CEO of HSCB group Stuart Gulliver said the bank was able to maintain strong momentum during the third quarter as its worldwide network was able to continue delivering strong growth and its pivot to Asia was driving higher results as well as lending growth, in particular across Hong Kong.
Q3 net earnings also rose to $2.96 billion (2.55 billion euros), up from a loss of $617 million in the same quarter a year earlier.
That was largely the result of a weak third quarter past year, most notably due to a US$1.7bn loss booked following the sale of its Brazil operations. In a statement to the Hong Kong stock exchange the bank said that its "pivot to Asia" had driven over 70 per cent of the group's adjusted profit in the first nine months of this year. The region accounted for 87 percent, or around $4 billion, of HSBC's third-quarter pre-tax profit and is what differentiates the bank from its European peers, said Martin Smith, head of markets analysts at East & Partners.
HSBC shares in Hong Kong closed 0.3 percent lower, in line with the market's broader trend.
HSBC reported an nearly fivefold increase in pre-tax profit for the third quarter as its post-crisis restructuring comes to an end and the bank switches its attention to growth. "But on a quarterly basis, the third-quarter profit will probably be lower than the second quarter due to decline in income and some jump in the provisions for bad loans", Ivan Li, research director at DBS Vickers Hong Kong, told CNBC before the release.
Pre-tax profits rose 448% to $4.6bn but, when adjusted for significant items, fell 1%.
The latest financials for HSBC showed again that the ability of the company to rise again following the worldwide financial crisis, as well as shifting its focus toward Asia, the bank scaled bank certain parts of tis operations including selling its business in Brazil.
'Shortest Asia-Europe rail link' launched in Azerbaijan
The initial plan was to open the railway in 2010 but it was delayed several times, mainly for financial reasons. Erdogan said "it's important that we have implemented this project using our own funds".
Investors and analysts interpreted the results as another sign the bank's turnaround, which CEO Stuart Gulliver started in 2011 and accelerated in 2015, is gaining traction.
The performance comes at a critical time for HSBC's leadership.
Lending in Europe increased by $1.2bn (£900m), notably in the United Kingdom, as higher balances in retail banking and wealth management were driven by United Kingdom mortgage growth of $2.8bn (£2.1bn).
This month, new Chairman Mark Tucker, the first outsider to hold the job, named veteran banker and company insider John Flint to replace Gulliver as CEO in February.
The bank has made expanding in China's fast-growing Pearl River Delta region a key strategy.
In global banking - which includes securities services, global liquidity and cash management, global trade and receivables finance and investment banking - revenues of $943m were down 5% year-on-year.
The bank has also been able to maintain its capital buffers and dividends despite multiple rounds of share buyback programs. "This is an important area to us, we'll continue to invest there and hopefully continue to grow and see profitability build", Mackay said.