Media365
HSBC Holdings, the largest banking group in Europe and Hong Kong by assets, reported a 25 per cent decline in third-quarter profits on Tuesday as a result of lower interest rates and provisions made for commercial property and lawsuits related to the Bernard Madoff fraud case.
Pre-tax profit dropped 14 per cent from a year earlier to US$7.3 billion, lower than analyst estimates of US$7.66 billion.
During the quarter, HSBC took US$1 billion of expected credit losses, similar to a year earlier. The exposure includes US$200 million in charges related to the commercial real estate market in Hong Kong. The rest is from the Middle East and the UK.
The bank, which is celebrating the 160th anniversary of its establishment in Hong Kong, will pay a quarterly dividend of 10 US cents per share.
“We are becoming a simple, more agile, focused bank, built on our core strengths,” said CEO Georges Elhedery in a stock exchange filing. “The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters.
