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HSBC's third-quarter profit drops 14%, but beats expectations on higher revenue, interest income
HSBC's third-quarter profit reached $7.3 billion despite a $1.1 billion provision from the Bernard Madoff fraud case, supported by revenue growth and strong wealth management performance.
- Following the court ruling last Friday, HSBC Holdings plc reported profit before tax of $7.3 billion for the three months ended in September and revenue of 17.8 billion US dollars.
- Following a Luxembourg court decision, HSBC revealed on Monday it would set aside $1.1 billion after the court rejected part of its appeal in a Herald Fund SPC case.
- Operating costs rose nearly 24% to 10.1 billion US dollars, driven by legal provisions of $1.4 billion largely tied to the Madoff lawsuit.
- Shares in HSBC lifted 3% on Tuesday, the bank said the charge will trim its Common Equity Tier 1 capital ratio by roughly 15 basis points, and finance director Pam Kaur called the charges `very disappointing`.
- From January 2025, reporting will be reorganised into four main businesses, and the bank is reviewing exposure to smaller banks and hedge funds while Georges Elhedery said it remains `fully focused on helping our customers navigate new economic realities`.
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HSBC third-quarter profit slides 14% on legal charges but lifts income outlook
HSBC Holdings reported a 14% decline in third-quarter pretax profit on Tuesday, hurt by a $1.1 billion charge after losing part of an appeal in a long-running lawsuit tied to Bernard Madoff's Ponzi scheme, history's biggest-ever such fraud.
·United Kingdom
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Total News Sources13
Leaning Left1Leaning Right0Center7Last UpdatedBias Distribution87% Center
Bias Distribution
- 87% of the sources are Center
87% Center
13%
C 87%
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