Pre-tax profit rises over fivefold in Q3

HSBC said yesterday that its profit rose in the third quarter as a sweeping corporate overhaul aimed at winning more business in Asia paid off.

The London-based global bank said pretax profit rose to US$4.6 billion in July to September, an over fivefold rise from US$843 million a year ago.

It reported net income of nearly US$3 billion, swinging from a loss of US$617 million the previous year as revenue climbed 38 percent to US$13.2 billion.

HSBC also said it has carried out 71 percent of a US$2 billion share buyback announced three months ago and plans to complete it by the year’s end.

CEO Stuart Gulliver said the bank “maintained good momentum” in the latest quarter, with higher revenue in all three of its main global businesses.

“Our pivot to Asia is driving higher returns and lending growth, particularly in Hong Kong and the Pearl River Delta,” said Gulliver, referring to the affluent industrialized region in Guangdong Province.

HSBC is in the midst of carrying out a restructuring with the goal of increasing profitability. The plan includes bringing in new leadership, shedding thousands of workers and shrinking its global footprint so it can focus even more on Asia’s emerging markets.

This month, new Chairman Mark Tucker, the first outsider to hold the job, named veteran banker and company insider John Flint to replace Gulliver as CEO in February.

HSBC shares in Hong Kong shed 0.3 percent, in line with the market’s broader trend.