HSBC profits rise as costs fall

HSBC profits rise as costs fall

HSBC reported increased profits for the third quarter of 2018 as it cut costs.

The bank posted profits before tax of $5.9bn (£4.5bn), up 28 per cent on the same period last year.

For the first nine months of 2018, HSBC's profits before tax were up 12 per cent to $16.6bn (£12.9bn).

John Flint, chief executive of HSBC, said: "These are encouraging results that demonstrate the revenue potential of HSBC.

"We are doing what we said we would - delivering growth from areas of strength, and investing in the business while keeping a strong grip on costs.

"We remain committed to growing profits, generating value for shareholders and improving the service we offer our customers around the world."

HSBC's lending grew by £15.2bn (£11.8bn) in the first nine months of the year, which was largely driven by its European activities.

The most notable element of this was the growth in UK mortgage lending, which increased by $4bn (£3.1bn) and which, the bank said, reflected its focus on broker-originated mortgages.

HSBC also revealed its wealth management division "built on the momentum" from the earlier part of the year.

The bank stated greater investment distribution revenue, which reflected increased investor confidence, more than offset lower life insurance manufacturing revenue.