HSBC sees its profit growth slow

HSBC also warned of easing growth in emerging markets, where the group generates a large slice of its profits. But further falls in bad debts helped overall profits remain "well ahead" of a year earlier in the July-to-September quarter, although the bank did not provide detailed figures.

It said bad debts fell to their lowest levels since early 2007, before the credit crunch and financial crisis. HSBC's update echoed those of its US and UK competitors as it said investment banking activity had slowed in the third quarter against an unusually strong performance in 2009.

Pay and bonuses set aside for staff in the third quarter remained consistent with 2009 as a percentage of income, according to the group.

However, it revealed a 39 per cent hike in staff pay and bonuses in global banking and markets (GBM) division during the half year, to 1.5bn since the end of 2009.

The group is preparing for an overhaul at the top after news that chairman Stephen Green is quitting to join the Government as Minister of Trade and Investment, while chief executive Michael Geoghegan is to be replaced by investment banking boss Stuart Gulliver.

Mr Geoghegan, who is to step down by the end of next month, said he left the group with the "right strategy in place to navigate the economic uncertainty".

October trading was in line with the third quarter, he added.