HSBC's profits jump as the bank looks to Asia for growth

 
Helen Cahill
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HSBC grew profits in the third quarter (Source: Getty)

HSBC's third-quarter profits have jumped as the bank looks to Asia to fuel its growth.

The figures

For the three months to the end of September, HSBC reported quarterly profits of $4.6bn (£3.5bn), up 448 per cent from $843m at the same point last year.

Read more: HSBC appoints John Flint to succeed Stuart Gulliver as chief executive

Operating expenses for the period came in nine per cent lower year-on-year at $25bn.

At time of writing, HSBC's share price was up 0.31 per cent to 750.6p.

Why it's interesting

During the same period last year, HSBC faced a loss of $1.7bn due to the sale of its Brazilian arm. Its results have also been boosted by the bank's cost-cutting programmes, and its increased focus on Asia.

Outgoing chief executive Stuart Gulliver has started steering the bank towards Asia to take advantage of the continent's growing middle class. Newly-appointed boss John Flint will lead the bank's efforts in Asia when he takes up his post next February. Flint moves into the top spot after working as head of HSBC's retail and wealth management arm.

What HSBC said

Gulliver said: "We maintained good momentum in the third quarter, with higher revenue in our three main global businesses.

"We also continued to make good progress with the strategic action we set out in 2015. Our international network continued to deliver strong growth in the third quarter, and our pivot to Asia is driving higher returns and lending growth, particularly in Hong Kong."

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