HSBC third-quarter pre-tax profit falls 18 per cent, misses forecasts

HSBC Holdings Plc reported an 18 per cent drop in its third-quarter pre-tax profit, lagging forecasts, as the Sino-US trade war and Brexit uncertainties weighed on business sentiment in its core markets of Asia and Britain.

Pre-tax profit at Europe’s biggest bank by assets was USD 4.8 billion for the quarter ended Sept 30, down from USD 5.9 billion a year earlier, HSBC said in a statement to the Hong Kong stock exchange on Monday.

The profit was lower than the USD 5.3 billion average of analysts’ estimates compiled by the bank.

HSBC has been looking to step up its cost-cutting efforts amid gloomier business outlook due to an escalation of a trade war between China and the United States, an easing monetary policy cycle, unrest in its key Hong Kong market, and Brexit.