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Pin to quick picksHSBC Holdings Share News (HSBA)

Share Price Information for HSBC Holdings (HSBA)

London Stock Exchange
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Share Price: 701.70
Bid: 701.30
Ask: 701.50
Change: -4.70 (-0.67%)
Spread: 0.20 (0.029%)
Open: 709.00
High: 710.50
Low: 701.10
Prev. Close: 706.40
HSBA Live PriceLast checked at -

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HSBC posts jump in third-quarter profit, but underlying numbers miss estimates

Mon, 02nd Nov 2015 07:16

(ShareCast News) - HSBC posted a better-than-expected 32% rise in third-quarter pre-tax profit thanks to the bank's cost-cutting programme and reduced fines, but underlying profit missed estimates.Third-quarter reported pre-tax profit came in at $6.10bn compared with $4.61bn in the same period last year, surpassing consensus expectations of around $5.2bn, as costs from regulatory fines fell by $1.4bn from 2014.Adjusted for exceptional items, pre-tax profit was down 14% on the year to $5.5bn missing consensus expectations by around 2%.Underlying revenue took a hit from the slowdown in Asia and falling equity markets in the region, dropping 4% from the third quarter of last year to $15.1bn.Nomura, which rates the stock at 'neutral', said "HSBC has missed on an underlying basis" and it expects the results to lead to downgrades.Still, HSBC insisted that slowing growth in Asia would not hurt its portfolio of loans there.Chief executive officer Stuart Gulliver said: "Despite slowing growth in the mainland Chinese economy and market volatility in Asia, there has been no visible impact on our Asian credit quality in 3Q15. "Our operating expenses were higher than the same period last year, as expected, although our cost programmes have started to gain traction. Our third quarter costs were lower than our second quarter costs."Operating costs in the period fell 19% from a year ago to $9bn while net operating income was down 4% to $15.1bn."Our cost-reduction measures are beginning to have an impact on our cost base. There is more to achieve on costs and we expect the measures we have already taken to have a further impact in the fourth quarter," Gulliver said.At 0925 GMT, HSBC shares were down 1.3% at 501.14p.
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