HSBC in 28 per cent profit increase

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HSBC has reported a rise in third quarter profit, driven by a strong showing from its retail and wealth management units.

The lender booked a 28% increase in profit before tax to 5.9 billion US dollars (£4.5 billion) in the three months to September 30, reflecting strong revenue growth and lower operating expenses.

The results, which beat expectations, also showed that on an adjusted basis, pre-tax profit jumped 16% to 6.2 billion US dollars (£4.8 billion).

New chief executive John Flint, who took over as top dog in February, said: “These are encouraging results that demonstrate the revenue potential of HSBC.

“We are doing what we said we would - delivering growth from areas of strength, and investing in the business while keeping a strong grip on costs.

“We remain committed to growing profits, generating value for shareholders and improving the service we offer our customers around the world.”

HSBC cited growth in current accounts, savings and deposits while wealth management saw higher investment revenue, reflecting increased investor confidence.

The lender has been grappling with cost control, and showed some success on that front, reporting a 7% fall in operating expenses for the period.

HSBC is Europe’s biggest bank, but earns most of its profits from Asia.

Last year, it completed a corporate overhaul to raise profitability by focusing more on high-growth Asian emerging markets while shedding businesses and workers in other countries.