HSBC Holdings (NYSE:HSBC) PLC reported a pre-tax profit of $7.7bn for the third quarter of 2023, more than double the figures from the same period in 2020 but below the $8.1bn analysts' projection. The London-based bank, which generates most of its income in Asia, attributed this to three consecutive quarters of strong financial performance, as stated by Group CEO Noel Quinn.
The bank plans to distribute over $3bn to its shareholders through a share buyback and a 30 cents per share dividend. These actions will bring the total buybacks and dividend payout for the year to $7bn and 30 cents per share respectively.
However, HSBC has been impacted by China's distressed commercial property market, with $500m of the bank's $13.6bn exposure linked to potential defaults. Georges Elhedery, HSBC's CFO, expects a slow recovery for the Chinese property market but commends ongoing policy measures aimed at alleviating pressure on the sector.
HSBC's shares saw a 1.1% increase on Monday, contrasting with Standard Chartered (OTC:SCBFF)'s shares which experienced an 11% decline due to a $186m hit from China's property sector and its stake in China Bohai Bank.
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