Our international network, access to high-growth markets and balance sheet strength deliver long-term value for customers and shareholders.
- Reported profit before tax down 18% to US$4.8bn
- Reported profit before tax in Asia up 4% to US$4.7bn in 3Q19, with a resilient performance in Hong Kong
- Customer lending up 7% and customer deposits up 5% compared with 3Q18 on a constant currency basis
- Commercial Banking and Retail Banking performed well compared with 3Q18
- Global Banking and Markets performance reflected low levels of client activity in Global Markets; transaction banking franchises delivered a resilient performance
- Continued strong capital levels, with common equity tier 1 (‘CET1’) ratio of 14.3%, including the completion of a US$1bn share buyback
Group Chief Executive Noel Quinn outlines his confidence in the bank’s future despite a challenging third quarter.
Noel Quinn, Group Chief Executive, HSBC (duration 2:37)
Parts of HSBC, especially Asia, held up well in a challenging revenue environment in the third quarter. This underlines the value of the bank’s strategy and the underlying strength of its business model.
HSBC’s competitive advantages include its international network, heritage in Asia and the world’s faster-growing markets, and global transaction banking capability. It is uniquely placed to connect large multinationals and mid-market entrepreneur-owned businesses to the world. This is underpinned by powerful and profitable retail banking and wealth management businesses in the bank’s biggest markets.
However, other parts of HSBC are delivering returns below the expectations of senior management. These include:
- Our Continental Europe business and the UK non-ring-fenced bank, particularly in Global Banking and Markets
- The US, particularly in Global Banking and Markets and Retail Banking
While having a strong presence in both continental Europe and the US is important to HSBC, senior management are planning urgent action to reshape the bank’s presence in both and redeploy capital to higher-growth, higher-return opportunities. In addition, they will act to adjust the cost base of HSBC and remove some of the complexity of head office. They intend to sustain the dividend and maintain a CET1 (Common equity tier 1) ratio of above 14 per cent.
The bank will update the market on these actions and set out new financial targets alongside its full-year results in February 2020.