HSBC's net interest income swelled by 30% to USD8.6bn in Q3, the highest in eight years, mainly due to rising interest rates. Net interest margin rose to 1.57%, climbing 22 basis points from Q2. The bank raised its guidance for net interest income this year to USD32bn and expected to make USD36bn in 2023. It said it remains on track to keep costs stable compared to last year. But the bank signalled share buybacks were unlikely to return until a measure of its capital strength moves higher. HSBC said it needs to boost its core capital level of 13.4% back above 14% before it can resume buybacks and dividends. It also warned a full return to pre-pandemic levels of social interaction across all its key markets remains unlikely in the short to medium term.
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