{"id":5404,"date":"2023-11-01T07:25:55","date_gmt":"2023-11-01T07:25:55","guid":{"rendered":"https:\/\/connectwithfund.com\/news\/hsbcs-after-tax-profit-surges-over-135-year-on-year-announces-3-billion-share-buyback\/"},"modified":"2023-11-01T07:25:56","modified_gmt":"2023-11-01T07:25:56","slug":"hsbcs-after-tax-profit-surges-over-135-year-on-year-announces-3-billion-share-buyback","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=5404","title":{"rendered":"HSBC&#8217;s after-tax profit surges over 135% year-on-year, announces $3 billion share buyback"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"group\">\n<p>HSBC&#8217;s profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last year.<\/p>\n<p>Europe largest bank by assets also saw profit before tax for the quarter rise by $4.5 billion to $7.7 billion, mainly due to a higher interest rate environment.<\/p>\n<p>However, the numbers missed expectations by economists, who were forecasting a third quarter profit after tax figure of $6.42 billion and profit before tax of $8.1 billion.<\/p>\n<p>HSBC said the increase was in part due to a $2.3 billion impairment in the third quarter of 2022 relating to the planned sale of its retail banking operations in France.<\/p>\n<p>Of that, $2.1 billion was reversed in the first quarter of 2023 as it became less certain that the transaction would be completed.<\/p>\n<p>&#8220;We now expect to reclassify these operations to held for sale in 4Q23, at which point the impairment would be reinstated,&#8221; it said.<\/p>\n<p>Revenue rose to $7.71 billion in the third quarter, up from $3.23 billion a year ago. HSBC also attributed this to the higher interest rate environment, saying that it has supported growth in net interest income in all of its global businesses.<\/p>\n<p>Net interest margin \u2014 a measure of lending profitability \u2014 stood at of 1.7%, up by 19 basis points year on year and beating estimates of 1.68%.<\/p>\n<p>However, NIM fell two basis points compared with the previous quarter. This reflected an increase in customers migrating their deposits to term products, particularly in Asia, HSBC said.<\/p>\n<p>For the nine months ended September, profit after tax stood at $24.33 billion, compared to $11.59 billion in the first nine months of 2022.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"><\/path><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"><\/path><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"><\/path><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"><\/path><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"><\/path><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><\/div>\n<\/div>\n<p><iframe title=\"Embedded Interactive Chart\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=5-HK&amp;range=1M&amp;type=mountain&amp;embedded=true&amp;%24DEVICE%24=undefined\" height=\"460\" scrolling=\"no\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<\/div>\n<div class=\"group\">\n<p>HSBC&#8217;s Hong Kong-listed shares rose 0.43% after the announcement.<\/p>\n<p>In light of the results, the bank&#8217;s board approved a third interim dividend of 10 cents per share. HSBC also said it will initiate a further share buy-back of up to $3 billion, which is expected to &#8220;commence shortly&#8221; and be completed by its full-year results announcement on Feb. 21, 2024.<\/p>\n<p>&#8220;We&#8217;re pleased to again reward our shareholders. We have now announced three share buybacks in 2023 totaling up to $7 billion, as well as three quarterly dividends which total $0.30 per share,&#8221; group CEO Noel Quinn said in the release. &#8220;This underlines the substantial distribution capacity that we have, even as we continue to invest in growth.&#8221;<\/p>\n<p>The buyback is expected to have a 0.4 percentage point impact on its common equity tier 1 capital ratio, or CET1 ratio, the bank said. The CET1 ratio is a measure of the financial resilience for European banks.<\/p>\n<p>Moving forward, HSBC said it plans to reduce its CET1 ratio to between 14% to 14.5%, down from the current level of 14.9%. It revealed that its dividend payout ratio is 50% for 2023 and 2024, excluding material notable items.<\/p>\n<p><em>Correction: The story has been updated to accurately reflect that after-tax profit rose 135% year-on-year and that HSBC announced a $3 billion share buyback.<\/em><\/p>\n<\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.cnbc.com\/2023\/10\/30\/hsbc-profit-after-surges-over-235percent-year-on-year.html\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HSBC&#8217;s profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last year. Europe largest bank by assets also saw profit before tax for the quarter rise by $4.5 billion to $7.7 billion, mainly due to a higher interest rate environment. However, the numbers missed expectations by economists, who were forecasting a third quarter profit after tax figure of $6.42 billion and profit before tax of $8.1 billion. HSBC said the increase was in part due to a $2.3 billion impairment in the third quarter of<\/p>\n","protected":false},"author":1,"featured_media":5405,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-5404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HSBC&#039;s after-tax profit surges over 135% year-on-year, announces $3 billion share buyback | ConnectWithFund<\/title>\n<meta name=\"description\" content=\"HSBC&#039;s profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/connectwithfund.com\/?p=5404\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HSBC&#039;s after-tax profit surges over 135% year-on-year, announces $3 billion share buyback | ConnectWithFund\" \/>\n<meta property=\"og:description\" content=\"HSBC&#039;s profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last\" \/>\n<meta property=\"og:url\" content=\"https:\/\/connectwithfund.com\/?p=5404\" \/>\n<meta property=\"og:site_name\" content=\"ConnectWithFund\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-01T07:25:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-01T07:25:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/connectwithfund.com\/wp-content\/uploads\/2023\/11\/107223486-1681241612036-gettyimages-1248481420-230317b7_banks_investments_b-gr_65.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/connectwithfund.com\/?p=5404\",\"url\":\"https:\/\/connectwithfund.com\/?p=5404\",\"name\":\"HSBC's after-tax profit surges over 135% year-on-year, announces $3 billion share buyback | ConnectWithFund\",\"isPartOf\":{\"@id\":\"https:\/\/connectwithfund.com\/#website\"},\"datePublished\":\"2023-11-01T07:25:55+00:00\",\"dateModified\":\"2023-11-01T07:25:56+00:00\",\"author\":{\"@id\":\"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52\"},\"description\":\"HSBC's profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last\",\"breadcrumb\":{\"@id\":\"https:\/\/connectwithfund.com\/?p=5404#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/connectwithfund.com\/?p=5404\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/connectwithfund.com\/?p=5404#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/connectwithfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"HSBC&#8217;s after-tax profit surges over 135% year-on-year, announces $3 billion share buyback\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/connectwithfund.com\/#website\",\"url\":\"https:\/\/connectwithfund.com\/\",\"name\":\"FinMarkPros\",\"description\":\"Latest Finance News and Updates\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/connectwithfund.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/connectwithfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/connectwithfund.com\"],\"url\":\"https:\/\/connectwithfund.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"HSBC's after-tax profit surges over 135% year-on-year, announces $3 billion share buyback | ConnectWithFund","description":"HSBC's profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/connectwithfund.com\/?p=5404","og_locale":"en_US","og_type":"article","og_title":"HSBC's after-tax profit surges over 135% year-on-year, announces $3 billion share buyback | ConnectWithFund","og_description":"HSBC's profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last","og_url":"https:\/\/connectwithfund.com\/?p=5404","og_site_name":"ConnectWithFund","article_published_time":"2023-11-01T07:25:55+00:00","article_modified_time":"2023-11-01T07:25:56+00:00","og_image":[{"width":1920,"height":1080,"url":"https:\/\/connectwithfund.com\/wp-content\/uploads\/2023\/11\/107223486-1681241612036-gettyimages-1248481420-230317b7_banks_investments_b-gr_65.jpeg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/connectwithfund.com\/?p=5404","url":"https:\/\/connectwithfund.com\/?p=5404","name":"HSBC's after-tax profit surges over 135% year-on-year, announces $3 billion share buyback | ConnectWithFund","isPartOf":{"@id":"https:\/\/connectwithfund.com\/#website"},"datePublished":"2023-11-01T07:25:55+00:00","dateModified":"2023-11-01T07:25:56+00:00","author":{"@id":"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52"},"description":"HSBC's profit after tax\u00a0came in at $6.26 billion in the three months ended September, jumping 135% compared to the $2.66 billion in the same period last","breadcrumb":{"@id":"https:\/\/connectwithfund.com\/?p=5404#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/connectwithfund.com\/?p=5404"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/connectwithfund.com\/?p=5404#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/connectwithfund.com\/"},{"@type":"ListItem","position":2,"name":"HSBC&#8217;s after-tax profit surges over 135% year-on-year, announces $3 billion share buyback"}]},{"@type":"WebSite","@id":"https:\/\/connectwithfund.com\/#website","url":"https:\/\/connectwithfund.com\/","name":"FinMarkPros","description":"Latest Finance News and Updates","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/connectwithfund.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/connectwithfund.com\/#\/schema\/person\/9344cb2de07361e178f5c834d2167e52","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/connectwithfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3740b286006c76c86a45c4879850da000667bb6f5bbe053edd4a416d2cc4fb80?s=96&d=mm&r=g","caption":"admin"},"sameAs":["https:\/\/connectwithfund.com"],"url":"https:\/\/connectwithfund.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts\/5404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5404"}],"version-history":[{"count":1,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts\/5404\/revisions"}],"predecessor-version":[{"id":5406,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/posts\/5404\/revisions\/5406"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=\/wp\/v2\/media\/5405"}],"wp:attachment":[{"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/connectwithfund.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}