The shares of Europe’s largest bank, HSBC Holdings PLC (HK:0005) gained 0.39% to HK$63.8 on Tuesday morning in Asia after a better-than-expected earnings announcement in the previous session.
HSBC reported a 28% profit hike to $5.9 billion in the third quarter, compared to $4.6 billion in the same period last year. Profit for the first nine months of the year also surged 12% year-on-year from $14.9 billion to $16.6 billion.
The company’s revenue for the first nine months of this year reached $41.1 billion, 5% up from $39.1 billion in the same period in 2017. The London-based company owns assets of $2,603 billion as of Sept. 30.
Despite the numbers, analysts issued warnings about the firm’s business prospects.
“We think there are risks going forward for HSBC. We’ve seen a flurry of downgrades, we’ve seen the share price coming down,” Kevin Leung, executive director of investment strategy at Haitong International Securities, told CNBC.
