HSBC Reports Decline in Global FX Revenues in Q3 2021

HSBC Holdings plc (LON:HSBA) today released its financials for the third quarter of 2021, showing a slip in global Foreign Exchange revenues on a YoY basis.

More specifically, global FX revenues for the quarter came in at $772 million, compared to $842 million for the year-ago quarter. For the first nine months of 2021, global FX revenues stood at $2.45 billion, 26% lower than the same period in 2020.

Reported profit before tax reached $4.2 billion, and reported profit before tax totaled $5.4 billion. Moreover, reported revenue increased by 1% to $12.0 billion. Adjusted revenue down 1% to $12.2 billion.

All regions profitable in 3Q 2021, demonstrating continued earnings diversity. Asia contributed $3.3 billion to Group reported profit before tax, while in HSBC UK reported profit before tax increased by $1.0 billion to $1.5 billion.

In addition, net interest margin hit 1.19%, while common equity tier 1 (‘CET1’) capital ratio amounted to 15.9%. 

Noel Quinn, Group Chief Executive, commented:

“We had a good third-quarter performance, with strong growth in profits supported by additional credit provision releases. Our strategy remains on track, with good delivery in all areas. This was reflected in more consistent top-line growth, robust lending pipelines across our businesses, and rising trade and mortgage balances.

While we retain a cautious outlook on the external risk environment, we believe that the lows of recent quarters are behind us. This confidence, together with our strong capital position, enables us to announce a share buyback of up to $2bn, which we expect to commence shortly.”

As Fazzaco reported earlier, HSBC is launching a BaaS (Banking as a Service) offering through partnership with Oracle NetSuite​, a popular cloud-based ERP that offers a comprehensive suite of integrated business management solutions, to enable its clients to create and provide business banking services through their own platforms.