HSBC higher as profits jump

HSBC is up 2.5% after the bank revealed a 30% increase in third-quarter profits.

The bank announced a pre-tax profit of £2.8 billion for the three months until September, which compares with £2.12 billion for the same period last year. Unlike other British banks HSBC conducts a lot of business in the Far East; when combined, UK and Hong Kong divisions equated to more than half the company’s profits. More of a focus will be on fast growing economies in Asia in the future.

Since the start of the year, HSBC has either disposed of or shutdown 12 non-core businesses, which is a sign that the bank is freeing up capital to focus on more successful operations. Total costs for Q3 were $9.6 billion, a drop of 6.8% compared with last year. This is partially because of large fines incurred in 2012; HSBC was fined a record $1.9 billion by the US authorises for not having stringent enough anti-money laundering policies. 

HSBC confirmed it is being investigated along with other major banks as a part of a global probe into an alleged case of currency manipulation. If allegations are true the bank could be hit with another major fine.

HSBC chart

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