The Retail Banking and Wealth Management division of HSBC has reported an adjusted pre-tax profit of $1.7bn for the third quarter of 2019, a plunge of 18% compared to $2.07bn a year ago.
The unit’s net operating income remained nearly stable at $5.63bn.
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Total operating expenses increased 7% to $3.49bn in 2019 Q3 from $3.27bn last year.
HSBC’s Global Private Banking business reported an adjusted pre-tax profit of $123m for the third quarter, a 32% jump compared to $93m a year earlier.
Group lags
Overall, HSBC group registered a pre-tax profit of $4.84bn in the third quarter of 2019. This is an 18% slump compared to the previous year’s profit of $5.92bn.
The banking group’s adjusted pre-tax profit of $5.35bn was 12% lower than a year ago.
Total reported revenue stood at $13.36bn in the September 2019 quarter. A year ago, the figure was $13.8bn.
The group’s common equity tier 1 ratio at the end of September 2019 was 14.3%.
HSBC Group CEO Noel Quinn said: “Parts of our business, especially Asia, held up well in a challenging environment in the third quarter.
“However, in some parts, performance was not acceptable, principally business activities within continental Europe, the non-ring-fenced bank in the UK, and the US. Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth.
“We are therefore accelerating plans to remodel them, and move capital into higher growth and return opportunities.”
