IBOS member HSBC has announced their financial earnings for Q3 2016, ended 30 September 2016, in a report released on 7 November 2016.
HSBC has reported a net income of $1,150 million for the third quarter of 2016. In Q3, profit before tax was 7% higher than Q3 2015, reflecting an increase in revenue and lower costs, partly offset by an increase in LICs.
Stuart Gulliver, HSBC Group Chief Executive, commented:
“Our third-quarter performance reflected the strength of our network and the deepening impact of our strategic actions. We generated a further $57bn of RWA savings in the third quarter, $40bn of which came from the sale of our Brazil business. We are now more than 80% of the way to achieving our RWA reduction target.”
Below are the highlights of HSBC’s third quarter 2016 results, compared to Q3 2015:
- Further reduction in RWAs through the completion of Brazil disposal and other management actions
- Reduction in Q3 2016 operation expenses on both a reported and adjusted basis to $8.7bn and $7.2bn respectively
- Positive adjusted jaws of 5.6% for Q3 2016, and 1.5% for 9M16
- Increased market shares in a number of key markets and international product areas, including trade finance in Hong Kong and Singapore
- Share buy-back programme now 59% complete and expected to finish in late 2016, or early 2017
- Adjusted profit before tax (PBT) in Q3 2016 of $5.6bn, up 7%; reported PBT of $843m
- Adjusted revenue in Q3 2016 of $12.8bn, up $0.3bn from increases in client-facing GB&M (+11%) and Principal RBWM (+9%); reported revenue in 3Q16 of $9.5bn, down $5.6bn reflecting the impact of significant items
- Adjusted PBT of $16.7bn in 9M16, down 6% or $1.0bn; reported PBT of $10.6bn
- Strong capital base with CRD IV end point CET1 ratio 13.9%, up from 12.1% at 30 June 2016, mainly due to a change in regulatory capital treatment of BoCom
Access the full report, via HSBC’s website, here.