HSBC on Tuesday said it had appointed Georges Elhedery, a former head of its investment bank, as its new chief financial officer as it posted a 42% fall in third quarter profits due to rising loan losses and asset sales.
The bank posted a pre-tax profit of $3.15bn for the three months to September. 30, down from $5.4bn last year, but above the $2.45bn consensus of analyst estimates compiled by the bank.
Results also included a $2.4bn hit from the sale of the bank’s business in France as part of a pivot to Asia by HSBC in an effort to boost profits.
HSBC, which makes the bulk of its sales and profit in Asia, has come under pressure from Ping An Insurance Group, the Chinese firm that is its biggest shareholder, to explore options including spinning off and listing its mainstay Asia business to increase shareholder returns.
The bank is also exploring a potential sale of its Canadian unit, as it tries to streamline operations in order to lift profits amid pressure from Ping An.
Elhedery will replace Ewen Stevenson, who will step down at the end of this year.
“We maintained our strong momentum in the third quarter and delivered a good set of results,” said chief executive Noel Quinn.
“We are focused on executing our plans and delivering our returns target of at least 12 per cent from 2023 onwards and, as a result, higher distributions to our shareholders.” However, the bank maintained its guidance for a dividend payout ratio of 50% in 2023 and 2024.
Reporting by Frank Prenesti for Sharecast.com
