Commenting on the third quarter performance, Bill Winters, Group Chief Executive, said:

 

“We have doubled profits compared to the same period last year as we continue to make progress in realising the potential of the Group. We are transitioning our businesses to deliver higher quality income to improve sustainable returns. This process and the continued investments to support it are reflected in the results and will deliver greater longterm value to our shareholders.”

 

• Income of $3.6 billion in the quarter was up 4 per cent year-on-year and income year-to-date was up 5 per cent

• Expenses of $2.5 billion in the quarter were 4 per cent higher largely as a result of accelerated investments

• Loan impairment of $348 million was 42 per cent lower year-on-year reflecting improved credit quality

• Underlying profit before tax of $814 million in the third quarter was up 78 per cent year-on-year

 

• The Group is highly liquid and remains well capitalised

• Net loans and advances to customers of $277 billion increased 3 per cent since 30 June 2017

• Customer accounts of $418 billion increased 5 per cent in the third quarter

• Common Equity Tier 1 (CET1) ratio of 13.6 per cent (H1 2017: 13.8 per cent) remains above the target range

• The benefit of profit in the period and lower credit risk-weighted assets was more than offset by model changes

• It is estimated that IFRS 9 will reduce the CET1 ratio by 10 to 20 basis points phased in over five years

 

• Corporate & Institutional Banking has made good progress on its new client on-boarding initiatives

• Retail Banking continues to increase the proportion of income it generates from Priority clients

• Commercial Banking has continued to reposition the business and selectively grow its client base

• Private Banking added a further $2.2 billion in net new money during the quarter

 

• Statutory profit before tax doubled year-on-year on both a quarterly and a year-to-date basis

• The global economy is recovering slowly but competition is strong with asset margins remaining under pressure

• The Group’s focus remains on growing quality income to further improve returns

• Continued investment is targeted at enhancing controls and efficiency and into key growth platforms