HSBC third-quarter profit rises 32% but shares fall on results below forecasts

Profit rises on higher rates

HSBC reported third-quarter pre-tax profit of $9.6bn for the three months to 30 September, 32% higher than a year earlier. Revenue reached $18.6bn, up 5%. Both figures came in slightly below analyst expectations. The London-based lender, Europe's biggest bank by market value, said rising interest rates helped its earnings, and its wealth management business in Asia continued to contribute.

Other measures show a similar picture. Quarterly net profit was $7.6bn, up $2.1bn or 38%, and return on average tangible equity rose to 17.7% from 12.3% a year earlier. For the first nine months of 2026, net profit reached $21.716bn, up 32.55%, while revenue rose 8.58% to $56.362bn. HSBC linked the growth in income mainly to higher net interest income in banking. Chief executive Georges Elhedery framed the results in a statement:

“Our performance shows that in a more complex world clients continue to turn to us to navigate uncertainty and seize new opportunities.”

Shares fall and buyback continues

Investors reacted negatively. In Hong Kong trading, where the shares are listed, the stock fell between 5% and 6.8% after the figures, depending on the report. The shares remain about 13% higher this year, but they have dropped more than 10% over the past month, partly because Beijing has scrutinised overseas Chinese wealth.

HSBC announced a new share buyback of up to $1bn, to be completed before the publication of its full-year 2026 results. The programme follows a previous $1bn buyback that the bank completed on 28 September 2026. The bank also declared a third interim dividend of $0.10 per share, unchanged from the previous quarter.

Costs, credit and capital

Operating expenses fell to $8.8bn from $10.1bn a year earlier, as Elhedery pushed a cost-cutting drive. In August 2026 HSBC raised its restructuring savings target to $2bn annualised by the end of this year, up from $1.5bn. The bank also booked an extra $200m of costs this quarter linked to plans to simplify operations.

Q3 202510.1

Q3 20268.8

Q3 2025

10.1 $bn

Q3 2026

8.8 $bn

Data from the article text

Expected credit losses fell 17% to $800m, helped by lower charges tied to Hong Kong property and to wealth management in the UK and Mexico. Wealth management revenue, however, stayed flat at $2.7bn, compared with growth of 15% and 23% in the first two quarters of the year. HSBC said reforms known as Basel 3.1 should add up to half a percentage point to its core capital ratio, a bigger effect than the 'modest benefit' it had previously described.

UK tax pressure and outlook

Campaign groups in the UK, HSBC's home market, have pushed for higher bank taxes after the strong profits. The finance minister's first budget is due on Wednesday, 28 October 2026. Bank executives have lobbied hard against a sector-specific tax increase, arguing it would curb lending and make Britain less competitive. HSBC said it expects to reach the financial targets it set in February 2026.