HSBC profits jumped because it got fined less this quarter

The company - a subsidiary of Europe's biggest bank - says it was affected by lower margins, lower gains on investments, higher costs and higher loan impairment charges, compared with the third quarter of 2014. That was more than the consensus estimate of $5.2 billion, based on the average of analysts' forecasts compiled by the bank.

Underlying revenue fell four per cent to $15.1 billion compared with the same quarter a year ago, as plunging stock markets and slowing economic growth hit its business in Asia.

Overall, pre-tax profits jumped to $6.1 billion from $4.6 billion past year.

Its global bank and markets arm had an improved pre-tax profit of C$69 million, up $5 million or eight per cent. Gary Greenwood, a banking expert at Shore Capital, suggested that proposed changes to the levy and other regulations have removed a few of the pressure for the bank to move.

HSBC's shares were down 0.6 per cent at 504 pence on the London market at 0810 GMT, broadly in line with a weaker European bank index.

HSBC announced an agreement on Monday with the Shenzhen Qianhai Financial Holdings Co., Ltd.to establish a majority-owned joint venture securities company based in China's Guangdong Province. This year, it paid $28 million to move its ring-fence to its United Kingdom retail bank in a bid to separate it from riskier operations in the investment banking sector.

But Wong added it would be a long road before revenue growth resumes.

HSBC reduced its risk-weighted assets by another $32 billion and is nearly 30 per cent of the way towards its target of reducing those assets by $290 billion by the end of 2017, Gulliver said in the statement.

The bank is also considering moving its headquarters from Britain but said there was a "considerable amount of work still to do" before a decision is made.

Analysts believe the cost-cutting at HSBC, which in June said it plans to axe 25,000 jobs worldwide as part of its strategy to exit under-performing businesses and countries, will offset the impact of weakness in Asia and currency market volatility.

In May, the China Securities Regulatory Commission said it was focusing on implementing previously announced measures allowing financial institutions from Hong Kong and Macau to enter China's securities industry.