EarningsQ3 2026 Earnings Report
MX:HBCN Q3 2026 EPS Results
Actual EPS$39.45
Consensus EPS$41.37
Beat/MissMissed by -$1.92
One Year Ago EPS$33.82
MX:HBCN Q3 2026 Revenue Results
Actual Revenue$722.61B
Expected Revenue$356.65B
Beat/MissBeat by +$365.97B
YoY Revenue Growth+2.56%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeBefore Open
Conference CallTuesday, October 27, 2026
MX:HBCN Upcoming Earnings
HSBC Holdings's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:HBCN Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. HSBC reported broad-based revenue and profit growth, strong returns, deposit and lending growth, robust Wealth and transaction-banking performance, disciplined costs, reaffirmed guidance, and a planned buyback. The main challenges were Hong Kong and U.K. deposit competition, IWPB and disposal-related revenue pressure, Australian runoff, Asset Management margin compression, lower transaction volumes, and a modest quarterly decline in CET1. Management nevertheless expressed confidence in its targets, capital position, credit performance, and strategic execution.Company Guidance
Broad-Based Revenue and Profit Growth
Third-quarter revenue grew 5% year-on-year to $18.7 billion, broad-based across businesses and income lines. Profit before tax increased 10% to $10 billion, excluding notable items.
Strong Earnings per Share and Returns
Earnings per share, excluding notable items, increased 17%, partly benefiting from the reduction in minority interest following the privatization of Hang Seng Bank. Annualized return on tangible equity was 18.8% year-to-date, 1.1% higher than last year.
Guidance and Strategic Targets Reaffirmed
Management said it remains confident in meeting the targets set at the full year and that all guidance remains unchanged. Full-year banking NII guidance was reiterated at at least $46 billion, full-year 2026 credit guidance at around 45 basis points, and the 2026 target for cost growth at around 1%.
Simplification Savings Near Target
HSBC actioned $0.2 billion of simplification savings in the quarter, bringing cumulative savings to $1.9 billion of the $2 billion target set at the half year.
Share Buyback and Capital Distribution
HSBC announced an up to $1 billion share buyback. Management said capital deployment will continue to include a 50% dividend payout ratio, organic growth opportunities, and share buybacks as the preferred residual method of distributing capital.
Deposit Growth Across the Franchise
Deposits increased by $105 billion over the last 12 months, including held-for-sale balances. All four businesses grew deposits, and each delivered annualized return on tangible equity above 17%, excluding notable items.
Wholesale Transaction Banking Momentum
Wholesale Transaction Banking fee and other income increased 11% year-on-year as customers sought help navigating market complexity. Trade fees grew 5%, driven by continued growth in guarantees in Asia and the U.S., while payments increased 4% on higher volumes and card fees. Total Wholesale Transaction Banking revenue rose $0.8 billion, or 12% year-on-year.
Market Share Gains and Strong Foreign Exchange Performance
HSBC said it is gaining market share in Asia in trade. Foreign exchange had a particularly strong quarter, with revenue up 19% as client demand increased during a period of higher market volatility.
Securities Services Growth
Securities Services fee and other income increased 3%, reflecting new mandates and higher market valuations.
Strong Wealth Net New Money
Wealth net new money was $38 billion in Asia in the quarter and more than $95 billion year-to-date; globally, net new money was $41 billion. Management also reported good inflows of new-to-bank customers.
Private Banking and Investment Distribution Growth
Private Banking grew 16%, supported by growth in mandates and higher trading activity. Investment distribution increased 7% on higher mutual fund and structured product sales.
Strong Indian FCNR Franchise Performance
HSBC captured $14.5 billion of Foreign Currency Non-Resident deposits and was the largest international participant in the Reserve Bank of India's FCNR deposit scheme and the second-largest bank overall.
Stable Credit Performance
The third-quarter expected credit loss charge was $0.8 billion, equivalent to an annualized charge of 31 basis points as a percentage of loans and advances. Hong Kong commercial real estate had a very low net charge, overall performance remained broadly stable, and management said there was nothing of concern to call out for the fourth quarter.
Disciplined Cost Management
Cost growth was 1% year-on-year on a target basis, and HSBC said it remains on track to achieve its target of around 1% cost growth in 2026 compared with 2025. The target cost baseline, updated for foreign exchange, is $33.9 billion.
Hong Kong Franchise and Hang Seng Integration
Hong Kong deposits grew by $21 billion in the quarter. Following the privatization of Hang Seng Bank, HSBC announced the combined management team and is building common technology platforms to simplify operations, improve efficiency, and improve the customer experience.
Commercial Lending Growth
U.K. commercial lending grew 13% year-on-year. HSBC also reported continued lending growth in Hong Kong, CIB growth particularly in Asia, and broad-based loan growth across mortgages, trade-related operating lending, innovation banking, infrastructure lending, and sustainability-related lending.
Basel 3.1 Capital Benefit
HSBC estimated that the adoption of Basel 3.1 from January 1, 2027 will provide a 40 to 50 basis-point benefit to CET1, with benefits from lower sovereign-risk RWAs, SME exposure calculations, and foundational IRB treatment for large corporates. Management said the related Pillar 2A benefit would also be positive, although less significant.
Capital Position Supports Growth and Buybacks
HSBC generated 90 basis points of CET1 capital in the quarter and said its capital position supports continued growth and a further up to $1 billion buyback. Management said it remains comfortable operating at the lower end of its 14% to 14.5% target range.
Continued Investment in Growth Opportunities
HSBC said it is reallocating costs from nonstrategic or low-returning businesses toward growth opportunities, investing in wealth products, distribution channels, customer experience, common technology platforms, and businesses where it has scale and the right to play and win.
Customer Acquisition and Compliance Position
Monthly customer acquisitions remained at a normalized level of about 100,000 per month, consistent with the first half of the year and last year. Hang Seng account openings from Chinese Mainland customers more than doubled as HSBC deployed technology and improved customer journeys. Management said HSBC's compliance readiness allowed it to continue onboarding customers when some competitors paused.
Resilient Hong Kong Deposit and Lending Strategy
Management said Hong Kong deposit growth remains NII-positive and incremental, despite some marginal contribution reduction from deposit mix. HSBC intends to continue supporting growth on both sides of the balance sheet, supported by lending growth, expected GDP growth, and normalization in Hong Kong commercial real estate.
MX:HBCN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed