HSBC profits jump as banking giant set for major shakeup


HSBC has seen its quarterly profits jump by 10% as the UK-based banking giant embarks on one of the biggest shakeups in its 159-year history.

The firm said its pre-tax profits rose to $8.5bn (£6.6bn) in the three months to the end of September, beating analysts’ expectations.

It comes just days after HSBC’s new boss announced a major overhaul of the company.

The firm will be split geographically into eastern and western markets amid increasing geopolitical tensions and a need to cut costs.

HSBC’s new chief executive, Georges Elhedery, said that implementation of the plans will “begin immediately” and promised to share more details alongside the bank’s full-year results in February.

“We delivered another good quarter, which shows that our strategy is working,” Mr Elhedery added.

The bank also said it will buy back another $3bn of its own shares, on top of a $6bn buyback plan unveiled earlier this year.

“HSBC’s third-quarter results were solid, with no major surprises,” said Michael Makdad is a senior equity analyst at financial services firm Morningstar.

“Rather than the generally good results, I think the focus… will be on the structural overhaul”.

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