HSBC Q3 Profit Surges Amid Strategic Restructuring

HSBC reported better-than-expected third-quarter profits, with a pre-tax profit increase of 10% to $8.5 billion, surpassing analyst expectations of $7.6 billion. This performance was bolstered by strong growth in its wealth and wholesale banking divisions, alongside a strategic restructuring that involves dividing operations into eastern and western markets. Despite a $300 million hit from legacy capital repayment, the bank announced a $3 billion share buyback, leading to a 6-year high in its stock price. CEO Georges Elhedery emphasized that the restructuring does not signal an intent to split the bank, aiming instead to enhance operational efficiency. HSBC's operating expenses rose by 2% due to investments in technology and inflation impacts, and its CET1 capital ratio improved to 15.2%. Further details on the restructuring's cost savings are expected in February 2024.