HSBC Q3 profit up 10 to 8.5 bln, tops estimates of 7.6 bln
CEO says revamp does not reopen debate about splitting the bank up
CEO says market must wait for cost details of latest overhaul
Bank39;s shares rise 2.5 to sixyear high
HONG KONGLONDON, Oct 29 Reuters HSBC Holdings beat third quarter profit expectations on Tuesday thanks to rising wealth and wholesale banking revenue, but kept investors waiting for more detail on how a sweeping overhaul of its structure will deliver cost savings.
HSBC announced last week that it will merge some operations, slash senior roles and split its geographic footprint into East and West, although its CEO Georges Elhedery said on Tuesday that the latter did not imply it will eventually split up its business.
The bank39;s shares rose 2.5 in London to a sixyear high, echoing earlier gains in its Hong Kong shares after the lender also announced a fresh 3 billion share buyback.
HSBC39;s thirdquarter profit rose 10 to 8.5 billion, ahead of estimates of 7.6 billion, as it benefited from slowerthanexpected rate cuts, which had been anticipated to put more pressure on lending margins.
The London headquartered bank joined European peers in making robust progress on sustaining profits even as rates fall, but left bigger questions about the benefits of Elhedery39;s revamp.
HSBC39;s reorganisation of its geographic management along EastWest lines was interpreted by some analysts and investors as reviving the debate about whether it should…