HSBC profits jump as bank set for major shakeup

HSBC has seen its quarterly profits jump by 10% as the UK-based banking giant embarks on one of the biggest shakeups in its 159-year history.

The firm said its pre-tax profits rose to $8.5bn (£6.6bn) in the three months to the end of September, beating analysts’ expectations.

It comes just days after HSBC’s new boss announced a major overhaul of the company.

The firm will be divided geographically into eastern and western markets amid increasing geopolitical tensions and a need to cut costs.

HSBC’s new chief executive, Georges Elhedery, said that implementation of the plans will “begin immediately” and promised to share more details alongside the bank’s full-year results in February.

“We delivered another good quarter, which shows that our strategy is working,” Mr Elhedery added.

The bank also said it will buy back another $3bn of its own shares.

HSBC shares were more than 4% higher in London morning trade after the announcement.

“HSBC’s third-quarter results were solid, with no major surprises,” said Michael Makdad is a senior equity analyst at financial services firm Morningstar.

“Rather than the generally good results, I think the focus… will be on the structural overhaul”.

The bank also said it expects to complete the sale of its Argentinian business by the end of this year.

The company makes most of its money in Asia and has been shifting its focus to the region in recent years.

HSBC has also recently announced a reshuffle of its leadership, with the appointment of Pam Kaur as its first ever female finance chief.

Ms Kaur has worked at the bank for more than a decade and is currently its chief risk and compliance officer.

As well as becoming HSBC’s chief financial officer, Ms Kaur will take up the role of executive director of the board, which is subject to election at the firm’s next annual general meeting.

Mr Elhedery replaced Noel Quinn as HSBC’s chief executive in early September.

It came at a crucial moment for the bank, as it tries to maintain its position in Asian and Western markets amid growing geopolitical tensions.