HSBC announced a US$3 billion stock buy-back after the new CEO of Hong Kong’s biggest currency-issuing bank delivered a set of financial results that beat market estimates, buoyed by growth in its wealth and personal banking divisions.
Net profit rose 9 per cent to US$6.13 billion under international accounting rules in the quarter that ended on September 30, beating market forecasts to grow for the first time in four quarters. Total revenue increased by 5 per cent to US$17.21 billion.
“We delivered another good quarter, which shows that our strategy is working”, CEO Georges Elhedery said after delivering his first set of results since his promotion on September 2. “There was strong revenue growth and good performances in wealth and wholesale transaction banking. ”
Strong contributions from wealth and private banking underscore Elhedery’s restructuring since he took over from Noel Quinn. Effective January 1, the bank’s four business lines will be: Hong Kong, the UK, corporate and institutional banking, and wealth and premier banking. HSBC said it is pursuing the restructuring to achieve greater operational efficiency and growth.
Last week, the lender said it was appointing Pam Kaur, currently the chief risk and compliance officer, as its first female chief financial officer.