HSBC’s Profit Tops Estimates, One-time Items Weigh on Bottom Line
HSBC Holdings Plc on Monday reported third-quarter underlying profit that beat analysts’ estimates but overall profit was weighed by the impact from the sale of its Brazilian business.
The Europe’s largest bank said its adjusted pretax profit, which excludes one-time charges, rose 7 percent from a year earlier to $5.59 billion, thanks to attempts of Chief Executive Officer Stuart Gulliver to pare costs and bolster the lender’s capital cushion. In three months to September, the bank’s adjusted revenue added 2.4% to $12.79 billion with adjusted operating costs dropping 3.5% to $7.25 billion.
However, HSBC’s overall profit swung to a loss of $204 million from a year-earlier profit of $5.23 billion, due in part to a $1.74 billion loss from the disposal of its operations in Brazil which was sold to Banco Bradesco S.A. in July.
HSBC shares have rallied more than 11% since August, when it announced a plan to spend up to $2.5 billion in the second half to repurchase shares. The U.K. banking giant said it had completed 59% of its share-repurchase plan, which is expected to conclude in late 2016 or early 2017.
HSBC Trade suggestion
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