HSBC Reports 10% Profit Surge in Q3

Europe's largest bank, HSBC Holdings (LON:HSBA), reported a 10% increase in third-quarter profit, exceeding analyst estimates with a pre-tax profit of $8.5 billion. This performance represents a significant increase compared to $7.7 billion recorded in the same period last year and was above the bank's own compiled broker forecast average of $7.6 billion.

The London-based financial institution, with a strong focus on Asia, attributes its better-than-expected profits to the slower pace of interest rate cuts. This financial boost comes during a period when the bank is implementing one of the most significant restructuring efforts in its history.

In addition to the positive earnings report, HSBC announced a new share buyback program worth up to $3 billion. This new plan comes in addition to the previously announced $6 billion buyback program earlier this year. The buyback represents a return of excess capital to shareholders and is generally seen as a sign of the bank's financial health and confidence in future prospects.