British multinational financial giant HSBC Holdings Plc. is set to buy back $2 billion worth of shares after its profits soared by double digits in the third quarter, FT reported.
- The $2-billion buyback program follows the interim dividend the firm announced in August at 7 cents per share, equivalent to $1.4 billion. The door is open for more returns, as its core capital level remains above the regulatory minimum at 15.9%.
- HSBC reported pre-tax profits of $5.4 billion in the July to September period, up from the $3.1 billion last year and higher than market expectations of $3.8 billion. Revenues climbed to $12 billion, up for the first time in two years.
- The financial giant aims to cut down costs by $4.5 billion, reduce its manpower by 35,000, and shift $100 billion in risk-weighted assets to Asia. It already sold its loss-making French retail bank earlier this year and earmarked $6 billion to boost its Asia wealth business.
The surge in earnings came as the bank had a significant reduction in provisions for bad debts. HSBC is up 0.63% premarket.