Q3 2024 HSBC Holdings PLC Earnings Call Transcript
Key Points
- HSBC Holdings PLC (HSBC) reported a strong quarter with a Profit Before Tax of $8.5 billion, up 11% from the previous year.
- Revenue increased to $17 billion, reflecting a $1.1 billion rise from the same quarter last year, driven by strong performance in equities and global debt markets.
- The company announced a further $4.8 billion in distributions, including a third interim dividend and a new share buyback program.
- HSBC Holdings PLC (HSBC) is undergoing a reorganization to simplify its structure, expected to result in net cost savings.
- The bank's Wealth business showed significant growth, with a 32% increase in fee and other income year-on-year, particularly driven by strong performance in Asia.
- Banking Net Interest Income (NII) decreased by $0.3 billion from the second quarter, primarily due to a loss from the early redemption of legacy securities.
- The ECL charge for the third quarter was $1 billion, higher than anticipated, with significant contributions from Hong Kong and the UK.
- Loan balances remained stable, indicating subdued growth in lending activities.
- The reorganization involves upfront costs, although details on the exact figures and payback period will be provided later.
- There is uncertainty regarding the impact of Argentina's contribution to Banking NII, given the volatility created by hyperinflation accounting.
Welcome, ladies and gentlemen to the analyst and investor webinar on the 3Q 2024 results for HSBC Holdings plc. For your information, this webinar is being recorded. I will now hand over to Georges Elhedery, Group Chief Executive.
Thank you, Louise. Hello everyone. Thank you for joining today. I'm here with John Bingham, our group financial controller, who is acting as Interim Group Chief Financial Officer. We delivered another good quarter which shows that our strategy is working and we have a strong platform for growth. I am committed to building on that.
Before John takes you through the third quarter numbers, I would like to make a few comments. We made several announcements last week. First Pam Kaur will take over as Group Chief Financial Officer with effect from January 1.
Pam is an exceptional leader who joined HSBC in 2013 as Group Head of Audit and is currently our Group Chief Risk and Compliance Officer. With almost 40 yearsâ experience in the financial sector, she brings a
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