HSBC stock: Q3 profit jumps as buyback and outlook hold

HSBC Holdings reported stronger third-quarter results on October 27, 2026, while keeping its financial targets unchanged. In its 3Q26 earnings release, the bank said profit before tax increased 32 percent from a year earlier to 9.6 billion US dollars.

The headline increase included a favorable 1.4 billion US dollar effect from notable items, mainly because legal provisions recorded in the third quarter of 2025 did not recur. Excluding notable items, constant-currency profit before tax rose by 0.9 billion US dollars to 10.0 billion US dollars. Profit after tax increased 38 percent to 7.6 billion US dollars.

Revenue growth remains broad based

Revenue rose 0.8 billion US dollars to 18.6 billion US dollars, driven mainly by banking net interest income. HSBC also cited higher fee and other income in Corporate and Institutional Banking, Wealth and other businesses. Revenue excluding notable items on a constant-currency basis increased to 18.7 billion US dollars.

Net interest income advanced 6 percent to 9.3 billion US dollars, while banking net interest income increased by 0.6 billion US dollars to 11.7 billion US dollars. The net interest margin held steady at 1.57 percent. Expected credit losses fell 17 percent to 0.8 billion US dollars, although the bank continued to monitor commercial real estate and other credit exposures.

HSBC stock traded at 15.75 euros on Lang & Schwarz at 11:47 CET on Wednesday, November 4, 4.30 percent above the Xetra close of Tuesday, November 3, at 15.10 euros. Investors can follow the real-time quote of HSBC stock.

Capital returns remain central

The board approved a third interim dividend of 0.10 US dollars per share. HSBC completed a 1 billion US dollar buyback on September 28 and intends to start another repurchase of up to 1 billion US dollars, which it expects to complete by the announcement of its 2026 full-year results.

Management retained its target for banking net interest income of at least 46 billion US dollars in 2026. It also maintained a return on average tangible equity target of 17 percent or better for 2026 through 2028, excluding notable items, and a 50 percent dividend payout ratio target through 2028.

The bank expects operating expenses to rise by approximately 1 percent in 2026 on a target basis and continues to forecast a credit-loss charge of around 45 basis points of average gross customer loans. HSBC said Basel 3.1 rules could benefit its common equity tier 1 ratio by approximately 40 to 50 basis points from January 1, 2027.

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