HSBC stock tracks profit rise and new USD 1 billion buyback

HSBC Holdings reported stronger third-quarter earnings on Tuesday, October 27, 2026, and paired the release with another capital return programme. In its 3Q 2026 earnings release, the bank said profit before tax rose 32 percent year on year to USD 9.6 billion.

The increase was helped by the absence of USD 1.4 billion in legal provisions recorded in the year-earlier quarter. Constant-currency profit before tax excluding notable items rose to USD 10.0 billion from USD 9.1 billion, while profit after tax increased 38 percent to USD 7.6 billion. HSBC's annualized return on average tangible equity was 17.7 percent, or 18.2 percent excluding notable items.

Revenue grows as credit losses fall

Revenue increased to USD 18.6 billion from USD 17.8 billion in the third quarter. Net interest income rose 6 percent to USD 9.3 billion, and banking net interest income reached 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, including a lower charge linked to Hong Kong commercial real estate. Operating expenses declined 12 percent to USD 8.8 billion, although that comparison also benefited from the non-recurrence of prior-year legal provisions. On a target basis, operating expenses increased 1.4 percent as HSBC continued to invest in technology and absorb inflation.

Buyback supports shareholder returns

The board approved a third interim dividend of USD 0.10 per share. HSBC also intends to begin a share buyback of up to USD 1 billion, which it expects to complete before announcing full-year 2026 results. The bank completed a previous USD 1 billion buyback on September 28.

Management said HSBC remains confident in its targets through 2028. The bank continues to target a return on tangible equity of at least 17 percent, revenue growth reaching 5 percent in 2028 on a constant-currency basis excluding notable items, and a 50 percent dividend payout ratio. For 2026, banking net interest income is still expected to reach at least USD 46 billion.

HSBC stock remains tied to execution

HSBC stock traded at EUR 15.34 on Lang & Schwarz at 12:12 CET on Tuesday, November 3, 2026. For investors, the results combine stronger reported profitability with a more favorable comparison base and continued capital distributions. The key test is whether underlying income growth, cost discipline and credit quality can sustain the bank's return targets after the one-off effects fade.

Use the real-time quote of HSBC stock for the current Lang & Schwarz indication.

HSBC Holdings key figures

• Company: HSBC Holdings plc
• ISIN: GB0005405286
• German ticker: HBC1.DE
• Lang & Schwarz quote: EUR 15.34 on Tuesday, November 3, 2026, at 12:12 CET
• Third-quarter profit before tax: USD 9.6 billion
• Third-quarter revenue: USD 18.6 billion
• Third interim dividend: USD 0.10 per share

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