Banking giant HSBC has revealed a $4.5bn (£3.7bn) rise in its profits in the latest three-month period, thanks to a boost from higher interest rates.
The company said pre-tax profits hit $7.7bn in the third quarter of the year, compared to $3.2bn the same period a year earlier. It unveiled plans for a $3bn share buyback.
Chief executive Noel Quinn said: “We have had three consecutive quarters of strong financial performance.”
However, analysts had been expecting a bigger uplift in the period, with forecasts for HSBC to deliver $8.1bn in pre-tax profits.
Jefferies analyst Joe Dickerson said costs were “likely to be the controversy”, after HSBC increased its spending on technology and upped performance related payouts.
HSBC on Monday signalled it could increase bonuses before the end of the year. Mr Quinn told Bloomberg TV: “We have signaled, potentially in the fourth quarter because of the very strong trading performance of the business, we may well top up our variable pay by an extra 1pc, or $300m.”
It comes ahead of the UK scrapping its cap on bankers’ bonuses. The Bank of England confirmed last week that bonuses would no longer be capped at two times annual salaries from the end of October, as part of a drive to increase competitiveness and help attract talent.
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