HSBC Beats Profit View, Books Madoff Provision

Europe’s largest lender HSBC beat quarterly profit expectations, posting $7.3 billion in pre-tax profit for the three months to September versus a $5.98 billion consensus, even as profit fell nearly 14% year on year on higher costs. Revenue reached $17.8 billion. The bank booked $1.4 billion in legal provisions, including $1.1 billion tied to Bernard Madoff-related claims, and will pursue further appeals in Luxembourg. Net interest income rose 15% to $8.8 billion; the Madoff provision will trim the CET1 ratio by about 15 bps. HSBC also outlined plans to take Hang Seng Bank private.

Reviewed by JQJO team

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