revenue growth in two of its divisions, days after the lender announced an organisational overhaul. The rise in pre-tax profit to USD8.5 billion reflected a strong performance in its wealth management division as well as higher revenues in global banking and markets, HSBC said in an earnings release.
The London-headquartered bank last week announced a major shakeup under new chief executive Georges Elhedery, who assumed his role in September. “We delivered another good quarter, which shows that our strategy is working,” Elhedery said in a statement yesterday. HSBC yesterday also upped total distribution this year to USD18.
4 billion, and announced a fresh round of share buybacks of “up to USD3 billion” – the latest in a series of moves to distribute capital to its investors. The sale of its Argentina business, first revealed in April, is expected to be completed in the fourth quarter of this year, the bank added. Last week, HSBC said it would simplify its structure and split into four distinct parts starting next year: Hong Kong, United Kingdom, “corporate and institutional banking” plus “international wealth and premier banking”.
Elhedery said the changes – which will also streamline its geographical set-up – will let it “better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow”. The chief executive officer said in an internal memo that “there will inevitably be a reduction in duplicated roles, particularly at senior levels” due to the restructuring, according to Bloomberg News. Chief risk officer Pam Kaur would take over as chief financial officer from January 1 – the first woman in the role in the bank’s 160-year history.
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