HSBC to buy back $2bn of stock as profit surges 74%

HSBC annouced a $2bn share buyback and posted at 74% increase in Q3 earnings, making it the lastest global lender to turn bullish on the economic outlook nearly 2 years after the start of the pandemic. Earnings were given a big boost by a $659m release from its reserves for potential bad loans - 85% of which were related to the UK as fears about a wave of company bankruptcies faded and growth rebounded.

- HSBC's situation was completely different a year ago when the naml's provision for bad debts exceeded $8bn at the peak of coronavirus lockdowns eventually pushing down annual profit by 45%

- HSBC's overall third quater pre tax profit jumped to $5.4bn from $3.1bn beating expectations.

- Revenue rose for the first time in 2 years

The recovery of one of the world's global lender means that the world economic outlook might finally be taking a turn for the better. Gradually , the economy is begining to shake off covid fears and business beign to operate normally back to pre-covid days. Hoever the long road to economy recovery is still not fully realised as inflation fears continue to plague the markets worldwide.

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