HSBC, the largest European bank by assets, recorded an attributable net profit of US$10,202 million (€10,353 million) in the first nine months, 5.7% less than in the same period in 2021, it was announced today,
In November 2021, HSBC Continental Europe signed a framework agreement with “My Money Group” and its subsidiary Banque des Caraïbes in relation to the planned sale of the bank’s retail banking business in France, to be completed in the second half of 2021. 2023, for which HSBC recognized an impairment estimated at USD 2,400 million (EUR 2,435 million).
HSBC’s revenues through September were $36,852 million (€37,397 million), 1.9% less than the bank’s revenues a year earlier, due to a 16.9% increase in net interest income to 23,032 million dollars (23,372 million euros) and a drop in income from fees and commissions, which fell by 11.5% to 8,847 million dollars (8,978 million euros).
The decline in revenues in the quarter reflected a negative impact of USD 2,100 million (EUR 2,131 million) from the adverse currency impact and the alleged asset depreciation following the planned divestment of retail banking operations in France, partially offset by an increase in 3,300 million dollars (3,349 million euros) of net interest income.
Between July and September, net profit attributable to HSBC reached USD 1,913 million (EUR 1,941 million), 46% less than a year earlier, while the bank’s turnover fell 3.3% to USD 11,616 million ( 11,788 million euros).
Third quarter net interest income grew 29.8% to $8,581 million (€8,708 million), while fee and commission income declined 16.2% to $2,783 million (€2,824 million).
“Our strategy has delivered good organic growth across all three global businesses, and net interest income has increased due to rising interest rates,” said HSBC Executive Chairman Noel Quinn.
“We are focused on executing our plans and achieving our target of returning at least 12% by 2023 and, as a result, higher distributions to our shareholders,” he added.
Looking ahead, HSBC’s earnings outlook remains positive and the bank has improved its net interest income guidance for 2022 as a whole to $32,000 million (€32,473 million), given the current market consensus on rates. interest rates from central banks.
However, for 2023, it expects net interest income of at least USD 36,000 million (EUR 36,532 million), against USD 37,000 million (EUR 37,547 million) in the previous projection, reflecting the impact of the sterling depreciation against to the dollar and higher financing costs in the trading book.
MC // CSJ
