HSBC reports third quarter 2017 earnings – CNBC.com – CNBC


“I think on a year-on-year basis there will be multiple jumps on profit because of the low base last year, which was, in turn, caused by a one-off expense last year. But on a quarterly basis, the third-quarter profit will probably be lower than the second quarter due to decline in income and some jump in the provisions for bad loans,” Ivan Li, research director at DBS Vickers Hong Kong, told CNBC before the release.

The bank’s third quarter 2016 reported pre-tax profit came in at $843 million and adjusted revenue was at $12.8 billion. In the first half of this year, the bank beat estimates with a pre-tax profit of $10.24 billion and revenue of $26.1 billion — a performance that helped HSBC shares climb in all three listings.

HSBC’s latest financial statement showed once again the company’s ability to pick itself up after the global financial crisis. In addition to shifting its focus to Asia, the bank also scaled back some of its operations, including selling its Brazilian business.

The bank has also been able to maintain its capital buffers and dividends despite multiple rounds of share buyback programs.

Gulliver, instrumental in that turnaround, will step down as CEO in February next year. He will be replaced by John Flint, currently head of the bank’s retail and wealth management arm, the company said earlier this month.

The announcement came just days after former AIA chief executive Mark Tucker took over the role of HSBC’s chairman, replacing Douglas Flint.

Notwithstanding the management changes, HSBC will press on with its current growth momentum driven by its Asian strategy, group finance director Iain Mackay told CNBC. The bank’s pivot to the region is centered around China’s Pearl River Delta, where it has committed billions in investments.

“This is a market that is extremely important to us, we’ve seen good growth coming through over the course of the last 12 months … This is an important area to us, we’ll continue to invest there and hopefully continue to grow and see profitability build,” Mackay said.

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