HSBC bank has announced a 10% increase in its profits. The quarterly profits peaked at $8.5 billion (£6.6 billion) for the period ending in September, thereby beating market expectations. Carrying out the biggest restructuring in its 159 years of history, the bank is doing it.
The new chief executive, Georges Elhedery, said the bank will be divided into east and west divisions to assist it in handling the rising tensions in geopolitical relationships and also in adopting cost-cutting measures. Elhedery said that the changes will “begin immediately,” while more details will be unveiled with the bank’s full-year results in February.
HSBC also confirmed a share buyback of US$3 billion, and helped push London-listed shares up 4 percent in midday trade following the release of the numbers. “I think you’re going to continue to watch for structural changes. The result was solid.”.
As part of the restructuring, HSBC will complete the sale of its Argentinian business by the end of this year. The bank has been focusing more and more on its Asian markets in the recent past, and this seems to be the case even under the new management.
The most recent in the series of senior leadership shake-ups is the appointment of Pam Kaur as the bank’s first female chief financial officer. Kaur has been with the bank since more than a decade and was earlier group chief risk and compliance officer, also to be appointed as an executive director of the board subject to election at the next annual general meeting.
It’s the new era in an extremely pivotal period for the company that appointed Elhedery earlier this September as its chief, following the retirement of Noel Quinn at the end of early September, amid heightened uncertainties worldwide.