Bank grows

Higher interest rates deliver HSBC profit boost

HSBC says growth is broad-based

HSBC said rising interest rates were behind a 240% lift in its latest quarterly profits to $7.7bn (£6.35bn), though the rise was in part due to a $2.3bn impairment in the same period last year and was still behind the $8.1bn expected by analysts.

The bank also announced a plan to buy back another $3bn of its shares and a third interim dividend payout this year of 10 cents per share, bringing the total to 30 cents per share in the year to date.

Noel Quinn, Group Chief Executive, said: “We have had three consecutive quarters of strong financial performance and are on track to achieve our mid-teens return on tangible equity target for 2023.

“There was good broad-based growth across all businesses and geographies, supported by the interest rate environment.

“Our Wealth business also gained further traction, attracting $34bn of net new invested assets in the quarter and growing wealth balances by 12% compared with last year. We are pleased to again reward our shareholders.

“We have now announced three share buy-backs in 2023 totalling up to $7bn, as well as three quarterly dividends which total $0.30 per share. This underlines the substantial distribution capacity that we have, even as we continue to invest in growth.”

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