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More on HSBC Q3: Underlying revenue flat

  • HSBC's (HBC) underlying revenue flat at $15.59B; overall revenue +3.5% to 15.08B.
  • U.K. and Hong Kong markets contributed over half of HSBC's underlying pretax profit.
  • Underlying operating expenses -4% to $9.57B.
  • Achieved $400M of cost cuts, taking the annualized total to $4.5B since the start of 2011, which is ahead of plan.
  • Loan impairment charges and other credit risk provisions $1.59B vs 1.72B a year earlier.
  • Compensation for U.K. customers $428M.
  • Restructuring and other related costs $158M.
  • Core tier 1 ratio 13.3%
  • Outlook: "We see reasons for optimism with some evidence of a broadening recovery." (Previous) (PR)
Comments (1)
  • vtorch
    , contributor
    Comments (291) | Send Message
     
    "U.K. and Hong Kong markets contributed over half of HSBC's underlying pretax profit."

     

    Reported profit before tax = US$18,601 mm
    UK reported profit before tax = US$2,426 mm (13%)
    Hong Kong reported profit before tax = US$6,277 mm (33%)
    Asia (ex-Hong Kong) reported profit before tax = US$6,585 mm (35%)

     

    Asia as a region contributed to almost 70% of the group's profit before tax. I feel that management is trying to make the UK market sound more important than it actually is, an in attempt to justify the indefensible - that the UK is the center of power, and UK bankers are grossly overpaid, while Asia is the profit generator. Time for a breakup?
    4 Nov 2013, 10:20 AM Reply Like
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