HSBC profit rises 32% as shares fall after results

HSBC reported third-quarter pretax profit of $9.6 billion, up 32% from a year earlier, and announced a share buyback of up to $1 billion. Its shares fell after the results, as investors weighed the profit increase against weaker revenue growth in the wealth business and results below some estimates. The profit figure covered July through September and was in line with estimates compiled by HSBC. The bank attributed the increase in part to higher net interest income, lower expected credit losses and the absence of legal provisions booked in the same quarter a year earlier. HSBC’s revenue rose 0.8% to $18.6 billion, but fell short of its compiled estimate of $18.93 billion, according to the reported results. Expected credit losses declined 17% year on year to $800 million. HSBC said the reduction reflected lower charges linked to Hong Kong real estate and its UK and Mexican wealth businesses. Operating expenses fell 12% to $8.8 billion. The wealth division recorded revenue of $2.7 billion, unchanged from a year earlier. HSBC said that followed year-on-year growth of 15% and 23% in the first and second quarters, respectively. The bank also announced an interim dividend of $0.10...