HSBC’s third-quarter profit jumps 32%, launches buyback of up to $1 billion

By Selena Li and Lawrence White

HONG KONG/LONDON, Oct 27 (Reuters) - HSBC reported a 32% surge in third-quarter profit on Tuesday as rate hikes supported net interest income and due to the absence of legal provisions booked in the same period a year earlier.

Europe’s largest bank also unveiled a share buyback of up to $1 billion, the same amount as the previous quarter.

Pretax profit came in at $9.6 billion for the July-September quarter, in line with estimates compiled by HSBC.

The bank also said expected credit losses tumbled 17% to $800 million rom the same period a year ago, thanks to a reduction in charges linked to Hong Kong’s real estate sector as well as its UK and Mexican wealth businesses.

HSBC announced an interim dividend of $0.1 per share, the same as the previous quarter.