HSBC has signaled its pivot to Asia is paying rich dividends as quarterly profits leapt five-fold, laying a foundation for its new leadership to plan for growth after a tough period of post-crisis restructuring. Ciara Lee reports
A five-fold increase in profits - it's been a lucrative quarter for HSBC The bank's focus on Asia is paying rich dividends, And proving a tough period of post-crisis restructuring is paying off. HSBC earlier this month chose veteran John Flint as its next chief executive, he'll take over in February. With Flint, who spent much of his early career in Asia, and regional veteran Chairman Mark Tucker at the helm analysts expect the London-based bank's shift towards Asia to accelerate. (SOUNDBITE) (English) SENIOR MARKET ANALYST, LONDON CAPITAL GROUP, JASPER LAWLER, SAYING: "It does seem like its pivot to Asia as it refers to it is paying dividends. So they may feel that their own internal restructuring coupled with perhaps a more favourable environment, with higher interest rates in the US, expected to significantly add to their their bottom line, that actually maybe the process of restructuring is not as necessary as it once was." Pretax profit was $4.6 billion in the September quarter, up from $843 million in the same period a year ago The bank makes more than half of its profits in Asia - with a particular focus on China's Pearl River Delta region. HSBC's customer base for retail banking and wealth management in mainland China had expanded by more than 70 percent so far this year.