HSBC Q3 Profit Down, Despite Asia Growth; Says Not To Reach FY20 RoTE Target

(RTTNews) - Asia-focused lender HSBC Holdings Plc (HSBC, HSBA.L) reported Monday that its third-quarter profit before tax declined 18 percent to $4.84 billion from last year's $5.92 billion.

Profit attributable to ordinary shareholders fell 24 percent to $2.97 billion from $3.90 billion a year ago. Earnings per share were $0.15, down from $0.19 a year ago.

Adjusted profit before tax was $5.35 billion, compared to $6.09 billion a year ago.

In the quarter, reported profit before tax in Asia grew 4 percent from last year to $4.7 billion, with a resilient performance in Hong Kong.

Revenues for the quarter declined 3 percent to $13.36 billion from $13.80 billion a year ago, due to lower client activity in Global Markets. Adjusted revenue was down 2 percent to $13.27 billion.

Looking ahead, the company said the revenue environment is more challenging than in the first half of 2019, and the outlook for revenue growth is softer than expected earlier. As a result, the company no longer expects to reach RoTE target of more than 11 percent in 2020.

Further, the company said it intends to sustain the dividend and maintain a CET1 ratio of above 14 percent.