HSBC announced a 10% increase in pre-tax profit for Q3 2024, reaching $8.5 billion, driven by growth in its wealth management and global banking divisions. The London-based bank's revenue rose to $17 billion, up 5% year-on-year, while operating expenses were up 2% to $8.1 billion.
This profit growth follows a significant restructuring plan introduced by new CEO Georges Elhedery, who took the helm in September. HSBC plans to streamline its operations into four distinct segments: Hong Kong, UK, corporate and institutional banking, and international wealth and premier banking.
Elhedery emphasized that the restructuring aims to enhance leadership focus and market share in competitive areas, although it may lead to job reductions at senior levels. The bank will also increase total distributions to $18.4 billion this year, including a new share buyback of up to $3 billion.
Additionally, HSBC is set to complete the sale of its Argentina operations by the end of Q4 2024. The bank's shares in Hong Kong have appreciated approximately 11% since the beginning of the year, despite ongoing US-China tensions.