HSBC profits surge by 74%

Pre-tax profits at HSBC increased from $2.3 billion to $5.4 billion in the third quarter of the year.

In its latest financial results, the bank said that the 74 per cent hike in profits was driven by a release of expected credit losses and other credit impairment charges, as well as a higher share of profit from associates.

This included a $700 million release of cash that was built up during the pandemic to cover coronavirus related loans.

HSBC was close to offsetting the $785 million loan loss charge that was reported during the same period of 2020.

"We had a good third-quarter performance, with strong growth in profits supported by additional credit provision releases,” said Noel Quinn, group chief executive. “Our strategy remains on track, with good delivery in all areas.

“This was reflected in more consistent top-line growth, robust lending pipelines across our businesses, and rising trade and mortgage balances. While we retain a cautious outlook on the external risk environment, we believe that the lows of recent quarters are behind us. This confidence, together with our strong capital position, enables us to announce a share buyback of up to $2 billion, which we expect to commence shortly."

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