HSBC Holdings third-quarter profit fell 25% to US$4.58 billion, missing analyst expectations. The bank set aside US$1.1 billion for a lawsuit related to Bernie Madoff’s fraud. Pre-tax profit dropped 14% to US$7.3 billion, while revenue rose 5% to US$17.8 billion. CEO Elhedery remains optimistic about the bank’s performance and targets for 2025.

HSBC announced a plan to privatize its Hang Seng Bank subsidiary, offering to buy outstanding shares for HK$155 each. Hong Kong remains the bank’s largest profit center, with pre-tax earnings growing by 11% to US$2.45 billion in the third quarter. The bank’s pre-tax profit for the first nine months of the year shrank by 23% to US$23.1 billion.

During the quarter, HSBC took US$1 billion in expected credit losses, including charges related to the Hong Kong real estate market. The bank is on track to achieve cost savings and has redeployed funds to high-growth markets in Asia. HSBC’s Hong Kong unit and Hang Seng set aside a combined US$384 million for bad debts, 21% less than a year earlier.

Read more at Yahoo Finance: HSBC’s 3rd-quarter profit dips amid falling interest rates, property slump, Madoff suit