3Q 2024 update

Our 3Q 2024 Earnings Release and other key documents are available to download.

Downloads and Zoom meeting

At a glance

We’ve delivered another good quarter, which shows that our strategy is working.

For the quarter ended 30 September 2024

$8.5bn
US DOLLARS
Fact: Profit before tax for the third quarter of 2024 was 8.5 billion US dollars, compared with 7.7 billion US dollars for the third quarter of 2023
$17.0bn
US DOLLARS
Fact: Revenue was 17 billion US dollars, compared with 16.2 billion US dollars for the third quarter of 2023
$0.10
US DOLLARS
Fact: Our dividend per share for the third quarter of 2024 was 10 US cents

Highlights:

  • Profit before tax increased by $0.8bn compared with 3Q23
  • Revenue rose by $0.8bn vs 3Q23, reflecting higher customer activity in our Wealth products and in Foreign Exchange, Equities and Global Debt Markets
  • We’ve completed the $3bn share buyback announced at our Interim Results and intend to initiate a further buyback of up to $3bn
  • Our common equity tier 1 (CET1) capital ratio of 15.2% increased by 0.2 percentage points compared with 2Q24
  • Expected credit losses and other impairment charges (ECL) were $1.0bn, $0.1bn lower than in 3Q23
  • Operating expenses of $8.1bn were $0.2bn or 2% higher than in 3Q23. The growth was primarily due to higher spend and investment in technology and the impacts of inflation
  • Last week we set out plans to reorganise our business and align the way we work with the delivery of our strategic priorities

Group Chief Executive

Georges Elhedery image

“We delivered another good quarter, which shows that our strategy is working. There was strong revenue growth and good performances in Wealth and Wholesale Transaction Banking.

“Our strong organic capital generation enables us to announce a further $4.8bn of distributions in respect of the third quarter, which bring the total distributions announced so far in 2024 to $18.4bn.

“I’m committed to building on this strong platform for growth. HSBC is a highly connected, global business and the plans we set out last week aim to increase our leadership and market share in areas where we have competitive advantage, deliver best-in-class products and service excellence to our customers, and create a simpler, more dynamic, more agile organisation with clearer lines of accountability and faster decision-making.

“We will begin to implement these plans immediately and will share further details as part of a business update alongside our full-year results in February.”

Georges Elhedery, HSBC Group Chief Executive

29 October 2024

32
PER CENT*
Fact: Wealth fee and other income increased by 32 per cent, on a constant currency basis, compared with the third quarter of 2023
19.3
PER CENT
Fact: Annualised return on tangible equity was 19.3 per cent, or 16.7 per cent excluding notable items, for the first nine months of 2024
$4.8bn
US DOLLARS
Fact: Our planned distributions to shareholders in respect of the third quarter total 4.8 billion US dollars

Outlook

Our guidance remains unchanged from that set out at our Interim results on 31 July 2024.

We continue to target a mid-teens return on average tangible equity (RoTE) in 2024 and 2025, excluding the impact of notable items, while acknowledging the interest rates outlook has changed, and been volatile, since our 1H24 results announcement.

Our banking net interest income (NII) guidance of around $43bn for 2024 remains unchanged and we continue to target cost growth of approximately 5% for 2024 compared with 2023, on a target basis.

ECL charges as a percentage of average gross loans in 2024 are expected to be within our medium-term planning range of 30bps to 40bps (including customer lending balances transferred to held for sale).

We intend to manage our CET1 capital ratio within our medium-term target range of 14% to 14.5%, with a dividend payout ratio target basis of 50% for 2024, which excludes material notable items and related impacts.

We continue to make progress on reshaping the Group. We expect to complete the sale of our business in Argentina in 4Q24. On completion, cumulative foreign currency translation reserves and other reserves will recycle to the income statement. These impacts have already been recognised in capital.

Context behind the numbers

Profit before tax in 3Q24 included a $0.3bn loss on the early redemption of legacy securities. The 3Q23 period included $0.6bn of disposal losses relating to Treasury repositioning and risk management, which was partly offset by a $0.2bn gain on foreign exchange hedges relating to the disposal of our banking business in Canada.

The reduction in ECL compared with 3Q23 primarily reflects lower charges in the mainland China commercial real estate sector in Commercial Banking and Global Banking and Markets, in part offset by an increase in ECL charges in Wealth and Personal Banking.

Downloads and Zoom meeting



Find out more in our Investors section or watch the replay of the Zoom meeting (opens in new window) for investors and analysts.

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