HSBC profits surge lends weight to Healey’s tax plan – Daily Business

HSBC lent support to the Chancellor’s plan to hike taxes on banks after announcing a 32% surge in third-quarter profit.

Ahead of Wednesday’s Budget, the Asia-focused bank said it was benefiting from favourable interest rates ​while avoiding hefty credit losses. However, there was slower growth at its wealth ‌business.

Pretax profit for Europe’s ​largest bank came in at $9.6 billion for the July-September quarter, in line ​with estimates compiled by HSBC. It also repeated the previous quarter announcement of a share buyback of ⁠up to $1 billion.

It said expected credit losses tumbled 17% to $800 million as a result of lower charges linked to Hong Kong’s real estate sector as well as its UK and ​Mexican wealth businesses. But revenue for its wealth division was flat at $2.7 billion. That ​compares with 15% and 23% year-on-year revenue growth in the first two quarters.

The figures could not prevent shares in the bank falling 5% on the Hang Seng index in Hong Kong.

The bank indicated that it was able to withstand pressures such as the war in Iran and rising inflation and said it is ‌on ⁠track to meet its core profitability targets through to 2028.

HSBC announced an interim dividend of $0.1 per share, the same as the previous quarter.