HSBC announces new $3 billion share buyback as third-quarter earnings beat expectations

Europe's largest lender HSBC It announced on Tuesday that it would repurchase up to $3 billion in shares as it issued a third-quarter earnings report that beat analysts' estimates, with strong revenue growth as well as growth by its wealth and personal banking divisions.

Here's HSBC's results compared to LSEG SmartEstimate, which relies on more consistently accurate analyst forecasts:

• Pre-tax profit: $8.5 billion vs. $8 billion
• Revenue: $17 billion vs. $16.2 billion

HSBC's pre-tax profit represented a 10% increase from the $7.71 billion posted a year ago. After-tax profit came in at $6.7 billion, up $500 million from the third quarter of 2023.

The company's quarterly revenue increased by 5% to $17 billion, up from $16.2 billion reported a year ago

The bank's new $3 million share buyback brings the total amount announced this year to $9 billion — $3 billion was announced in the first quarter and another $3 billion in the second quarter. The company added that its board also approved a third interim dividend of $0.1 per share.

Net interest margin, a measure of lending profitability, fell 24 basis points to 1.46% from 1.70% a year ago. This is lower than the average broker estimate of 1.56%.

Basic earnings per share for the quarter came in at 34 cents, up from 29 cents in the same period a year ago.

The earnings report comes a week after HSBC unveiled plans to restructure into four business units: Hong Kong, UK, International Wealth and Premier Banking and Corporate and Institutional Banking, in a major shake-up that saw the appointment of its first female finance chief.

HSBC has pledged to streamline its businesses to “reduce duplication of processes and decision-making”. HSBC boss Georges Elhedary said the new structure will come into effect in January and “will result in a simpler, more dynamic and agile organisation.”

This is a breaking news story. Check back later for updates.