HSBC's Q3 pretax profit doubles, pleasing shareholders despite breakup proposal

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HSBC's Q3 pretax profit doubles, pleasing shareholders despite breakup proposal
Credit: © Reuters.

HSBC Holdings Plc (LON: HSBA ) has reported robust quarterly results, with the Q3 pretax profit more than doubling from last year, reaching $7.71 billion. The bank's CEO, Noel Quinn, expects these strong results to be positively received by key Chinese shareholder, Ping An Insurance Group Co., as well as other institutional shareholders.

The bank's performance this year has been impressive, showing a remarkable 17% return on tangible equity over the first three quarters. Despite slightly missing analyst expectations for the Q3 results, Quinn believes that the bank's financial performance will please all shareholders through dividends and buybacks.

Earlier this year, Ping An Insurance Group Co. had proposed a breakup of HSBC, suggesting that the Asian business should become a standalone company. However, this proposal was rejected by shareholders. Despite this rejection, HSBC's stock value has surged by 18% since the start of the year.

Quinn anticipates that the strong quarterly results will be positively recognized by Ping An Insurance Group Co., which had proposed the breakup of HSBC earlier in the year. He believes that these results demonstrate the bank's ability to deliver strong returns and growth, which should reassure all shareholders about the bank's future prospects.

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