Rising interest rates have sent HSBC profits soaring as the banking giant set out plans to hand billions more dollars to its shareholders, reports the BBC.

Europe's biggest bank credited rising interest rates for a 240% lift to its latest quarterly profits.

They more than doubled to $7.7bn (£6.35bn) in the three months to September from the same period a year ago, although that was below forecasts.

The company, which has 327 UK branches and 39million global customers, said it had benefited from higher interest rates which allow it to charge more to lend to people and businesses.

It expects its net interest income, which is the difference between what it earns from lending money and the interest it pays to savers and depositors, to rise above $35bn this year.

In the latest results for the three months to 30 September, it rose to $9.2bn from $8bn in the same period last year.

Banks have been under pressure to pass on higher interest rates to savers, including from Chancellor Jeremy Hunt who said in June that it was "taking too long".

HSBC said that it would return a further $3bn to its shareholders, taking the total it will hand back to investors to $7bn this year. It will also pay out dividends.

Although the bank's profit jumped over the past three months, the figure fell short of the $8.1bn expected by analysts.

HSBC's operating expenses rose due, in part, to performance-related pay as well as higher technology costs and the impact of inflation.

Last week, the government announced that a cap on bankers' bonuses will be removed. It will come into force on Tuesday (Oct 31) nearly a decade after the measure was introduced following the 2008 financial crash.