The overall adjusted profit was $5.5bn compared with $6.4bn in the third quarter of 2014.
The global bank said adjusted revenues were down 4% in the three months to the end of September to $14bn, mainly because of the drop in the Principal Retail Banking & Wealth Management division. Revenue was also lower in Global Banking & Markets operation.
Operating expenses were also up 2% in the third quarter at $8.58bn, mainly due to increased spending on regulatory programmes and compliance.
“Despite slowing growth in the mainland Chinese economy and market volatility in Asia, there has been no visible impact on our Asian credit quality in 3Q15,” group chief executive Stuart Gulliver told an investor briefing.
Hong Kong hit
Iain Mackay, HSBC’s group finance director, said the reduction in revenue in the wealth management operation mainly reflected lower earnings in Hong Kong.
“This was caused by the stock market correction in Asia, which reduced asset valuations in our life insurance manufacturing business,” Mackay said.
Profit from retail banking and wealth management operations also fell 32.8% in the third quarter when compared to the previous quarter. While for the Asia region as a whole profits were down 30% in Q3 compared to Q2.
The bank also reported a 19.1% drop in profits from the Middle East and Africa region during the latest quarter compared with the previous one.
Overall HSBC ‘s results were better than expected after costs related to fines and compensation for customers fell by $1.4bn. However, its shares weakened by 1.2% in London morning trade.
