HSBC beats profit expectations on back of global rate increases
HSBC delivered higher than expected profits on the back of rising interest rates in the third quarter and announced changes to its leadership with the appointment of a new chief financial officer.
The bank on Tuesday reported adjusted pre-tax profit of $6.5bn for the third quarter compared to $5.5bn a year earlier, surpassing analyst estimates of $6bn as a global rise in interest rates helped spur higher returns across the UK-based lender’s global businesses.
HSBC announced that Georges Elhedery, co-head of global banking and markets, would replace Ewen Stevenson as chief financial officer. Stevenson will step down at the end of this year. Greg Guyett, formerly Elhedery’s co-chief, has been made chief executive of global banking and markets with immediate effect.
The bank has faced pressure this year from its largest shareholder Ping An, which holds a more than 8 per cent stake in the company and argues spinning off the bank’s Asia business would create up to $35bn of additional market value.
This story originally appeared on: Financial Times - Author:Hudson Lockett
