HSBC profits climb 32% as bank pledges $2.7bn shareholder payout

HSBC reported a 32% rise in quarterly profits and said it would return $2.7bn (£2bn) to shareholders. The results add to evidence that major UK banks remain highly profitable as the Treasury considers a bank tax rise in tomorrow’s budget.

The London-headquartered bank made $9.6bn in the July to September quarter, slightly below market estimates. Higher interest rates, lower loan losses and smaller legal provisions helped lift profits; net interest income rose to $9.3bn from $8.8bn a year earlier. The shareholder payout includes a $1bn share buyback and a $0.10-per-share interim dividend, worth $1.71bn. HSBC follows Barclays, which reported a 12% rise in profits the previous week.