During the third quarter of 2021, HSBC has shown strong performance, the company revealed today.
The bank reported profit before tax of $5.4 billion in Q3, up by 74% compared to the same period during the previous year, when it was $3.1 billion.
HSBC noted that all regions were profitable during Q3 with Asia remaining the lead with contributions of $3.3 billon. HSBC UK’s profit before tax also increased to $1.5 billon.
Noel Quinn, Group Chief Executive, said:
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.
HSBC’s outlook for revenue remains positive with expectations to see growth, moving forward. The company also noted that it remains committed to the ESG agenda and continues to make progress.
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.
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.
Earlier in July, HSBC joined the cross-currency swaps service of CLS and IHS Markit as a member.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.