HSBC surprises with 74% rise in Q3 profit

HSBC has reported a surprise rise in third quarter profits of 74%.

Concerns about health-crisis-related bad loans receded, allowing it to announce a share buyback of $2 billion.

HSBC though said its cost projections for next year had increased to $32 billion from $31 billion.

Due to the pressures of inflation.

HSBC is betting on Asia to drive growth, by moving global executives there and ploughing billions into the lucrative wealth business.

The bank posted pretax profit of $5.4 billion for the quarter to September.

HSBC released $700 million in cash it had put aside in case bad loans spiked.

It said economic conditions have improved while loans have performed better than expected.

The results from the London-headquartered bank come as rivals such as Citigroup are riding a M&A boom, while fending off weakness in the lending business.

It is the second big British lender to report strong results for the quarter.

Barclays last week doubled profits on the back of a strong performance from its investment bank advisory business.