Third-quarter profits rose 32 percent, driven in part by the absence of a non-recurring legal provision and 6 percent increase in net interest income.
HSBC announces additional US$1 billion in share buybacks, guidance unchanged
Article by:
PUBLISHED:
HSBC reported its third-quarter earnings yesterday, disclosing an additional share buyback programme of up to US$1 billion alongside a third interim dividend of US$0.10 per share. The new repurchase scheme, expected to finish prior to full-year results, follows the successful execution of its previous US$1 billion programme in September.
The bank’s third-quarter revenue rose 6 percent to US$18.6 billion, while pre-tax profit grew 32 percent to US$9.6 billion. The profit growth was largely driven by stronger underlying revenues and a favourable base effect due to the absence of the non-recurring US$1.4 billion legal charge incurred in the third-quarter of last year.
Details of the HSBC third-quarter results
Performance was supported by a 5 percent increase in net interest income to US$11.7 billion during the quarter, bringing the year-to-date total to US$34.5 billion. Full-year net interest income guidance of approximately US$46 billion remains unchanged.
Overall net interest income rose 6 percent, reflecting deposit balance growth and higher yields from structural hedge reinvestments, offset in part by lower income from market treasuries.
[See more: How Macao’s investment law is plugging the funding gap]
Annualised return on average tangible equity (RoTE) reached 17.7 percent, up from 12.3 percent in the third quarter of 2025. Net interest margin held steady at 1.57 percent while Common Equity Tier 1 stood at 13.9 percent, down 20 basis points from the second quarter.
HSBC reaffirmed its medium-term financial targets, including a targeted RoTE of at least 17 percent annually through 2028. The bank also noted significant progress on its updated cost-savings plan, having achieved US$1.9 billion of its US$2.0 billion target. The bank had initially outlined US$1.5 billion in identified savings.
Hong Kong-listed shares of the London based bank fell 6 percent on Tuesday as investors were hoping for a larger earnings boost, or upgraded guidance outlook, amid a rising interest rate environment.
The results come just days after the bank launched HSBC RedCoin, an Hong Kong dollar-denominated stablecoin licensed and regulated by the Hong Kong Monetary Authority. RedCoin will be available to the bank’s 3.3 million PayMe users and the more than 100,000 merchants that use the payment platform.
