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HSBC Says Net Income Rises 66%


HSBC Holdings Plc, Europe’s largest bank by market value, said third-quarter net income rose 66 percent, helped by accounting gains on the value of its own debt.

Net income increased to $5.22 billion from $3.15 billion a year-earlier, the lender said in a statement today. That beat the $3.84 billion median estimate of eight analysts surveyed by Bloomberg.

 

“The outlook for the global economy is very challenging as problems in developed markets begin to affect growth rates around the world.,” the company said. “Faster-growing markets clearly possess significant potential for growth, however, and continue to offer attractive business opportunities.”

 

HSBC, the last of the five biggest U.K.-based banks to report earnings, pledged in August to eliminate 30,000 jobs and retreat from less profitable consumer-banking markets as part of plans to remove as much as $3.5 billion of costs and prepare for tougher capital rules. HSBC, which earns more than two thirds of its profit from emerging markets, is in talks to sell its U.S.cards business to Capital One Financial Corp., the bank said in August.

Source: Bloomberg