HSBC Holdings on Monday said it’s earmarking an extra $300 million for performance-related pay, as the bank reported a big surge in third-quarter profit.
CFO Georges Elhedery on a conference call said the board and remuneration committee will ultimately decide, but the planned boost to pay is in recognition of the reshaping of the bank, its strong balance sheet, and the growth in wealth and transaction banking.
HSBC also flagged it would spend about 1% more than previously expected on technology and operations expenditure.
The bank more broadly reported a near tripling of third-quarter profit, to $6.27 billion from $2.66 billion, as revenue rose 40% to $16.16 billion. It benefited from a flattering comparison to last year, when it took a $2.5 billion impairment on its French retail banking operations, and revenue also was helped by the impact of interest rate rises in its payments, global banking and markets and personal banking divisions.
HSBC reversed most of that in the first quarter when the sale became less certain, but now is expecting to reinstate the impairment in the fourth quarter. Expected credit losses were stable at $1.07 billion.
It also announced a $3 billion stock buyback.
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drifted 0.4% lower in U.K. trade. The stock has gained 16% this year.
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