HSBC, Europe’s largest bank, is expected to announce on Monday an increase in its third-quarter pre-tax profit and revenue, helped by the continuous cost-cutting effort and a low base from a year ago, analysts said.

The bank, listed in Hong Kong, London and New York, is scheduled to release its third-quarter financial statement at noon HK/SIN.

“I think on a year-on-year basis there will be multiple jumps on profit because of the low base last year, which was, in turn, caused by a one-off expense last year. 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.

The bank’s third quarter 2016 reported pre-tax profit came in at $843 million and adjusted revenue was at $12.8 billion. In the first half of this year, the bank beat estimates with a pre-tax profit of $10.24 billion and revenue of $26.1 billion — a performance that helped HSBC shares climb in all three listings.

In Hong Kong, the bank has risen some 24 percent this year, helping the Hang Seng Index to outperform many of its regional peers.

Source: cnbc china
HSBC's cost-cutting measures to help third-quarter earnings