HSBC: Financial results, share buybacks and restructuring

HSBC, $HSBC Europe's largest lender, reported a pre-tax profit of USD 8.5 billionbeating expectations and delivering a 10% increase on the same period last year. These figures were boosted by revenue growth in the property and personal banking divisions. The company also announced a new share buyback program worth USD 3 billionbringing the total repurchase volume for the year to $9 billion. In addition, the board of directors approved a third interim dividend of USD 0.1 per share.

Net Interest Margin and Share Growth

HSBC $HSBC's net interest margin fell slightly from 1.7% to 1.5%, but third-quarter basic earnings per share came in at 34 cents, beating last year's 29 cents. The result contributed to the stock rising 3.5% on the Hong Kong stock exchange after the results were announced.

Technology investment and management changes

HSBC $HSBC has invested heavily in technology development in recent years. These investments have contributed to a 2% year-on-year increase in operating costs. As part of the company's restructuring, Georges Elhedery, former CFO, has also been appointed CEO, with the aim of improving efficiency and reducing costs by up to $300 million.

Restructuring plan into four business units

As part of a major restructuring, HSBC $HSBC will be split into four business units focused on "Eastern" and "Western markets" from January 2024. The move is intended to simplify the bank's structure, reduce duplication of processes and streamline decision-making. The changes also include the appointment of the first female CFO.

Outlook for the future

Analysts will monitor whether the new strategies and restructuring will deliver the expected results in terms of profitability and efficiency. With investment in technology, cost savings and more agile management, HSBC has the potential for further growth in the coming years.