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Key Takeaways
- HSBC Holdings posted better-than-expected results as revenue at its wealth unit surged.
- The British bank also announced another $3 billion stock buyback after completing the previous one.
- U.S.-listed shares of HSBC Holdings rose to their highest point since 2018.
U.S.-listed shares of HSBC Holdings (HSBC) advanced Tuesday as the British financial firm’s third-quarter results beat forecasts and it announced another $3 billion stock buyback.
The bank reported earnings per share (EPS) of $0.34, with revenue up 5% year-over-year to $17.00 billion. Both exceeded consensus estimates of analysts polled by Visible Alpha.
Revenue was driven higher by growth at its Wealth and Personal Banking division, which jumped nearly 13% to $7.41 billion. Net fee income rose 4% to $3.12 billion.
CEO Says ‘Our Strategy Is Working’
“We delivered another good quarter, which shows that our strategy is working,” HSBC Group Chief Executive Officer (CEO) Georges Elhedery said.
In a note to clients, Jefferies called the results “steady,” but said “investors will want to hear more on group strategy.”
The bank said that it had completed a $3 billion share repurchase it launched earlier this year, and the board approved another up to $3 billion buyback, “which we intend to complete in the four-month period before our FY24 results announcement.”
U.S.-listed HSBC Holdings shares climbed more than 3% at midday to $46.70, their highest level since the summer of 2018.
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