HSBC said today that its third quarter operating profit was "significantly ahead" of the same period last year, helped by the first fall in bad loan write-offs from its American consumer finance arm since the start of 2006.

The global bank, which has a strong presence in Hong Kong and Asia, said that it had seen strong growth from investment banking.

Michael Geoghegan, the chief executive of HSBC, said that although operating profits would be ahead of the trading period between July and September last year, a one-off charge for the falling market value of its own bonds would drive third quarter profits below 2008.

But Mr Geoghegan said: "Global banking and markets maintained its record performance for the year to date."

The troubled US consumer finance business, which was closed to new business after the credit crunch, saw the first quarterly fall in loan impairment charges since the start of 2006.

The group's tier 1 ratio — a key measure of a bank's financial strength — increased to 10.3 per cent, and the core equity tier 1 capital ratio strengthened to 9 per cent.

Mr 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."

He added: "The more positive signals that we saw in the US run-off portfolio in the first half have continued, with the result that our North American operations did not require any capital support from the group during the quarter. We should have further evidence by the year-end as to whether this is a sustainable trend."

HSBC shares rose in early trading by more than 3 per cent to 714.5p.

Like Barclays, HSBC has chosen not to take funding from the Government although earlier this year it raised £12 billion through a rights issue — the biggest deal of its kind in the UK at the time. It has since been superseded by Lloyds which plans to raise £13.5 billion through a rights issue.

HSBC has been hit by the financial crisis and this month outlined plans to axe a further 1,700 jobs across the country, taking the bank's job cuts to 3,400 since December.

Recently the bank said that it was shifting Mr Geoghegan and his office to Hong Kong as part of a move to focus its growth in the Far East. It is keen to bring down the costs of its 1,400-site UK branch network.

Commenting on the outlook for the banking sector, Mr Geoghegan said today: "I believe that the biggest jolt has now passed through the global economy. But it is too early to claim victory, especially while unemployment is still rising in the West.

"The world will likely experience a two-speed recovery and emerging markets currently offer the brightest prospects for growth. Indeed, it now seems clear that they will drive the global recovery."

HSBC shares rose by more than 3 per cent in early trading to 713.3p

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