HSBC Holdings 3Q Net Profit Falls, Missing Expectation
October 28 2019 - 1:03AM
Dow Jones News
By Yifan Wang
HSBC Holdings PLC (0005.HK) said third-quarter net profit fell
24% from a year earlier because of "challenging market
conditions."
The U.K. banking giant on Monday reported net profit of $2.97
billion. A Factset poll of analysts had tipped a net profit of
$3.96 billion for the quarter.
Third-quarter revenue was down 3.2% on year at $13.36 billion,
it said.
Adjusted profit before tax fell 12% on year to $5.35 billion,
excluding foreign-exchange differences and significant items.
While its Asian business "held up well in a challenging
environment," performance in Europe was "not acceptable," said Noel
Quinn, HSBC's Group Chief Executive.
Third-quarter net interest income declined 1.4% on year to $7.57
billion, the bank said, while operating profit was down 19% on year
at $4.33 billion.
The bank said the revenue environment is more challenging than
in the first half of this year and that part of its portfolio
weren't delivering acceptable returns.
HSBC said that it expects significant charges in the fourth
quarter and "subsequent periods" including possible impairment of
goodwill and additional restructuring charges.
"We will act to rebalance our capital away from low-return
businesses and adjust the cost base in line with the actions we
take," HSBC said.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
October 28, 2019 00:48 ET (04:48 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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