HSBC says net profit jumps in third quarter but misses forecasts
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…
HSBC reported a rise in net profit for the third quarter, though it fell short of expectations. The bank's profit attributable to shareholders increased 45.5% year-on-year to US$7 billion from July to September, up from US$4.87 billion a year earlier. However, this figure was still below the US$7.3 billion market estimate. Pre-tax profit grew 32% to US$9.6 billion, with revenue up by US$800 million to US$18.6 billion.
The bank also announced a third interim dividend of US$0.10 per share and a second US$1 billion buyback. HSBC CEO Georges Elhedery stated that the bank is simplifying its operations to create greater capacity for investment and growth. Despite the positive results, HSBC's shares in Hong Kong dropped over 6% after the announcement, failing to recover the morning's gains.
The bank has been implementing cost-saving measures, including job cuts and an AI expansion, which have saved US$1.4 billion since 2025. Elhedery emphasized that the AI technology will transform industries, impacting some jobs while creating new opportunities.
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