The bank, which recently cut mortgage rates for UK residential customers by up to 0.18 percentage points, said that it has grown its mortgage balances by $5bn on a constant currency basis since the beginning of 2024, with “notable” growth in the UK.
Georges Elhedery, group chief executive, said: “We delivered another good quarter, which shows that our strategy is working.”
HSBC’s revenue increased by 5% to $17bn compared with last year.
The bank’s shares were up over 4% in early trading, with the performance well above analyst expectations.
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Bank denies break-up rumours
The figures come just weeks after the bank announced a restructuring plan to separate its East and West operations. However, Elhedery denied that he was considering formally splitting the bank, despite pressure from its largest shareholder, Chinese insurer Ping An.
He told journalists that the restructuring programme was not a “precursor” to any split.
HSBC remains headquartered in London but makes most of its profits in Asia. The restructuring plans, which include a standalone UK division, will “reduce the duplication of processes and decision-making that are built into the current structure”, the group said.
The lender also announced that it would buy back $3bn of shares.
HSBC will pay an interim dividend of 10 cents per share.
Mortgage updates
Elhedery said that he would share further details on the restructuring plans in February, and that they would create a “simpler, more dynamic, more agile organisation with clearer lines of accountability and faster decision-making”.
HSBC recently introduced new technology into the UK mortgage market, making it more efficient for overseas homebuyers, and also allowing them to buy in the UK using an overseas credit history.
Gregor Mowat, founder of credit building business Loqbox, says this initiative is welcome although limited to certain countries.
“While HSBC’s service allows some international customers to transfer their credit history, many others remain left out, and that’s a glaring gap that needs addressing,” he says.
