HSBC (HSBA.L) has seen its quarterly profits jump by 10%, allowing the UK-based lender launch another multibillion-dollar stock buyback.

The London-headquartered bank revealed that its pre-tax profits rose to $8.5bn (￡6.6bn) in the three months ending September, driven by strong performances in both its wealth division and wholesale banking arm.

Backed by these solid results, Europe’s largest bank has unveiled an additional $3bn share buyback plan, which brings the total return to shareholders for the year to $9bn, including previously completed share repurchases. The board has also approved a third interim dividend of $0.10 per share, translating to an additional $1.8bn in dividends for investors.

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HSBC's stock was the top performer on the FTSE 100 (^FTSE)this morning, following its profit exceeding expectations.

Overall revenue increased by 5% year on year to $17bn, outpacing analysts' predictions of $16.22bn, largely attributed to heightened customer activity in wealth products.

The bank noted that increased client engagement was significantly influenced by China’s stimulus measures introduced in September. "These measures resulted in elevated volatility at the end of Q3 2024, leading to increased client activity, particularly in wealth, equities, and global foreign exchange in Hong Kong. We continue to monitor the impact of these measures into the fourth quarter," HSBC said.

However, net interest income (NII) fell by 17% compared to the same quarter last year, attributed to "business disposals, higher interest expense on liabilities, and a loss on the early redemption of legacy securities".

New chief executive Georges Elhedery, who assumed the role last month, said: “We delivered another good quarter, which shows that our strategy is working.”

Elhedery announced last week that the bank would establish its Hong Kong operation and its UK retail bank as standalone units. The lender intends to categorise its other businesses into “eastern markets” in Asia-Pacific and the Middle East and “western markets”, which encompass operations in the UK, Europe, and the Americas.

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This strategic shift has reignited speculation regarding HSBC's potential for an eventual split amid escalating geopolitical tensions between Beijing and the West. Nevertheless, Elhedery said that the change in strategy “does not signal intention to split the group".

Richard Hunter, head of markets at Interactive Investor, said the share buyback would be appealing to investors.