HSBC Holdings (NYSE:HSBC) is preparing to announce its Q3 2023 results on Monday, October 30, following a second quarter characterized by increased revenues and slightly lower expenses, despite facing credit impairment challenges. The bank's investment banking revenues in Q3 were subdued due to geopolitical tensions, persistent inflation, and an economic slowdown that affected deal-making activities and advisory revenues.
Despite 26 initial public offerings (IPOs) raising $7.7 billion, the bank's equity and debt underwriting fees did not significantly grow. However, bond issuance volumes improved year-over-year. Additionally, trading revenues were restrained due to reduced market volatility and client activity, as the threat of a near-term recession receded and central banks maintained a hawkish monetary policy.
Loan balances at HSBC remained stable in Q3. High inflation rates led global central banks to keep interest rates elevated, which could potentially increase HSBC's interest income. The bank's expenses are also projected to rise due to its strategy of expanding its market share in the UK and China and improving its digital capabilities worldwide.
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