HSBC pre-tax profits rise on-year

Last week HSBC reported profits before tax (PBT) rose to $4.53 billion in the third quarter, up 30 percent against the same period last year’s $3.48 billion.

The group’s underlying PBT hit $5.056 billion in the third quarter, up 10 per cent compared to $4.6 billion last year. PBT for the first nine months totaled $18.6 billion, up 15 per cent or $2.383 billion against 2012.

Underlying PBT for the first nine months amounted to $18.145 billion, up 34 per cent or $4.64 billion on year Earnings per share and dividends per share also rose in the first nine months to $0.71 and $0.3 respectively, compared to $0.58 and $0.27 for the corresponding period last year.

Annualised return on equity rose 1.5 points in by end of the third quarter to 10.4 per cent compared to 8.9 per cent at the same point in 2012.

HSBC’s home markets the UK and Hong Kong contributed more than half of the group’s underlying PBT in the quarter and year to date.

The group’s revenue in the third quarter totalled $15.588 billion, mostly unchanged compared to the $15.661 billion reported last year. Notwithstanding, HSBC said it achieved broad-based revenue growth in Hong Kong.

HSBC also reported that it achieved lower operating costs in the third quarter, $9.572 billion, down 4 per cent from $9.952 billion last year.

The group also saw strong momentum in sustainable savings. In the third quarter it reported $400 million in sustainable savings across all regions bringing the total since early 2011 to $4.5 billion. In this area HSBC has already exceeded its annual target.

HSBC has made great progress in raising capital, but regulatory uncertainty remains. In the third quarter its core tier 1 ratio was 13.3 per cent and its common equity tier 1 ratio was 10.6 per cent.