HSBC reigns costs to beat expectations

Monday, 29th October 2018 09:13 - by Rajan Dhall

This morning global banking giants HSBC report their Q3 2018 performance. Here are the highlights:

Reported profit before tax for 9M18 of $16.6bn was 12% higher than for 9M17, Adjusted profit before tax of $18.3bn was 4% higher than for 9M17

Reported revenue for 9M18 of $41.1bn was 5% higher, notably driven by a rise in deposit revenue across our global businesses. Adjusted revenue of $41.4bn was 4% higher.

Reported profit before tax for 3Q18 of $5.9bn was 28% higher than for 3Q17, reflecting strong revenue growth and lower operating expenses. Adjusted profit before tax of $6.2bn was 16% higher.

It seems this report could be enough to stem the losses and make 600p the major support level. The current price action on the weekly chart does not look too positive but this report could provide the impetus for a turnaround. On the upside look out for the wave low at 643p as it could provide some resistance and also above that the 665p resistance which has been used a few times but most notably in April 2015 on the left-hand side of the chart. Either way, longer term, a confirmation of a move higher would be a break of 727p to the upside as it would make another wave high on the weekly chart.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.