 beat forecasts in its results for the third quarter, posting a 28% rise in profits.){kind=link}
HSBC (LON:HSBA) beat forecasts in its results for the third quarter, posting a 28% rise in profits.
The bank posted pre-tax profits of $6.2 billion(£4.8 billion) for the three months to Sept 30, up 16% from $5.3 billion the year before.
Reported revenue rose 6.3pc to $13.8 billion over the period.
HSBC said growth had been largely driven by Asia, which the bank has continued to focus upon in recent years.
Notably, the FTSE-100 company derive more than three quarters of their profits from the region.
Moreover, cost-cuttting initiatives also helped to boost profitability during the period.
Chief executive John Flint said: “These are encouraging results that demonstrate the revenue potential of HSBC.
“We are doing what we said we would – delivering growth from areas of strength, and investing in the business while keeping a strong grip on costs.”
Laith Khalaf, a senior analyst at Hargreaves Lansdown, said: “HSBC may be the second biggest company on the UK stock market, but its profits are predominantly emanating from its historic home in the far east. Three-quarters of the bank’s profits so far this year have come from its Asian operations, leaving the European business trailing in its wake.”
“Profit growth has been broad-based across HSBC’s main banking activities, and what’s positive is that’s coming from a rising top line rather than simply cost-cutting, which can only deliver results for so long. Indeed adjusted operating costs have actually ticked up, though that’s to support investment in growth opportunities, notably in the bank’s digital proposition.”
He added: “As an international retail and commercial bank, HSBC is clearly plugged into the global economy, and in particular the fortunes of China and the surrounding area. While in the long term this looks like an ace in the sleeve, investors should expect a bumpy journey, particularly if Trump’s trade war dents growth in the region,” he added.
Shares in HSBC are currently trading +5.70 % as of 12.01PM (GMT)