HSBC says net profit jumps in third quarter but misses forecasts

Business Recorder · 27/10/2026، 7:39:46 AM

HONG KONG: Banking giant HSBC said Tuesday that net profit in the third quarter rose less than expected, as it carries out sweeping job cuts and an AI expansion. Profit attributable to shareholders rose 45.5 percent year-on-year to US$7 billion from July to September, the bank said in a filing to the Hong Kong stock exchange. That figure was up from US$4.87 billion a year earlier, but fell short of the US$7.3 billion market estimate. HSBC has been carrying out job cuts and a global restructuring since CEO Georges Elhedery took the helm two years ago, turning the London-headquartered bank’s focus to core Asian markets. Pre-tax profit in the third quarter grew 32 percent to US$9.6 billion, with revenue increasing by US$800 million to US$18.6 billion, the filing said. HSBC also approved a third interim dividend of US$0.10 per share, and announced a second US$1 billion buyback after completing one in the previous three months. “As we simplify HSBC, we are creating greater capacity to invest, grow and deliver strong returns for our shareholders,” Elhedery said in the filing. HSBC prices $348.3 million Samurai bond sale, term sheet shows The third quarter performance “shows that in a more complex world, clients continue to turn to us to navigate uncertainty and seize new opportunities”, he added. However, Tuesday’s results left investors disappointed. Shares in Hong Kong plunged more than 6 percent, at around HK$133.5 apiece, during afternoon trading, wiping out the morning’s gains. Cuts and AI Restructuring and cost-saving actions, which include selling off a series of business units this year, have saved the bank US$1.4 billion since 2025, according to its report. HSBC has also been increasingly adopting artificial intelligence in its operations, which Elhedery has said “will change how work is done across industries, impacting some jobs, transforming others.” The lender told AFP this month that it was “in a consultation period” after the Financial Times reported it was