HSBC says it will buy back $2 Billion in stock! Eyes future in Asian Markets!

HSBC announced a $2 billion stock buyback and a surge in third-quarter net profit as the lender navigated rising geopolitical and property-market risks in China.

Notably, it earned $3.54 billion in the three months to the end of September, up from $1.36 billion in the same period last year. Like most of the banks, the profits are lifted by the release of the money that was set aside last year due to the pandemic. Analysts had expected HSBC to report a profit of $2.22 billion. Revenue was roughly flat at $12 billion.

Here’s what the CFO and CEO said

Chief Financial Officer Ewen Stevenson said in an interview that the bank might announce additional buybacks next year.

“While we retain a cautious outlook on the external risk environment, we believe that the lows of recent quarters are behind us,” HSBC Chief Executive Noel Quinn said in a statement. That, along with the group’s “strong capital position,” enabled HSBC to announce a share buyback of up to $2 billion that will commence soon, he added.

In the news, HSBC is planning to take on the lucrative Asian Markets and has planned to sell the French and US retail banking operations this year.

HSBC posts promising numbers and seem to move to China.

Does the stock have potential growth or is China risky? Thoughts?