HSBC stock slips after Q3 revenue rises 5% to $18.7 billion

Published on 11/06/2026 at 12:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

HSBC stock keeps its 2026 targets after stronger third-quarter results. A new buyback supports the bank's capital-return plan.

Targets And Capital Returns

Reported third-quarter profit before tax rose 32 percent year on year, with notable items affecting the comparison.
Management retained its 2026 banking net interest income target and medium-term return and payout objectives.
The board approved a third interim dividend and plans another share buyback of up to 1 billion US dollars.

HSBC, GB0005405286, Illustration mit AI erstellt.

HSBC Holdings reported stronger third-quarter results on October 27, 2026, and maintained its financial targets. In its HSBC 3Q 2026 earnings release, the bank said reported revenue increased to 18.6 billion US dollars, while constant-currency revenue excluding notable items rose to 18.7 billion US dollars.

Reported profit before tax increased 32 percent year on year to 9.6 billion US dollars. The comparison benefited from the non-recurrence of 1.4 billion US dollars in legal provisions recorded in the third quarter of 2025. Excluding notable items and on a constant-currency basis, profit before tax rose by 0.9 billion US dollars to 10.0 billion US dollars.

Revenue Growth And Guidance

HSBC attributed the revenue increase mainly to higher banking net interest income. Fee and other income also grew in parts of Corporate and Institutional Banking and Wealth, supported by customer activity. Net interest income rose 6 percent to 9.3 billion US dollars, while banking net interest income increased to 11.7 billion US dollars.

The bank maintained its expectation for banking net interest income of at least 46 billion US dollars in 2026. It also retained its outlook for a credit impairment charge of around 45 basis points of average gross customer loans and target-basis operating expense growth of approximately 1 percent for the year.

For the medium term, HSBC remains committed to a return on average tangible equity of 17 percent or better in 2026, 2027 and 2028, excluding notable items. Management also continues to target revenue growth rising to 5 percent in 2028 compared with 2027 and a 50 percent target-basis dividend payout ratio.

Capital Returns Remain In Focus

The board approved a third interim dividend of 10 US cents per share. HSBC completed a 1 billion US dollar buyback on September 28 and intends to start another buyback of up to 1 billion US dollars, which it expects to complete with the 2026 full-year results announcement.

The real-time quote of HSBC stock traded at 15.50 euros on Lang & Schwarz at 12:10 CET on Friday, November 6, 2026, 1.15 percent below the Xetra close of Thursday, November 5.

The figures leave investors focused on the bank's ability to sustain revenue growth, control costs and convert stronger operating performance into capital returns. The notable-item effect on reported profit remains important when assessing the underlying trend.