HSBC third-quarter profit jumps 45.5pc but misses forecasts amid job cuts and AI push
HONG KONG, Oct 27 — Banking giant HSBC said Tuesday that net profit in the third quarter rose less than expected,...
HSBC reported a 45.5% increase in net profit for the third quarter, reaching US$7 billion, but this figure fell short of market expectations of US$7.3 billion. Despite this, pre-tax profit grew by 32% to US$9.6 billion, with revenue increasing by US$800 million to US$18.6 billion. CEO Georges Elhedery stated that the bank is simplifying its operations, investing in growth, and delivering strong returns for shareholders through job cuts and an AI push.
These measures have saved the bank US$1.4 billion since 2025. However, the results disappointed investors, with HSBC shares in Hong Kong dropping over 6% during afternoon trading. The bank is also planning significant cuts in its UK wealth management business, which could see 50% of management and specialist roles eliminated, while financial advisers face a 70% reduction.
HSBC remains confident in achieving its targets, including a return on tangible equity of 17% or better by 2028 and five% revenue growth in 2028 compared to 2027.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
