HSBC shares: relief rally loses steam after mixed Q3
HSBC Holdings pre-tax profit more than doubled in the third quarter, as higher interest rates boosted the bank's profitability, but the number missed estimates.
Pre-tax profit rose to $7.7 billion, compared to $3.2bln in the same quarter last year. It also helps the bank fund a fresh $3 billion share buyback. HSBC aims to complete the share buyback by next February, lifting the total buybacks announced this year to $7 billion.
(AI Video Transcript)
HSBC's profits
HSBC recently announced its financial results for the third quarter. The bank's pre-tax profits more than doubled from the same period last year, reaching $7.7 billion. Although this was slightly lower than expected, HSBC plans to use its profits to buy back $3 billion worth of shares and has proposed a dividend of $0.10 per share.
HSBC's share price chart
HSBC's share price chart shows a peak in the long term, reaching levels not seen since July 2019. However, there has been a slight decrease in the share price recently due to concerns about the bank's exposure to China. Despite these concerns, HSBC's earnings report revealed no issues and actually highlighted the bank's benefit from higher interest rates, resulting in a larger net interest margin. The share price has since climbed back up and is currently finding support at 576 pence per share, which is similar to the lows experienced in early September. The upper range of the share price sits at the highs observed on July 9th, reaching 675 pence per share.
HSBC's earnings report
Overall, HSBC's strong earnings report has led to gains in the London markets. Investors are pleased with the bank's performance, as it has shown significant profit growth and plans to reward shareholders through share buybacks and dividends. This demonstrates that HSBC is a profitable and stable bank.
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