Swiss bank HSBC's third-quarter profits have come in nearly a billion euros above analysts' forecasts. The strong results were attributable to lower fines and settlements and internal cost-cutting measures.
HSBC's 3Q profits before taxes rose 32 percent on the year, the bank reported Monday, citing a steep drop in fines for past misconduct and fewer litigation costs as reasons for the spike.
Costs related to penalties and compensation for customers were $1.4 billion (1.26 billion euros) less in the three months to September this year than in the same quarter in 2014.
The lower fees came at the right time as they were able to counteract a slowdown in Asia and increased spending on regulatory compliance.
"Our third quarter performance was resilient against a tough market backdrop," HSBC CEO Stuart Gulliver said, referring to fierce sell-offs among Asian traders as worries over a slowdown in China's economy, the world's second-largest, weigh on stocks.
Some analysts also attributed the bank's third-quarter performance to an aggressive restructuring plan, which they said were beginning to have an effect on HSBC's cost base.
Those cost-cutting measures will ultimately see the bank slash its global workforce by 50,000, according to an announcement made it June.
cjc/hg (AFP, Reuters)