City reaction: HSBC's market-beating Q3 figures including £884m YOY profit jump show further 'incremental progress'

Banking giant HSBC has seen its quarterly profits jump by $1 billion (£884.2 million) compared with last year as it raked in more income from rising interest rates.

The lender reported adjusted pre-tax profits for the three months to September 30 of $6.5bn, up from $5.5bn a year earlier. It also beat market expectations, which had predicted $6bn in profits for the quarter, while also announcing the departure of chief financial officer and executive director Ewen Stevenson, who will leave in April. The surprise move will see Georges Elhedery step into the role, as the lender focuses on its "long-term succession planning" following a three-year transformation programme.

The bank saw its net interest margin – a key measure of the returns it makes on loans – increase to 1.57 per cent in the third quarter from 1.19 per cent a year ago. This has been bumped up by a rise in the Bank of England's base rate in recent months, which has made it more expensive for people to borrow and driven up mortgage rates, but banks are able to make higher profits as they can take in more money from people's loan repayments.