HSBC Plans Share Buyback Worth 4 Trillion Won

3Q Pre-Tax Profit $7.7 Billion...Below Expectations

British multinational bank HSBC announced on the 30th (local time) that it will repurchase $3 billion (approximately 4.05 trillion KRW) worth of its own shares amid prolonged high interest rates. HSBC, which holds Chinese real estate assets, assessed that the local market appears to have escaped the worst crisis.

[Image source=Reuters Yonhap News]

According to CNBC and other outlets, HSBC announced in its earnings report that its pre-tax profit for the third quarter of this year reached $7.7 billion. Although this is a significant increase compared to $4.5 billion in the third quarter of last year, it fell short of market expectations of $8.1 billion. Foreign media reported that profits increased due to high interest rates, but costs also rose, resulting in lower-than-expected earnings.

Net profit for the third quarter was $6.26 billion, a 235% increase compared to the same period last year. During this period, revenue was $7.71 billion, up 139% year-on-year, and the net interest margin rose 19 basis points (1 bp = 0.01 percentage points) to 1.7%, exceeding the expected 1.68%.

HSBC stated that its share repurchase program will be launched soon and aims to complete the buyback by February next year. It also added that it plans to increase the total announced share repurchase amount to $7 billion this year.

HSBC generates most of its earnings from the Asian region. Recently, it has faced difficulties in delivering strong performance as China’s economic growth slows and the real estate market rapidly declines.

However, Noel Quinn, HSBC’s Chief Executive Officer (CEO), said, "The major adjustment in the real estate market has ended, and it now seems that things are steadily progressing over the long term," adding, "We expect some adjustments in this sector for about two quarters."

This content was produced with the assistance of AI translation services.