Group-wide performance accelerated this quarter and we’re well-positioned for growth.
- Reported profit before tax increased 76% this quarter compared with 3Q20 with profit generation across all regions
- Strong capital position and an announced share buy-back programme of up to $2bn
- Compared with 2Q21, net interest income was stable with good fee growth; robust lending pipelines, growth in trade and mortgage balances
- Accelerated sustainable finance support to clients to help achieve the transition to net zero
- Risk-Weighted Asset reductions are on track to meet FY22 target of $110bn
Reported profit before tax by region in 3Q21 ($m)
“We had a good third-quarter performance, with strong growth in profits supported by additional credit provision releases. Our strategy remains on track, with good delivery in all areas. This was reflected in more consistent top-line growth, robust lending pipelines across our businesses, and rising trade and mortgage balances.
“While we retain a cautious outlook on the external risk environment, we believe that the lows of recent quarters are behind us. This confidence, together with our strong capital position, enables us to announce a share buyback of up to $2bn, which we expect to commence shortly.”
Noel Quinn, HSBC Group Chief Executive
25 October 2021
Our global businesses grew their customer accounts from the previous quarter with strong deposit performance without any material drawdown on the liquidity that’s built up over the last two years. Overall balances grew by $96bn from 3Q20.
In Wealth and Personal Banking, we continued to grow Net New Money in Private Banking and Asset Management, mainly in Asia. We also saw promising growth with UK mortgages.
The revenue outlook is becoming more positive, with fee growth across many of our businesses and a stabilisation of net interest income, which we expect to begin to increase in the coming quarters from lending growth and earlier than anticipated policy rate rises.
We’ve demonstrated strong cost control in the past year while increasing our technology spending and investments.
We’re executing our strategy with pace and made some important announcements in the quarter, including our first major purchase in a decade - the acquisition of AXA Singapore.
This complements our existing Singapore business and accelerates the build-out of our product and distribution capabilities in one of the world’s most important Wealth markets.
Pre-COP26, we’ve been working incredibly hard with clients, governments and our industry peers to accelerate the low-carbon transition.
In terms of the financial industry’s contribution, the Sustainable Markets Initiative Financial Services Taskforce (FSTF) – chaired by our Group Chief Executive - just released a guide for banks on setting and delivering net zero targets. This will enable banks to operationalise the targets they’ve set and make their transition a reality.
Despite inflationary cost pressures, we remain committed to our medium term targets to achieve both returns at or above our cost of capital and to fund attractive growth and capital returns.