HSBC chief denies plans afoot to break banking group in two

The boss of HSBC has said moves to separate its eastern and western operations are not part of a plan to break up the banking group, as he announced a $3bn share buyback amid better-than-expected profits.

- Kalyeena Makortoff

Georges Elhedery pushed back against rumours that a huge restructuring plan announced last week was a sign he was considering hiving off parts of the banking group, which had been under pressure to do so by its largest shareholder, the Chinese insurer Ping An. Investors last year rejected Ping An's proposals.

"This is not either a precursor or an intent or a preparation for any split," the newly appointed chief executive said yesterday. "Our customers see us as a major financial institution offering them distinctive capabilities in our global connectivity," he added.

His comments came as the bank reported a 10% rise in pre-tax profits to $8.5bn (£6.6bn) in the three months to the end of September, thanks to a strong performance in its wealth division and wholesale banking arm. HSBC had been expected to report a 1.3% drop in profits to $7.6bn, according to analyst estimates.