HSBC third-quarter profit rises 32% as bank announces up to $1 billion buyback
HSBC reported $9.6 billion in pretax profit for July through September. The increase partly reflects legal provisions booked a year earlier that did not recur.
HSBC's pretax profit rose 32% to about $9.6 billion in the July–September quarter, and the bank announced a share buyback of up to $1 billion on October 27, Reuters reported. The result matters to shareholders because the bank also maintained its interim dividend, although part of the year-on-year profit increase reflects legal provisions booked a year earlier that did not recur.
The buyback matches the amount announced for the previous quarter, according to Reuters. HSBC set the interim dividend at 10 cents per share, also unchanged from the previous quarter. CNBC reported that the new buyback is planned for completion by the end of 2026; Reuters' report did not specify a completion date.
What drove HSBC's third-quarter profit increase
Reuters attributed the higher profit partly to interest rates supporting net interest income and to the absence of legal provisions recorded in the comparable quarter of 2025. CNBC put those prior-year provisions at $1.4 billion. That comparison means the 32% increase does not, by itself, measure growth in the bank's underlying business.
CNBC reported revenue of $18.6 billion, up from $17.8 billion a year earlier, alongside higher fee income from corporate and institutional banking and wealth. Net interest income rose 6% to $9.3 billion, which CNBC linked to deposit growth and higher yields on reinvestments in HSBC's structural portfolio.
Expected credit losses fell 17% from a year earlier to $800 million, Reuters reported. The reduction reflected lower charges linked to Hong Kong real estate and HSBC's wealth businesses in the UK and Mexico. Lower credit losses also helped the quarterly earnings comparison.
How the result compared with estimates
CNBC reported pretax profit of $9.63 billion against HSBC-compiled expectations of $9.69 billion. The South China Morning Post rounded those figures to $9.6 billion and $9.7 billion, respectively, and put profit in the year-earlier quarter at $7.3 billion. CNBC said revenue was below the $18.93 billion consensus estimate it cited.
Operating expenses fell 12% year on year to $8.8 billion, largely because the earlier legal provisions did not recur, CNBC reported. Excluding notable items, expenses rose amid inflation and increased spending on technology. Those two measures describe different comparisons and help explain why the headline cost decline should be read alongside the underlying expense trend.
HSBC's outlook after the results
HSBC maintained its forecast for banking net interest income of at least $46 billion in 2026, CNBC reported. It also reiterated a target for return on average tangible equity of at least 17% for 2026 through 2028, excluding notable items. The bank expects annual revenue growth through 2028 and targets 5% growth in 2028 compared with 2027 on a constant-currency basis, excluding notable items.
Read in depth: Business
India to reissue ₹33,000 crore of government bonds on October 30
Auction of four dated securities via RBI, including 6.20% GS 2029 and 7.63% GS 2056, signals continued borrowing at prevailing yields with an option to retain extra ₹2,000...
Microsoft buyout offers include level-based severance, stock vesting and health coverage
Offers reviewed by Business Insider show how US severance terms vary by employee level. Microsoft says about 60,000 workers are eligible for the voluntary program.
Sources and context
- HSBC's third-quarter profit jumps 32%, launches buyback of up to $1 billionReuters, republished by CNA
- HSBC announces share buyback of up to $1 billion as third-quarter profit meets estimatesCNBC
- Developing | HSBC’s pre-tax profits rise 32% in third quarter amid US$1b share buy-backSouth China Morning Post
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.