HSBC pre-tax profit up 32pc

HSBC saw pre-tax profit surge 32 percent year-on-year in the third quarter on the back of lower fines, the banking giant announced Monday, but revenue dropped in the wake of Asian market volatility.

Group chief executive Stuart Gulliver said the performance was "resilient", with pre-tax profit at $6.1 billion from $4.6 billion in the same quarter last year.

But revenue had been affected by stock market sell-offs in Asia and was down four percent at $15.1 billion. HSBC announced in June it would cut its global workforce by up to 50,000 and sell off its businesses in Brazil and Turkey to cut costs.

"Our cost-reduction measures are beginning to have an impact on our cost base," Gulliver said, but added that there was more to achieve.

The bank is also considering moving its headquarters from Britain but said there was a "considerable amount of work still to do" before a decision is made.

"Whilst the target for completion of the review was initially set as by the end of 2015, this is a self-imposed deadline that can be moved should the Board require further work to be performed," the report said.

The third-quarter results beat analysts' expectations, with some saying cost reductions are now reaping rewards.

"This time the earnings were pretty impressive," said Jackson Wong, associate director for Simsen Financial Group.

"Their cost control had (previously) not really lived up to the target, but now it looks like they are finally in control."

But Wong added it would be a long road before revenue growth resumes.