HSBC Holdings PLC (LSE:HSBA) third-quarter update has been overshadowed by the significant structural changes announced by new chief executive Georges Elhedery.
Clear water is being put between the eastern (Asia) and western (UK, Europe, US) parts of the business, presumably making a full separation easier if required down the line.
Business units are also being merged and streamlined with all the details and costs involved promised by the full year end.
That still leaves third-quarter numbers to be released next week.
At the year’s halfway point, the bank revealed a first-half profit before tax of US$21.6 billion. down slightly from a year ago. and revenue rising 1% to US$37.3 billion.
Trading conditions since then have been reasonably stable so its target of a return on average tangible equity (RoTE) "in the mid-teens" for both 2024 and 2025 shouldn’t be under much threat.
Current RoTE forecasts are 15.8% this year and 12.5% next.
UBS also expects third-quarter adjusted pretax profits of US$7,63 billion, a CET1 ratio of 14.8% plus the announcement of a new US$2.5bn share buyback programme.