HSBC reports Q3 EPS 28c vs. 34c last year

Reports Q3 revenue $17.8B vs. $17B last year. Reported profit before tax of $7.3B was $1.2B lower compared with 3Q24. The reduction reflected an increase in operating expenses, mainly from notable items in 3Q25, including legal provisions of $1.4B. This was partly offset by revenue growth, which included an increase in banking net interest income and a strong performance in Wealth, while fee and other income fell in Global Foreign Exchange and in Debt and Equity Markets. Profit after tax of $5.5B was $1.2B lower than in 3Q24. Constant currency profit before tax excluding notable items was $9.1B, an increase of $0.3B or 3% compared with 3Q24, as revenue growth, driven by continued strong performance in Wealth, was partly offset by a rise in operating expenses due to planned investment and inflationary impacts. Annualised return on average tangible equity in 3Q25 was 12.3%, compared with 15.5% in 3Q24. Excluding notable items, annualised RoTE in 3Q25 was 16.4%, a rise of 0.5 percentage points compared with 3Q24. Net interest margin of 1.57% increased by 11 basis points compared with 3Q24, including a benefit from the non-recurrence of a loss on the early redemption of legacy securities in 3Q24, partly offset by the disposal of our business in Argentina. NIM increased by 1bps compared with 2Q25, as a rise in NII was partly offset by an increase in average interest-earning assets. Common equity tier 1 capital ratio of 14.5% decreased by 0.1 percentage points compared with 2Q25, driven by a reduction in CET1 capital, which reflected the recognition of $1.4B of legal provisions in 3Q25, partly offset by a decrease in risk-weighted assets. The decrease in RWAs was mainly driven by a reduction in market risk RWAs, and methodology and policy changes in credit risk RWAs. Georges Elhedery, Group CEO, said: “We are becoming a simple, more agile, focused bank, built on our core strengths. The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters. The positive progress we are making gives us confidence in our ability to upgrade our targets and we now expect 2025 RoTE excluding notable items to be mid-teens, or better. We remain fully focused on helping our customers navigate new economic realities, putting their changing needs at the heart of everything we do.”