HSBC announces US$1 billion buyback after profit growth misses
This is HSBC's second consecutive quarterly buyback.
HSBC Holdings has announced plans to buy back shares worth US$1 billion (S$1.28 billion) following a decline in third-quarter earnings that fell short of estimates. The London-based bank, led by CEO Georges Elhedery, has resumed stock repurchases for the second consecutive quarter after temporarily halting its program. HSBC reported a pretax profit of US$9.6 billion in the third quarter, missing the company's own estimate of US$9.7 billion, largely due to higher interest rates.
In a statement, Elhedery stated, "Our performance shows that in a more complex world clients continue to turn to us to navigate uncertainty and seize new opportunities." Over the past few years, the bank has undergone significant restructuring under Elhedery's leadership, including closing, selling, or merging various business lines and cutting thousands of jobs to focus on core Asian markets.
Investors have praised the restructuring efforts, with the bank's shares more than doubling in value under his tenure and rising about 15% in 2026. Wealth management has been one of HSBC's fastest-growing divisions, as the lender targets the growing number of affluent individuals in Asia for investment. Despite a challenging environment with higher costs, HSBC reported double-digit growth in the second quarter, driven by favorable conditions in China.
The bank has indicated it may increase its bonus pool if its strong performance persists into the second half of 2026.
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