HSBC has reported a 28% increase in profit before tax for the third quarter of 2018 at $5.9bn compared to $4.6bn during the corresponding period in 2017 due to strong growth in retail banking, wealth management and commercial banking, and lower operating expenses.
Adjusted pre-tax profit of $6.2bn, excluding the impact of foreign currency translation differences and movements in significant items, was 16% higher compared to $5.3bn in the third quarter of 2017.
HSBC Holdings, with headquarters in London, reported a 12% increase in pre-tax profit at $16.6bn for the nine months ended 30 September 2018, compared to $14.8bn for the corresponding period of 2017 due to growth in all global businesses, partly offset by higher operating expenses.
Adjusted profit before tax at $18.3bn was 4% higher when compared to $17.6bn during the nine months ended 30 September 2017. This is excluding the effects of foreign currency translation differences and movements in significant items.
During the nine months ended 30 September 2018, reported revenue was 5% higher at $41.1bn compared to $39.1bn in the corresponding period of 2017, driven by an increase in deposit revenue across global businesses, primarily in Asia, which were partly offset by lower revenue in corporate centre.
Adjusted revenue of $41.4bn was 4% higher during the nine-month period ($39.6bn in 2017), excluding the effects of foreign currency translation differences and movements in significant items.
Reported operating expenses for the nine-month period under review was $25.5bn, 2% higher, compared to $24.9bn in 2017, reflecting investments to grow the business and improve digital capabilities, and the impact of foreign currency translation differences, partly offset by a favorable movement in significant items.
Adjusted operating expenses at $24.1bn were 6% higher compared to $22.7bn, excluding the effects of foreign currency translation differences and movements in significant items.
Adjusted jaws for the nine months ended 30 September 2018 was -1.6%.
The bank’s loans and advances to customers increased by $8.0bn during the third quarter of 2018 compared to the second quarter of 2018.
Excluding foreign currency translation differences, loans and advances grew by $14bn or 1% from the previous quarter.
Capital base continued to be strong, with a common equity tier 1 (CET1) ratio of 14.3% and a CRD IV leverage ratio of 5.4% during the nine months ended 20 September 2018.
HSBC group chief executive John Flint 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.”