The bank said the quarterly profit rise was due to a favourable shift in significant items such as lower fines, settlements and UK customer compensation.
Payouts to compensate UK customers reduced from $701m in Q3 2014 to $67m in Q3 this year.
Adjusted revenue dropped by 4% in the third quarter to $14,044m from $14,701m earned in the same quarter of the previous year. The bank said this was due to the stock market correction in Asia which affected its principal retail banking and wealth management division. Revenue was also lower in global banking and markets and in personal lending in the UK because margins on mortgage lending were ‘compressed’. Lower interest income from credit cards was also cited as a reason for reduced revenue.
HSBC began a review in April to assess whether London was the best place for its headquarters. The review was prompted by increased levies and a potential exit from the European Union. The bank said it wanted to focus on long-term perspectives and its future strategic opportunities to maximise value for its shareholders. It hopes to make a decision by the end of the year.
In a report from Knight Frank, released today, the estate agent talked about the merits of London being a place to do business with and how this was directly linked with the success of the sale and letting of prime property in the capital.
In the same month the bank announced it was planning to cut up to 25,000 jobs worldwide with 8,000 expected to be in the UK.
