HSBC REPORTS THIRD-QUARTER PROFIT RISE

HSBC reported a 32% rise in third-quarter pre-tax profit to $9.6 billion and announced a share buyback of up to $1 billion. The bank said profit attributable to shareholders rose 45.5% to $7 billion in the three months to September, from $4.87 billion a year earlier. Revenue increased by $0.8 billion to $18.6 billion, according to HSBC’s results. Its reported pre-tax profit of $9.63 billion was close to the $9.69 billion consensus estimate compiled by the bank. HSBC shares fell 2.95% in Hong Kong after the results.

HSBC said higher revenue and lower credit losses supported its earnings. The year-earlier quarter included $1.4 billion in legal provisions that did not recur this year. Banking net interest income rose 6% to $9.3 billion, which the bank linked to deposit growth and reinvestment at higher yields. HSBC also reported higher fee income from its corporate and institutional banking and wealth businesses. Operating expenses fell 12% to $8.8 billion, while expenses excluding notable items rose amid inflation and increased technology spending.

HSBC approved a third interim dividend of 10 cents per share. The new buyback follows a $1 billion buyback completed in the previous three months. Chief executive Georges Elhedery said: “As we simplify HSBC, we are creating greater capacity to invest, grow and deliver strong returns for our shareholders.” The bank said it remained confident in the targets it set earlier this year. HSBC said it continued to target year-on-year revenue growth from 2026 to 2028, reaching 5% in 2028 compared with 2027.