HSBC Quarterly Profit Climbs, Plans $1 Billion Buyback

By Kosaku Narioka

HSBC Holdings reported higher third-quarter net profit and announced a new share buyback of up to $1 billion.

The London-based bank said Tuesday that net profit rose 45% from a year earlier to $7.09 billion for the three months ended Sept. 30. That still missed the estimate of $7.24 billion in a poll of analysts by data provider Visible Alpha.

The bank said quarterly results were supported by growth in banking net interest income and lower expected credit losses. The year-earlier bottom line was weighed by a $1.1 billion provision for a lawsuit tied to Bernie Madoff's multibillion-dollar Ponzi scheme.

Third-quarter pretax profit rose for its Hong Kong business, its U.K. business and its corporate and institutional banking business, while that of its international wealth and premier banking business fell.

HSBC said it will start a share buyback of up to $1 billion, which it expects to complete by the time it announces 2026 results.

Under Chief Executive Georges Elhedery, HSBC has been undergoing a broad strategic overhaul, cutting costs and streamlining operations.

"As we simplify HSBC, we are creating greater capacity to invest, grow and deliver strong returns for our shareholders," Elhedery said.

In recent months, HSBC has agreed to sell its Egypt retail banking business to Emirates NBD, its $25 billion Australian home and personal loan portfolio to private-equity firm Blackstone, and its Singapore life and health insurance business to Allianz for $2.1 billion.

Elhedery has also been pushing the lender to focus on its strengths: retail banking in the U.K. and Hong Kong, acting as a bridge to global markets for large companies, and helping wealthy clients with their finances.

The London-based bank in January completed a nearly $14 billion bid to buy out other shareholders in Hang Seng Bank, a smaller Hong Kong lender it had long controlled, as it seeks to bolster operations in one of its home markets.

HSBC said in September that Chief Financial Officer Pam Kaur would step down in 2027 and that a search for her successor is under way. Kaur assumed the role in January 2025, becoming the first female CFO in the bank's history.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

October 27, 2026 00:55 ET (04:55 GMT)