Global economic recovery has helped HSBC post strong growth in profits during the third quarter of 2021. According to the bank, reported profit before tax reached $5.4 billion in Q3 2021, which is up by approximately 74% compared to the same period in 2020.
HSBC saw strong growth in all regions during the recent quarter. Asia remained the best-performing region for the financial services provider in Q3 2021. On the other hand, profit before tax related to HSBC UK also climbed significantly in the third quarter.
In Q3 2021, reported and adjusted operating expenses mainly remained unchanged. Net Interest Margin (NIM) was broadly stable compared with Q3 20 and Q2 21. Reported customer lending balances were down $20 billion in the quarter.
“We had a good third-quarter performance, with strong growth in profits supported by additional credit provision releases. Our strategy remains on track, with good delivery in all areas. This was reflected in more consistent top-line growth, robust lending pipelines across our businesses, and rising trade and mortgage balances,” Noel Quinn, Group Chief Executive at HSBC, said.
“While we retain a cautious outlook on the external risk environment, we believe that the lows of recent quarters are behind us. This confidence, together with our strong capital position, enables us to announce a share buyback of up to $2bn, which we expect to commence shortly,” Quinn added.
Outlook
Going forward, HSBC is expecting growth in revenues. The financial services provider also showed commitment to make progress on its ESG agenda including the bank’s climate commitments announced in October last year. “We continued to demonstrate strong cost control over the course of the year. Given inflationary pressures, continued investment, and the impact and timing of recently announced acquisitions and disposals, we now expect adjusted costs of approximately $32bn for 2021 and 2022, excluding the estimated UK bank levy charge of $0.3bn,” HSBC mentioned.
In July 2021, HSBC joined the cross-currency swaps service of CLS and IHS Markit.
Source: Read Full Article