Profitability for the first nine months of 2009 was stronger than our expectations at the start of the year, as positive trends experienced in the first half continued into the third quarter. As a result, year to date pre-tax profit was ahead of the comparable period in 2008 on an underlying basis, excluding movements in fair value on our own debt related to credit spreads. On the same basis, pre-tax profit for the third quarter of 2009 ('Q3 2009') was significantly ahead of Q3 2008. On a reported basis, HSBC's performance in Q3 2009 was lower than in Q3 2008, largely due to fair value movements on our own debt caused by tightening credit spreads.

Building on its exceptional first-half results, Global Banking and Markets maintained its record performance for the year to date. In the US consumer finance run-off portfolio, loan impairment allowances declined in the quarter, representing the first quarterly fall since the start of 2006. In emerging markets, revenues in Personal Financial Services and Commercial Banking held up well and, with the exception of the Middle East, loan impairment charges were notably lower than in the preceding quarter as economic conditions improved. Tight cost control also ensured that total costs for the year to date compared favourably with 2008.

The Group's tier 1 ratio increased to 10.3 per cent, and the core equity tier 1 capital ratio strengthened to 9.0 per cent. HSBC maintained its strong liquidity position, with its published advances-to-deposits ratio remaining under 80 per cent. On 2 November, the Board declared a third interim dividend of US$0.08 per ordinary share, with a value of approximately US$1.4 billion, bringing total dividends in respect of the first nine months to US$4.2 billion. Capital generation comfortably exceeded dividends in each quarter.

Group Chief Executive, Michael Geoghegan, said:
"Thanks to a highly diversified business model, a clear and unchanged strategy and a focus on banking fundamentals, HSBC continues to deliver broadly based profits at this pivotal stage of the business cycle.

"At a time when economic conditions have remained challenging and public trust in banks has been seriously compromised, we are attracting new customers in our target segments. We have maintained our strong deposit base and we continue to lend to and support customers through difficult times."