HSBC Profits Rise 40%

Profits at HSBC rose to $14.9 billion in the year to date, an increase of 41% versus 2016. Income also rose 55% over the period

Derya Guzel 30 October, 2017 | 11:27AM
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HSBC (HSBA) has revealed an income of $11.5 billion for the first nine months of 2017, a 55% increase compared with last year. Profits also increased to $14.9 billion in the year to date, a rise of 41% versus the previous year, mainly supported by a 60%-plus decline in loan impairment charges.

Morningstar analysts maintain the fair value estimate of 690p for HSBC, and confirm that HSBC has a narrow moat, or competitive advantage over peers, following third-quarter 2017 results.

HSBC’s reported top line stood at $39.1 billion for the nine months of 2017, an increase of $1.1 billion or 3%, driven by higher revenue in retail banking and wealth management and commercial banking, owing to a higher average deposit and improved spreads in Asia, and higher revenue in global banking and markets, partly offset by lower revenue in the corporate centre and global private banking segments. The increase in revenue was supported by a sharp jump in net favourable movement in insignificant items.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
HSBC Holdings PLC396.60 GBX-1.66Rating

About Author

Derya Guzel  is an Equity Analyst for Morningstar

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