HSBC announces surprise 74% rise in profits and $2 billion buyback -Breaking
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© Reuters. FILE PHOTO A protective mask-wearing man walks by the logo of HSBC’s headquarters amid the COVID-19 outbreak in Kuala Lumpur (Malaysia), September 9, 2020. REUTERS/Lim Huey Teng/File PhotoLawrence White and Anshuman Daga
SINGAPORE/LONDON – HSBC Holdings reported a 74% increase in its third quarter profits, exceeding market expectations. The Asia-focused bank also released cash to cover bad loans not realized.
For the quarter ended September, the bank reported pretax profit $5.4 billion. This compares to the $3.1 billion a previous year and the estimate of the 14 analysts at HSBC of $3.78billion.
HSBC has also announced a $2 billion share buyback. It continues to return surplus capital to shareholders rather than investing in cash.
HSBC released the $700million in cash that it had saved in case bad pandemic loans rose, as opposed with $800 million it paid in anticipation of these soured debts a year earlier.
According to the bank, economic conditions are improving and loans are performing better than anticipated.
The bank, which is based in London, has similar results to other banks such as Citigroup (NYSE:) are riding a M&A boom, while fending off weakness in the lending business.
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