HSBC lifts income outlook, though Madoff lawsuit charges mar profit

STORY: HSBC shares rose on Tuesday (October 28) as it lifted its income outlook.The lender also vowed to shift into a growth pattern with its takeover of Hang Seng Bank.The stock jump came despite a large drop in third-quarter profit blamed on $1.4 billion in legal charges.Pretax profit slipped 14% to $7.3 billion for the third quarter - below analyst projections.The bank was hit by $1.1 billion in charges after losing part of an appeal in a lawsuit tied to Bernard Madoff's Ponzi scheme.HSBC also made a $300 million provision against French investigations into European banks' dodging of dividend tax payments.Looking ahead, HSBC now expects to make $43 billion in net interest income this year.That'a a rise of $1 billion from its June estimate.It cited slower-than-expected rate cuts in key markets like the UK and Hong Kong.The bank also slightly raised its return on equity target to the mid-teens or better, from an earlier estimate of mid-teens.Shares in Europe's biggest bank were up 3% in early trade in London.

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