HSBC Q3 pretax profit rises 32% on higher interest income
HSBC Q3 pretax profit rises 32% on higher interest income
Overview
Banking giant's Q3 pretax profit rose 32% yr/yr, driven by higher net interest income
Q3 net interest income grew to $9.3 bln, reflecting deposit growth and higher yields
CET1 capital ratio for Q3 declined to 13.9%, reflecting increased risk-weighted assets
Outlook
HSBC expects banking NII of at least $46 bln in 2026
Company expects operating expenses to rise by approximately 1% in 2026 on a target basis
HSBC maintains medium-term operating range for CET1 capital ratio of 14% to 14.5%
Result Drivers
NET INTEREST INCOME - Q3 net interest income rose, driven by deposit growth and higher yields
LOWER OPERATING EXPENSES - Q3 operating expenses fell 12% yr/yr, mainly due to non-recurrence of legal provisions and cost reduction from organisational simplification
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Interest Income |
| $9.3 bln |
|
Q3 CET1 Capital Ratio |
| 13.9% |
|
Q3 Net Interest Margin |
| 1.57% |
|
Q3 Pretax Profit |
| $9.6 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for HSBC Holdings PLC is GBp1,640.00, about 20.1% above its October 26 closing price of GBp1,365.40
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)