2023-10-30 04:00Financial Performance - HSBC reported a pre-tax profit of $29.4 billion for the first nine months of 2023, an increase of $17.8 billion or over 100% compared to the same period in 2022[11]. - Total revenue for the first nine months of 2023 reached $53.0 billion, reflecting a 51% increase from $35.2 billion in the same period of 2022[11]. - The bank's pre-tax profit for Q3 2023 was $7.7 billion, an increase of over 100% from $3.2 billion in Q3 2022[5]. - The total pre-tax profit for the nine months ended September 30, 2023, was $29,371 million, significantly up from $11,528 million in the same period of 2022[62]. - For the first nine months of 2023, HSBC reported a pre-tax profit of $29.4 billion, an increase of $17.4 billion compared to the same period in 2022[68]. - The adjusted profit before tax for the first nine months was $29.4 billion, up $17.4 billion, driven by increased net interest income and the reversal of a $2.3 billion impairment related to the planned sale of the French retail banking business[92]. Revenue Growth - Net interest income for the first nine months of 2023 was $27.5 billion, up $6.1 billion or 29% year-over-year, driven by rising average market interest rates[12]. - Total revenue for the first nine months of 2023 was $22.9 billion, an increase of $8.9 billion, representing a growth rate of 64% driven by expanded net interest income and increased loans[42]. - Wealth management revenue reached $5.815 billion for the first nine months of 2023, compared to $5.172 billion in the same period of 2022, reflecting a growth of 12.4%[19]. - Global payment solutions revenue increased to $9,166 million, up over 100% compared to $4,320 million in the same period last year[44]. - The acquisition of UK Silicon Valley Bank contributed a one-time gain of $1,593 million, significantly impacting overall revenue[44]. Operating Expenses - Operating expenses for the first nine months of 2023 were $23.4 billion, a slight decrease from $23.4 billion in the same period of 2022[11]. - Operating expenses for the first nine months of 2023 were $23.425 billion, a decrease of 2% from $23.920 billion in the same period of 2022[28]. - Adjusted operating expenses were $8 billion, reflecting a 2% increase, mainly due to rising technology costs and performance-linked compensation, although restructuring costs decreased[92]. Credit Losses - Expected credit losses increased to $2.4 billion for the first nine months of 2023, compared to $2.2 billion in the same period of 2022[11]. - Expected credit losses were $2.416 billion for the first nine months of 2023, compared to $2.155 billion in the same period of 2022, reflecting an increase of $261 million or 12%[28]. - The expected credit loss provision for Q3 2023 remained largely unchanged, with specific provisions related to the commercial property sector in mainland China[25]. Asset Management - Total assets as of September 30, 2023, amounted to $3 trillion, a decrease of $21 billion from June 30, 2023, with a negative impact of $59 billion from currency translation[16]. - Customer loans decreased to $900 billion, down $24 billion, with a negative currency translation impact of $19 billion; excluding this, customer loans decreased by $5 billion[16]. - Customer accounts totaled $1.6 trillion, a decrease of $33 billion, with a negative currency translation impact of $31 billion; excluding this, customer accounts decreased by $2 billion[16]. Shareholder Returns - HSBC announced a total of $7 billion in share buybacks and declared quarterly dividends totaling $0.3 per share in 2023[2]. - The company aims for a dividend payout ratio target of 50% for 2023 and 2024, excluding significant items[48]. - The board declared a third interim dividend of $0.10 per share and plans to repurchase up to $3 billion of shares[100]. Strategic Initiatives - The company plans to sell its retail mortgage portfolio in New Zealand, which will result in $800 million being reclassified as held for sale[16]. - The company plans to acquire Citibank's retail wealth management business in mainland China, which includes approximately $3.6 billion in managed assets and deposits[68]. - The company is focused on transitioning to net-zero carbon emissions and is implementing related policies and processes[69]. Market Conditions - The company anticipates a cautious short-term outlook on loan growth, with a projected annual increase of approximately 5% in the medium to long term[16]. - The company expects net interest income to exceed $35 billion for 2023, with a cost of funds for generating trading and fair value income exceeding $7 billion[63]. - Anticipated credit loss provisions are expected to average around 40 basis points of total loans for 2023, reflecting ongoing monitoring of risks in the commercial property sector in mainland China[64].