HSBC Reports 3Q26 Profit of $9.6bn, Up 32% Year-over-Year
Banking net interest income was maintained by $0.0M to at least $46bn. HSBC reported 3Q26 profit before tax of $9.6bn, up 32% year-over-year, beating prior RoTE excluding notable items guidance of mid-teens with actual 18.2% annualised RoTE excluding notable items. Revenue increased 5% to $18.6bn, driven by growth in banking net interest income and fee income. For 9M26, profit before tax was $29.2bn, up 26% year-over-year. The company maintained full-year guidance for banking NII of at least $46bn, ECL of around...
Guidance updates
Forward guidance
Key takeaways
Profit before tax of $9.6bn in 3Q26 increased 32% year-over-year, primarily due to non-recurrence of $1.4bn legal provisions from 3Q25 and revenue growth
Annualised RoTE excluding notable items of 18.2% in 3Q26 exceeded prior guidance of mid-teens for FY2026
Revenue of $18.6bn increased 5% year-over-year, with banking NII up 6% to $11.7bn
Operating expenses of $8.8bn decreased 12% year-over-year due to $1.4bn favorable impact from notable items (non-recurrence of legal provisions)
Target basis operating expenses increased 1.4% year-over-year, on track for approximately 1% full-year growth
Dividend of $0.10 per share declared for 3Q26; $1bn share buy-back completed on September 28, 2026
New $1bn share buy-back announced, expected to complete by 2026 full-year results announcement
Key metrics
Disclosure changes
- Business combinations
HSBC completed the privatization of Hang Seng Bank in January 2026, expecting $0.5bn in annualised pre-tax revenue and cost synergies by end of 2028, with restructuring costs of $0.6bn.
The Hang Seng Bank privatization creates operational synergies and simplifies HSBC's Hong Kong structure. - Strategic transactions
Multiple business exits announced or completed in 2026: Australia retail banking sale to Blackstone (home and personal loans), Singapore insurance business sale to Allianz, retail banking sales in Egypt and Uruguay completed, Malta business sale pending, and review of Türkiye retail operations.
These disposals represent significant portfolio simplification and will generate estimated pre-tax gains of $1.8bn (Singapore insurance) and $0.3bn (Egypt) upon completion. - Capital and liquidity
CET1 ratio decreased to 13.9% from 14.1% at June 30, 2026, remaining within the 14%-14.5% medium-term target operating range. Basel 3.1 impact expected to be a benefit of approximately 40-50bps at January 1, 2027.
Capital position remains strong with expected regulatory capital benefit from Basel 3.1 implementation. - Risk management
Geopolitical developments, particularly the conflict in the Middle East, remain a source of uncertainty with potential impacts on Gulf operations, customers, and supply chains. ECL sensitivity to downside scenarios increased due to sustained oil price increases feeding through to elevated policy rates.
Increased ECL sensitivity to downside scenarios reflects elevated uncertainty from the Middle East conflict and higher oil prices.
Primary source
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