HSBC (HSBA) have reported a 32 percent rise in pretax profit for the third quarter, evidence that cost-cutting measures announced in June are having a positive effect on the bank’s finances.
In June, the bank announced thousands of job cuts and 10 strategic management goals in order to improve shareholder returns. Heavy spending on compliance has meant that there have been reduced costs from fines and settlements with regulators.
Chief executive Stuart Gulliver said in a statement:
“Our cost-reduction measures are beginning to have an impact on our cost base. However, there is more to achieve on costs and we expect the measures we have already taken to have a further impact in the fourth quarter.”
Quarterly pretax profit was $6.1 billion, up from $4.6 billion in the same period a year ago and above expectations by analysts.
However, underlying revenues fell 4 percent to $15.1 billion compared with the same quarter last year, as the effect of turbulent stock markets in Asia over the last quarter is felt.
