The largest bank in Europe HSBC announced on Monday that its profit before taxes had risen 448% year on year in the quarter that ended during September.
The third quarter profit before taxes at the bank was $4.61 billion surging from last year during the same period of $843 million. Adjusted revenue was 3% higher compared to last year during the same period ending the quarter at $13 billion.
CEO of HSCB group Stuart Gulliver said the bank was able to maintain strong momentum during the third quarter as its international network was able to continue delivering strong growth and its pivot to Asia was driving higher results as well as lending growth, in particular across Hong Kong.
Asia was an important driver for growth in insurance, wealth management, and loans, said the bank. The area represented 87% or close to 4$ billion of the profit before taxes of the bank for the third quarter, and is what makes the bank different from its peers across Europe, said an industry analyst.
Shares of HSBC were up 1.1% in Hong Kong for the day following the quarterly results being released. The bank stock has increased by 24% during 2017, which has helped the Hang Seng outperform many regional peers.
Analysts were expecting the bank, which is listed in London, New York and Hong Kong, to post an increase in its profit as well as revenue before taxes for the third quarter, helped by continuous efforts in cost cutting and a low base to be compared to from the same quarter one year ago.
The third quarter of the bank in 2016 posted profit before taxes of just $843 million as well as adjusted revenue of $12.8 billion.
During the first six months of 2017, the bank beat its estimates with a profit before taxes of $10.24 billion on revenue of more than $26.1 billion, a performance that has helped shares of HSBC climb across all three of its listings.
The latest financials for HSBC showed again that the ability of the company to rise again following the worldwide financial crisis, as well as shifting its focus toward Asia, the bank scaled bank certain parts of tis operations including selling its business in Brazil.
The bank has also been able to keep capital buffers as well as dividends despite many rounds of buyback programs for shares.