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HSBC puts in a cheerful quarter

HSBC cheered up investors with a $2bn buyback programme, but otherwise the third quarter felt flat
HSBC puts in a cheerful quarter
  • Reserve releases turbocharge the reported numbers
  • Interest rate speculation is boosting the sector

In common with every other bank during the third quarter trading season, HSBC (HSBA) saw its reported pre-tax profits of $5.4bn (£3.9bn) boosted by a release of reserves put aside to cover bad debt provisions during the covid pandemic. The release added $700m to profits, reversing the $800m charge HSBC during the same period in 2020. The bank has roughly $1.2bn left of bad debt provisions that could potentially be reversed if economic conditions allow it. In addition, shareholders were cheered by the announcement of a $2bn share buyback scheme.

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