HSBC profit dramatically falls in Q3

HSBC reported a sharper-than-expected 86% fall in pretax profit for the third quarter as the British lender took a $1.7bn loss on the sale of its Brazilian unit and it also pointed to customer compensation in America and currency moves for the fall in profits.

The bank's reported pretax profit was $843 million in the September quarter, down from $6.1 billion in the same period a year ago, HSBC said in a Hong Kong stock exchange filing on Monday.

That was much lower than estimates of $2.45 billion, based on the average of analysts' forecasts compiled by the bank.

Chief executive Stuart Gulliver said: "Reported profits were down, but adjusted profits were higher than last year's third quarter in all four global businesses and four out of five regions."
David Cumming, head of UK equities at Standard Life, said HSBC's results were "slightly above consensus", with costs a bit better than expected and its investment banking reasonably strong.

The bank decided after a 10-month review in February to keep its headquarters in London rather than moving to Hong Kong. But CEO Stuart Gulliver said that HSBC could move 1,000 jobs to Paris if Britain voted for Brexit.

Last week it emerged HSBC could face trial for alleged tax fraud in France over the activities of its Swiss subsidiary.