Third-quarter earnings within HSBC’s global private banking business fell just over 13 percent year-on-year, as the bank as a whole reported hefty profit reductions.
Nonetheless, the group result was not nearly as grim as analysts had predicted, with credit losses and revenue falling less than expected.
HSBC Group reported a Q3 pre-tax profit that was down 36 percent year-on-year, to $3.07 billion. Looking at the first nine months, group profit fell more than 57 percent to $7.39 billion.
Earnings within private banking were more resilience than in most of the bank’s divisions, with income down 5 percent in the first nine months of 2020, to $1.34 billion, when compared to 2019. Q3 income fell 13 percent, year-on-year.
HSBC’s group chief financial officer, Ewen Stevenson, said in an earnings call yesterday (27 October) that “the turnaround of global private banking continues, with net new money of $23 billion in the year”.
Group chief executive Noel Quinn also provided more details on the rationale behind combining the private banking, wealth management, and retail banking into a single unit dubbed ‘wealth and personal banking’ (WPB) – a move it announced in February.
Mr Quinn said on the call that there were two principal drivers behind the creation of WPB, the first and most important being “revenue syner...