HSBC profits up
November 2, 2015
HSBC's 3Q profits before taxes rose 32 percent on the year, the bank reported Monday, citing a steep drop in fines for past misconduct and fewer litigation costs as reasons for the spike.
Costs related to penalties and compensation for customers were $1.4 billion (1.26 billion euros) less in the three months to September this year than in the same quarter in 2014.
Overall, pre-tax profits jumped to $6.1 billion from $4.6 billion last year. Analysts had estimated those profits would come in at $5.2 billion.
The lower fees came at the right time as they were able to counteract a slowdown in Asia and increased spending on regulatory compliance.
"Our third quarter performance was resilient against a tough market backdrop," HSBC CEO Stuart Gulliver said, referring to fierce sell-offs among Asian traders as worries over a slowdown in China's economy, the world's second-largest, weigh on stocks.
Some analysts also attributed the bank's third-quarter performance to an aggressive restructuring plan, which they said were beginning to have an effect on HSBC's cost base.
Those cost-cutting measures will ultimately see the bank slash its global workforce by 50,000, according to an announcement made it June.
cjc/hg (AFP, Reuters)