HSBC shares fall 6% as Q3 revenue misses despite 32% jump in profit to $9.6bn
HSBC's third-quarter pre-tax profit rose 32% to $9.6 billion and it announced another $1 billion buyback, but revenue of $18.6 billion fell short of forecasts and the bank did not raise its targets, sending its Hong Kong shares down about 6%.
At a glance
- HSBC reported third-quarter 2026 pre-tax profit of $9.6 billion on Tuesday, October 27, up 32% from a year earlier and broadly in line with analysts' $9.7 billion estimate.
- Revenue rose by $800 million to $18.6 billion but missed forecasts of about $19 billion; attributable net profit of about $7 billion was below the $7.3 billion expected.
- HSBC announced a new share buyback of up to $1 billion and an unchanged third interim dividend of $0.10 per share.
- Its Hong Kong shares fell about 6% to around HK$133.5 as investors were disappointed that the bank did not upgrade its guidance; the stock is still up about 9% this year.
- The bank kept its targets, including banking net interest income of at least $46 billion for 2026 and a return on tangible equity of 17% or better through 2028.
HSBC's shares fell about 6% in Hong Kong on Tuesday, October 27, 2026, after Europe's biggest bank reported third-quarter revenue below forecasts, even though its pre-tax profit jumped 32% to $9.6 billion and it announced a new $1 billion share buyback. Investors had hoped the London-headquartered, Asia-focused lender would raise its financial targets; instead it kept them unchanged.
The numbers
| Q3 2026 (July–September) | Result | Change / comparison |
|---|---|---|
| Pre-tax profit | $9.6 billion | +32% year on year; estimate $9.7bn |
| Profit after tax | $7.6 billion | +38% |
| Attributable net profit | about $7.0 billion | +45.5% (from $4.87bn); estimate $7.3bn |
| Revenue | $18.6 billion | +$0.8bn; forecast about $19bn |
| Wealth revenue | $2.7 billion | flat |
| Expected credit losses | $0.8 billion | −17% |
| Third interim dividend | $0.10 per share | unchanged |
| New share buyback | up to $1 billion | same size as last quarter |
The profit rise looks large partly because results a year earlier were weighed down by one-off charges. Net interest income — what the bank earns from lending over what it pays on deposits — came in slightly below expectations, and HSBC warned that competition for deposits in Hong Kong and the UK is likely to push up its interest costs. Wealth revenue was flat after two quarters of strong growth.
Market reaction
The shares gave up early gains and fell more than 6% to around HK$133.5 in afternoon trading in Hong Kong. Even after the fall, the stock is up about 9% so far this year. Chief financial officer Pam Kaur acknowledged that there is "sometimes a market expectation" that the bank upgrades its targets, and the bank said it remains confident of meeting its existing targets.
Background
Chief executive Georges Elhedery, who took over about two years ago, has been simplifying the bank — cutting management layers, selling or closing businesses in several countries and concentrating on Hong Kong, mainland China, India, the Gulf and wealth management in Asia. HSBC says these moves have saved $1.4 billion since 2025. Elhedery said the simpler structure is creating more room to invest, grow and return money to shareholders.
The bank is also leaning heavily on artificial intelligence. Elhedery said AI will change how work is done across industries, "impacting some jobs, transforming others". The bank has confirmed a consultation on changes to its UK wealth business, where sweeping cuts to relationship-manager and specialist roles have been reported.
Guidance
HSBC kept all its targets: - Banking net interest income of at least $46 billion in 2026. - Return on tangible equity of 17% or better each year through 2028. - Revenue growth each year from 2026 to 2028, rising to about 5% in 2028.
Why it matters
HSBC earns most of its profit in Asia and is one of the largest banks in Hong Kong, the UK and the Middle East. Its results are a guide to the health of trade finance, wealth and lending across the region. It is also a major bank in the Gulf, India and Bangladesh, and is widely held by pension funds and retail investors. Slower revenue growth and rising deposit costs suggest the boost banks got from high interest rates is fading — an important signal as central banks weigh rate moves while oil prices remain high. In the UK, the results come as unions and campaigners push for higher bank taxes in the upcoming budget, which the banks are lobbying against.
What happens next
The new $1 billion buyback starts shortly. HSBC will publish its full-year 2026 results in February 2027, when it is expected to update its targets. Investors will also watch whether deposit competition in Hong Kong and the UK squeezes interest income further in the fourth quarter.
Questions people are asking
How much profit did HSBC make in Q3 2026?
HSBC made a pre-tax profit of $9.6 billion in July–September 2026, up 32% year on year, and an attributable net profit of about $7 billion. Revenue was $18.6 billion.
Why did HSBC shares fall after its results?
The shares fell about 6% in Hong Kong because revenue of $18.6 billion missed forecasts of around $19 billion, wealth revenue was flat and the bank did not raise its performance guidance, which some investors had hoped for.
Is HSBC doing another share buyback?
Yes. HSBC said it will launch a new share buyback of up to $1 billion after completing its previous $1 billion programme, and it declared a third interim dividend of $0.10 per share.
