HSBC Holdings' Net Profit More Than Doubled in 3Q
October 25 2021 - 12:57AM
Dow Jones News
By Yifan Wang
HSBC Holdings PLC's third-quarter net profit more than doubled
from a year earlier, sustaining the strong earnings momentum poster
so far this year as the bank continued to release allowances for
expected credit losses amid rising vaccination rates and an
improving economic outlook.
Net profit surged to $3.54 billion in the quarter from $1.36
billion in the year-ago period, the Asia-focused lender said
Monday. The result beat analysts' expectations in a FactSet
poll.
Revenue rose 1.0% to $12.01 billion, mainly driven by a
favorable foreign-currency translation effect.
The lender also announced a share-buyback program of up to $2
billion thanks to an optimistic business outlook and a strong
capital position.
"While we retain a cautious outlook on the external risk
environment, we believe that the lows of recent quarters are behind
us," Group Chief Executive Noel Quinn said.
Looking ahead, the bank expects pressures on its lending
business to abate as economies continue recovering and central
banks start raising policy rates.
Amid investor concern over China's real-estate sector, HSBC said
it has no direct credit exposure to developers in the "red"
category, and limited exposure to clients categorized as "orange."
The terms refer to Beijing's color code system for property
company's liquidity concerns.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
October 25, 2021 00:42 ET (04:42 GMT)
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