HSBC profits jump 28% as wealth management income picks up
HSBC profits rose 28% in the third quarter of this year, as the bank reined in spending and wealth management income picked up for the firm.
The FTSE 100 giant announced pre-tax profits of $6.2bn (£4.8bn) for the three months to Sept 30, up 16% from $5.3bn the previous year.
Reported revenue rose 6.3% to $13.8bn over the period, driven by a rise in deposits across the global business, primarily in Asia.
The wealth management division’s profits were up 3% to $100m (£78m) year on year over the nine months to date, despite “investments in digital capabilities and investments to grow the business.”
The bank said that its wealth management division had been boosted by “increased investor confidence in the equity markets, higher mutual fund distribution and higher wealth insurance distribution.”
It added: “In wealth management, higher investment distribution revenue, reflecting increased investor confidence, more than offset lower life insurance manufacturing revenue, which included a net adverse movement in market impacts.”
Meanwhile, expenses were reduced by 2% between the second and third quarter and revenue – spending fell to $7.7bn from $7.9bn.
John Flint, who was appointed as HSBC’s chief executive last year, 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.
“We remain committed to growing profits, generating value for shareholders and improving the service we offer our customers around the world,” he added.