British banking giant HSBC has posted adjusted pre-tax profit of $5.59bn for the third quarter of 2016, an increase of 7% compared to $5.24bn in the corresponding period of 2015.
However, the bank’s reported pretax profit slumped 86% to $843m from $6.09bn a year earlier.
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For the quarter ended 30 September 2016, the bank's reported revenue dropped to $6.09bn from $15.08bn in the prior year. Adjusted revenue increased 2% year-on-year to $12.78bn.
Net interest income stood at $7.18bn, down 10.5% from $8.03bn a year ago. Total operating expenses decreased 3.5% to $8.72bn from $9.04 in the previous year.
The bank’s common equity tier 1 ratio at the end of September 2016 was 13.9%.
HSBC's retail banking and wealth management unit reported adjusted pre-tax profit of $1.79bn for the third quarter of 2016, a rise of 19.1% from $1.51bn in the year ago third quarter.
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By GlobalDataAdjusted pre-tax profit at the bank's global private banking division was $109m, a 26.7% surge from $86m a year ago.
HSBC CEO Stuart Gulliver said: “Our third-quarter performance reflected the strength of our network and the deepening impact of our strategic actions. Reported profits were down, but adjusted profits were higher than last year’s third quarter in all four global businesses and four out of five regions.
“Reported profits included the impact of the disposal of our operations in Brazil, changes in the fair value of our own debt, and the costs of implementing our cost-reduction programmes.”
