On Tuesday, HSBC announced a 10% year-on-year increase in pre-tax profit for Q3, reaching $8.5 billion. The rise reflects significant growth in its wealth management division and solid performance in global banking and markets. This financial momentum follows last week’s announcement of an organizational revamp under newly appointed CEO Georges Elhedery, who took the helm in September.
“We delivered another good quarter, which shows that our strategy is working,” Elhedery commented in the earnings release, highlighting the bank’s consistent focus on growth across key business segments.
In line with its investor-focused strategy, HSBC raised its total distribution for the year to $18.4 billion and announced an additional share buyback program of up to $3 billion. This initiative reflects HSBC’s commitment to returning value to shareholders as it optimizes its global operations.
The bank also confirmed that the sale of its Argentina business, first disclosed in April, remains on track for completion in Q4.
Under the new structure, HSBC will simplify into four distinct segments starting next year: Hong Kong, UK, “corporate and institutional banking,” and “international wealth and premier banking.” According to Elhedery, this realignment is intended to sharpen HSBC’s focus on high-growth areas where it has competitive advantages, while reducing redundancies, particularly at senior levels. Bloomberg reported that Chief Risk Officer Pam Kaur will assume the role of Chief Financial Officer on January 1, marking the first time a woman has held this position in HSBC’s 160-year history.
HSBC, with a primary revenue base in Asia, has been pivoting to the region in recent years, committing to strengthen its wealth management business and capitalize on expanding markets. However, as geopolitical tensions rise between the U.S. and China, the bank continues to navigate pressures, including last year’s call from major shareholder Ping An to separate its Asia assets—a proposal ultimately declined.
As the largest lender straddling East and West, HSBC’s ongoing transformation aims to position it as a more focused, agile bank, well-equipped for future growth.
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