HSBC stock: Q3 profit rises as bank plans USD 1 billion buyback
Published on 10/30/2026 at 10:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSHSBC keeps targets after Q3 update
- Revenue increased in the third quarter, while profit growth benefited partly from the absence of prior-year legal provisions.
- Management retained its medium-term return, revenue growth and dividend payout targets.
- The bank approved an interim dividend and plans another capital return program before its 2026 full-year results.
HSBC Holdings reported stronger third-quarter earnings on Tuesday, October 27, while keeping its financial targets unchanged. The bank also announced plans for a new share buyback of up to USD 1 billion. HSBC outlined the results in its third-quarter earnings release.
Profit growth includes prior-year effects
Profit before tax rose 32 percent year on year to USD 9.6 billion in the three months to September 30, from USD 7.3 billion a year earlier. HSBC said the increase reflected a net favorable impact from notable items of USD 1.4 billion, mainly because legal provisions recorded in the prior-year quarter did not recur.
Constant-currency profit before tax excluding notable items increased to USD 10.0 billion from the prior-year period. Annualized return on average tangible equity reached 17.7 percent, or 18.2 percent excluding notable items, compared with 12.3 percent a year earlier on the reported basis.
Revenue growth led by banking income
Revenue increased to USD 18.6 billion from USD 17.8 billion. The rise was driven primarily by banking net interest income, while fee and other income also benefited from higher customer activity in wholesale transaction banking, debt and equity markets, investment distribution and private banking.
Net interest income rose 6 percent to USD 9.3 billion, and banking net interest income increased to USD 11.7 billion. The net interest margin remained stable at 1.57 percent. Expected credit losses fell 17 percent to USD 0.8 billion, helped by lower charges tied to Hong Kong commercial real estate and lower charges in parts of the UK and Mexico businesses.
Targets remain unchanged
HSBC continues to target return on tangible equity of at least 17 percent for 2026, 2027 and 2028, excluding notable items. The bank also expects year-on-year revenue growth through 2028, rising to 5 percent in 2028 on a constant-currency basis and excluding notable items.
For 2026, management retained its expectation for banking net interest income of at least USD 46 billion and an expected credit loss charge of around 45 basis points of average gross customer loans. The target dividend payout ratio remains 50 percent for 2026 through 2028.
Capital returns remain in focus
The board approved a third interim dividend of USD 0.10 per share. HSBC said it completed the previously announced USD 1 billion buyback on September 28 and intends to begin another buyback of up to USD 1 billion, with completion expected by the announcement of full-year 2026 results.
HSBC stock traded at 15.46 euros on Lang & Schwarz at 10:01 Berlin time on Friday, October 30, 0.39 percent below the Xetra close of Thursday, October 29. The real-time quote of HSBC stock provides the current trading reference.
HSBC Holdings plc at a glance
- Company: HSBC Holdings plc
- ISIN: GB0005405286
- Xetra ticker: HBC1.DE
- Lang & Schwarz quote: 15.46 euros on Friday, October 30, at 10:01 Berlin time
- Xetra reference: 15.52 euros, Thursday, October 29
- Change versus Xetra reference: -0.39 percent
Broader market context is available in the Current market reports.
Investors will focus next on whether HSBC can sustain banking income growth, control deposit costs and maintain wealth momentum as it approaches the 2026 full-year results. More news and analyses on HSBC stock are available in the company topic.
