HSBC’s new CEO, Georges Elhedery, stated that he has no intention of splitting up the banking giant, which reported a $800 million (£600 million) increase in pre-tax profits, reaching $7.7 billion (£5.9 billion) for the third quarter.
Last week, Elhedery introduced a major restructuring of the British Universal Bank, dividing operations into East and West regions, sparking concerns that this could reduce oversight of its activities in China and Hong Kong. However, he clarified that this strategic shift “does not signal an intention to split the group,” as gains in foreign exchange, equities, global markets, and revenue growth in wealth and personal banking drove the latest profit growth.
Despite reporting a net interest income of $7.6 billion (£5.8 billion), which dropped by $1.6 billion (£1.2 billion) year-over-year, HSBC attributed this decline to higher business disposals, increased interest expenses on liabilities, and a loss on the early redemption of legacy securities.
The bank also announced a new share buyback program of up to $3 billion.
Elhedery stated, “HSBC is a highly connected, global business, and the plans we outlined last week aim to strengthen our leadership and market share in key areas, deliver top-tier products and services to our customers, and build a simpler, more dynamic, and agile organization with clearer accountability and faster decision-making.”
He added that the implementation of these plans would begin immediately, with further details to be shared in a business update alongside the full-year results in February.
