Key facts
- HSBC reported third-quarter profits rose 32% to $9.6 billion.
- The bank plans to distribute $2.7 billion to shareholders via dividends and buybacks.
- Chief financial officer Pam Kaur stated there is no pressure to move HSBC's headquarters out of the UK.
- HSBC's net interest income increased to $9.3 billion in the third quarter.
HSBC's chief financial officer, Pam Kaur, sought to allay concerns about the bank potentially relocating its headquarters due to anticipated tax increases in the UK budget. Kaur stated that there is "no pressure" from shareholders, particularly in Hong Kong, to move, and that the bank remains "very comfortable" and "domiciled in the UK."
The bank announced a 32% increase in third-quarter profits, reaching $9.6 billion, and plans to distribute $2.7 billion to shareholders through dividends and buybacks. Despite these strong results, HSBC's shares fell nearly 6% on Tuesday morning.
Kaur expressed encouragement regarding the UK government's growth agenda under Prime Minister Andy Burnham and Chancellor John Healey, who is reportedly planning to reverse previous cuts to the bank surcharge. Lobby groups, including the Trades Union Congress, argue that banks can afford to contribute more, citing strong profits driven by higher interest rates.