The Retail Banking and Wealth Management division of HSBC has posted an adjusted pre-tax profit of $2.09bn for the third quarter of 2018, a surge of 25% compared to $1.68bn a year ago.
For the quarter ended 30 September 2018, the division’s net operating income increased to $5.46bn from $5.05bn in the third quarter of 2017.
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Total operating expenses during the quarter increased to $3.37bn from $3.35bn a year ago.
The Global Private Banking business of the bank reported adjusted pre-tax profit of $95m for the third quarter, a surge of 72% compared to $55m a year earlier.
Commenting on the division’s performance, HSBC group chief executive John Flint said: “Retail banking and wealth management and commercial banking built on the momentum generated in the first half of the year, with both using the benefits of past investment to grow lending and deposit balances. Adjusted revenue growth in retail banking and wealth management came primarily from current accounts, savings and deposits, particularly in Hong Kong.”
Overall, the banking reported pre-tax profit of $5.92bn for the third quarter of 2018, an increase of 28% compared to $4.62bn a year ago.
The group’s adjusted pre-tax profit stood at $6.19bn, a jump of 16% over $5.33bn reported last year. Net interest income rose from $7.12bn in the third quarter of 2017 to $7.68bn this year, while its reported revenue grew to $13.79bn in the quarter and adjusted revenue was $13.84bn.
Meanwhile, the group’s common equity tier 1 ratio at the end of 30 September 2018 was 14.3%.
