HSBC has more than doubled its pre-tax profits to $7.7 billion in its third quarter ended 30 September.

However, while the figure eclipsed profits before tax of $3.2 billion in the same quarter of 2022, it is understood to have fallen short of analyst forecasts of $8.1 billion.

Commenting that profits were below expectations, Jefferies analyst Joe Dickerson told Reuters “costs are likely to be the area of controversy.”

Operating expenses clocked in at $8 billion for the quarter – two per cent higher than the third quarter of 2022.

HSBC said the rise was primarily due to higher technology costs, the impacts of rising inflation and an increase in the performance-related pay accrual.

The quarter also saw a 40 per cent rise in revenue by $4.7 billion to $16.2 billion with the bank commenting that the higher interest rate environment “supported growth in net interest income in all of our global businesses, and non-interest income increased.”

“We have had three consecutive quarters of strong financial performance and are on track to achieve our mid-teens return on tangible equity target for 2023,” said HSBC group chief executive Noel Quinn.

Quinn added that HSBC had now announced three share buy-backs in 2023 totalling up to $7 billion and three quarterly dividends totalling $0.30 per share.

“This underlines the substantial distribution capacity that we have, even as we continue to invest in growth,” he added.

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