HSBC announces share buyback of up to $1 billion as third-quarter profit meets estimates

Europe's largest bank HSBC on Tuesday reported third-quarter pretax profit that largely met analysts' estimates complied by the lender, and announced a share buyback of up to $1 billion by the end of this year.Revenue at HSBC rose to $18.6 billion from $17.8 billion in the same period last year, while banking net interest income rose 6%, alongside the bank clocking higher fee income form its corporate and institutional banking and wealth business. Here are HSBC's third -quarter results compared with the consensus estimates compiled by the bank.Pre-tax profit: $9.63 billion vs. $9.69 billion expected Revenue: $18.6 billion vs. $18.93 billion expectedThe bank's third-quarter profit before tax increased 32% from a year earlier to $9.6 billion, also reflecting the absence of $1.4 billion in legal provisions recorded in the same period last year. Higher revenue and lower credit losses also supported earnings. HSBC approved a third interim divided of 10 cents per share. The bank's net interest income rose to $9.3 billion in the third quarter, supported by deposit growth and higher yields from reinvestments in the bank's structural portfolio. Meanwhile, operating expenses decreased 12% year on year to $8.8 billion, largely due to non-recurrence of legal provisions recorded a year earlier. Excluding notable items, expenses rose amid inflation and higher spending on technology. The earnings come as HSBC is reportedly considering significant job cuts in its U.K. wealth management business, as part of a broader push to adopt artificial intelligence.