HSBC reported a 32% rise in third-quarter pretax profit to $9.6 billion on October 27, 2026, but stronger earnings did not prevent a share sell-off. Reuters reported that shares in Europe’s largest bank fell 6.7% during trading after revenue missed expectations amid slower growth in its wealth business.
The London-headquartered bank’s July-to-September profit compared with $7.3 billion a year earlier and a $9.7 billion average analyst forecast compiled by HSBC, according to Reuters. Its official release put quarterly revenue at $18.6 billion, an increase of about $800 million from the same period of 2025.
HSBC attributed much of the profit increase to the absence of $1.4 billion in legal provisions booked a year earlier. Higher banking net interest income and lower expected credit losses also helped. On a constant-currency basis, excluding notable items, pretax profit rose to $10 billion, making the distinction between reported and underlying performance significant.
The bank said net interest income rose 6% to $9.3 billion, supported by deposit growth and reinvestment of its structural hedge at higher yields. Its common equity tier 1 capital ratio stood at 13.9%, down 0.2 percentage points from June 30. That measure tracks a bank’s core capital relative to its risk-weighted assets.
For shareholders, HSBC approved a third interim dividend of $0.10 per share and said it intends to launch another buyback of up to $1 billion. It expects to complete the repurchases by its full-year 2026 results announcement. The proposed programme follows a separate $1 billion buyback completed on September 28.
Looking ahead, HSBC maintained its expectation of at least $46 billion in banking net interest income for 2026. It also retained a target for return on average tangible equity of 17% or better in 2026, 2027 and 2028, excluding notable items. The bank said its targets depend on the economic outlook, market conditions and customer behaviour.
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