HSBC Holdings Plc. releases its 3rd Quarter Earnings

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Jan 02, 2020, 11:15 EST

Jan 02, 2020, 11:15 /Comserve / -- Commercial Banking and Retail Banking Segments experienced significant revenue growth in the 3Q 2019 results of HSBC

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HSBC Holdings plc released its earnings report for the 3rd quarter of 2019. The company reported a 4% hike in the profit before tax to USD 4.7 billion in Asia in 3Q19, with a robust growth in the Hong Kong region. There was a substantial growth in loans as well as advances to customers and their accounts, which increased by 4% and 2% respectively and by 7% and 5% based on constant currency as compared with 3Q18.

The banking company sustained the momentum in its Global Private Banking sector with new net money of USD 19 billion in September 2019. However, despite the sturdy performance delivered by the company’s transaction banking franchises, the performance of Global Banking and Markets (GB&M) continued to retrieve low degrees of client activity in the Global Markets. The adjusted revenue of GB&M for 3Q19 in the Asia region represented more than 50% of total GB&M adjusted revenue as it increased by 9% in contrast with that of the previous year.

As compared to the 3rd quarter of 2018, the 3Q19 results observed a 24% decrease in profit attributable to ordinary shareholders which came down to USD 3.0 billion. The reported profit before tax also decreased by 18% to USD 4.8 billion including added USD 606 million for customer redress provisions and USD 120 million of severance costs.

HSBC further stated that due to the increasingly challenging revenue environment than in the first six months of 2019, the company does not expect to reach the target return on tangible equity (RoTE) of more than 11% in the year 2020. Further, the corporation plans to adjust the capital by rebalancing it away from businesses generating low returns. For this, the capital and resources will be redeployed into other opportunities with exhibiting higher return and growth.

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