HSBC: earnings drop, CFO quits

(CercleFinance.com) - On Tuesday HSBC published higher-than-expected taxable profit for Q3, however, this was overshadowed by the announcement of its CFO quitting,which led to a sharp drop in the stock on the London Stock Exchange.


The largest European bank in terms of assets this morning reported pre-tax profit of 3.1 billion dollars in the quarter ended 30 September, against 5.4 billion dollars a year ago.

This outstripped the consensus of around 2.4 billion dollars.

Net banking income fell by 3% over one year to 11.6 billion dollars, due to the sale of retail banking activities in France and unfavourable FX factors.

The group also reported operating expenses that overall were stable, although still below the eight billion dollar threshold for the quarter.

But the market seemed above all to wonder about the consequences of the departure of its CFO Ewen Stevenson, who will leave the bank at the end of the year.

Investors may well wonder what this means in terms of expenses, knowing that it was Mr. Stevenson who was in charge of the bank's cost program, RBC analysts commented.

On the London Stock Exchange, the HSBC share fell by nearly 5% in early trading, marking the largest drop in the FTSE 100 index (-0.4%).


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