HSBC, Europe’s largest bank, earns 5.7% less

HSBC, Europe’s largest, cut its net profit by 5.7% through September, to $10,202 million (€10,324 million) due to deteriorating assets resulting from the sale of its commercial banking business in France.

In the first nine months of the year, the group’s turnover shrank 1.89% to $36,852 million (€37,293 million), according to accounts the company sent today to the Hong Kong Stock Exchange where it was listed.

Specifically, in the third quarter, the entity’s net profit fell 46.01% compared to the same period last year, while billing fell 3.3%.

The solvency ratio of ‘Tier 1’ – basic equity – was 13.4%, 0.2 points below the figure recorded at the end of June and 2.4 at the end of 2021, a downward trend that HSBC does not blame solely on the operation in France. , but also the return. The curves are getting steeper in the context of rising interest rates.

Looking to the future, the bank’s billing expectations remain “positive” despite the devaluation of the pound and the rise in its financing costs, although it warns of the negative impact on the global economy of issues such as high inflation or weak prospects.

Likewise, HSBC advances that it will “closely monitor” issues such as the impact of higher interest rates or the development of China’s property sector.