Why it matters
- HSBC said Tuesday, Oct. 27, that third-quarter revenue rose to $18.6 billion, short of the roughly $19 billion analysts expected, Reuters reported. Pretax profit rose 32% to $9.6 billion, in line with estimates.
- HSBC shares closed down 5.6% at HK$134.30 in Hong Kong, down 5.4% at 1,291.4 pence in London and down 5.7% at $86.01 in New York, Yahoo Finance daily data show.
- The bank kept its 2026 targets and announced another buyback of up to $1 billion, but did not raise guidance, which Reuters said disappointed investors.
Updated Oct. 27, after the U.S. close: HSBC closed at 1,291.4 pence in London on Tuesday, down 5.4% from Monday's close of 1,365.4 pence, after trading as low as 1,263.6 pence, according to Yahoo Finance daily data. Its U.S.-listed shares closed at $86.01, down 5.7% from Monday's $91.21, after trading between $84.89 and $86.57. The FTSE 100 closed down 0.8% at 10,686.54.
HSBC shares fell sharply on Tuesday, Oct. 27, after the bank's third-quarter revenue missed analysts' forecasts and growth in its wealth business stalled. The stock closed down 5.6% at HK$134.30 in Hong Kong, from Monday's close of HK$142.20, according to Yahoo Finance data.
In London, HSBC traded at about 1,272 pence at 12:58 p.m. GMT, down 6.8% from Monday's close of 1,365.4 pence. Its U.S.-listed shares traded at about $85.27 at 9:13 a.m. ET, down 6.5% from Monday's close of $91.21, Yahoo Finance data show. The FTSE 100 was down about 0.9% at the same time.
What did HSBC report for the third quarter?
Revenue rose $0.8 billion from a year earlier to $18.6 billion, HSBC said in its earnings release. Analysts had forecast about $19 billion, Reuters reported. Pretax profit rose 32% to $9.6 billion, which Reuters said was in line with estimates.
Most of the profit gain came from a one-off: a year ago HSBC booked $1.4 billion of legal provisions that did not recur, the bank said. Excluding notable items and at constant currency, pretax profit rose to $10.0 billion from $9.1 billion.
| Measure (3Q26) | Result | Year earlier |
|---|---|---|
| Revenue | $18.6 billion | $17.8 billion |
| Pretax profit | $9.6 billion | $7.3 billion |
| Net interest income | $9.3 billion | $8.8 billion |
| Return on tangible equity | 17.7% | 12.3% |
| CET1 capital ratio | 13.9% | 14.1% at June 30 |
Source: HSBC 3Q26 earnings release. The CET1 comparison is with June 30, 2026.
Why are HSBC shares falling?
Investors wanted more than in-line profit. Wealth revenue was flat at $2.7 billion, after year-on-year growth of 15% and 23% in the first two quarters, and net interest income slightly missed forecasts, Reuters reported. HSBC did not upgrade its guidance, which Reuters said investors had focused on.
Chief Financial Officer Pam Kaur said there is sometimes a market expectation that HSBC will upgrade its guidance or targets, according to Reuters. Jefferies analysts said a shift by Hong Kong customers into higher-rate time deposits is expected to erode margins, Reuters reported.
The bank's common equity tier 1 ratio, a key measure of capital strength, slipped 0.2 percentage point to 13.9%. That is below HSBC's target operating range of 14% to 14.5%, according to the release.
What is HSBC's outlook?
HSBC kept its targets. It still expects banking net interest income of at least $46 billion in 2026 and a return on tangible equity of 17% or better, excluding notable items, for 2026 through 2028. The board approved a third interim dividend of $0.10 per share, and HSBC plans a new share buyback of up to $1 billion, the same size as last quarter's.
The results also land a day before the U.K. budget on Wednesday, Oct. 28. Unions and activist groups have called for higher taxes on U.K. banks, Reuters reported.
For more earnings coverage, see our company news section, the markets section and the latest global market news on the home page.
Sources
- HSBC Holdings plc, Earnings Release 3Q26 (Oct. 27, 2026)
- Reuters via RTÉ, HSBC shares tumble 6% after Q3 revenue disappoints (Oct. 27, 2026)
- Yahoo Finance, chart data for HSBC in Hong Kong (0005.HK), HSBC in London (HSBA.L), HSBC U.S. shares (HSBC) and the FTSE 100
