HSBC’s profit jumps 28% for Q3

The group reported a pre-tax profit of US$5.9 billion for the third quarter, 28% higher than the US$4.6 billion a year ago

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HSBC Holdings on Monday posted a better-than-expected rise in profit for the third quarter, with gains supported by its Asia business.

The group reported a pre-tax profit of US$5.9 billion for the third quarter, 28% higher than the US$4.6 billion a year ago and more than the US$5.6 billion estimate which analysts expected.

Managing its expenses better also helped in the increased profits. Expenses for the quarter fell by 2.4% compared to the second quarter.

Revenue for the three months ending September grew by 6.3% year-on-year to US$13.8 billion.

In the company filing to the Hong Kong stock exchange, HSBC’s CEO John Flint said the company is delivering what it said it promised it would – growth in areas of strength and investing in the business while keeping a grip on costs.

Mr Flint has previously promised to invest US$17 billion by 2020 on technology and in China, switching from the group’s strategy focus on cost-cutting to growth. HSBC is ramping up on hiring in business units such as private banking and investment banking.

HSBC’s shares gained sharply to almost 5% at 3.15pm Hong Kong time, or HK$3.00, at HK$63.50.

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