HSBC UK posted pre-tax revenue up 54% to $1.7bn (£1.4bn) within the third quarter, boosted by greater mortgage gross sales and “the positive impact of a higher interest rate environment”.
The UK arm of the worldwide financial institution says mortgage loans rose by $5bn (£4.1bn) within the first 9 months of the yr, in comparison with a yr in the past.
This contrasted with lending throughout the worldwide group, which fell by $24bn within the three months to the top of September, in comparison with the second quarter of the yr.
The financial institution says this “reflects a reduction in commercial banking as demand in Asia remained muted, although mortgage balances in [its] wealth and personal banking [division] were higher, notably in Asia and the UK”.
Its group web curiosity margin – the distinction between what it costs to debtors and what it pays out to savers – lifted by 19 foundation factors got here to 1.70% in contrast with a yr in the past, however slipped by 2bps in comparison with the earlier quarter.
The financial institution mentioned this “reflected an increase in customers migrating their deposits to term products, particularly in Asia”.
Major UK banks have reported a run of sturdy earnings buoyed by Bank of England base price rises which have lifted 14 occasions since December 2021 to five.25%.
However, buyers are involved about more durable competitors for savers’ money and potential mortgage defaults in a cost-of-living disaster have weighed on the sector.
Lloyds Banking Group, Barclays, NatWest and Santander all reported outcomes final week.
HSBC chief government Noel Quinn says: “There was good broad-based growth across all businesses and geographies, supported by the interest rate environment.”
The lender added it might perform a share buyback of as much as $3bn, which can take place up till the corporate’s full-year outcomes on 21 February.
Across the worldwide business, pre-tax revenue jumped by $4.5bn to $7.7bn within the third quarter, partly pushed by the reclassification of $2.3bn of impairments on the deliberate sale of its retail banking operations in France.
However, this fell wanting analyst’s expectations of $8.1bn of revenue over the interval.
Shares edged 0.3% greater to 603p in mid-morning buying and selling.
