HSBC says pre-tax profit soars to US$7.7bn in Q3
HSBC Holdings on Monday said higher interest rates helped it to more than double its pre-tax profits for the third quarter, though it fell short of analysts' expectations. The bank said it made US$7.7 billion in the three months to the end of September, up from US$3.2 billion in the same period last year. Analysts had expected profits to top US$8 billion. The London-listed lender also announced a new US$3 billion share buyback which it aims to complete by next February, taking total buybacks for the year to US$7 billion. HSBC said it made US$1.1 billion in provisions for potential loan losses, of which US$500 million related to the commercial real estate sector on the mainland.  Speaking to reporters in an online conference call, the bank's chief executive, Noel Quinn, said he believes the mainland's commercial property sector has hit the bottom and is now ready to grow again. "I do think the major correction is over and it's now a case of progressive workout over an extended period of time." "The negative policy measures that have changed the commercial real estate market in China have really been landed. From here on in, it's a rebuild of that sector. So I am not expecting any further negative measures to correct the sector," he said. HSBC dished out a third interim dividend payout this year of 10 cents per share, bringing the total payout this year to 30 cents per share. The bank's Hong Kong-listed shares were down 0.26 percent after the earnings release, narrowing losses from 2.1 percent in the morning and outperforming the market's wider financial index which fell 1.21 percent. (Additional reporting by Reuters/AFP)