HSBC (HSBC), Europe’s largest bank, has reported mixed financial results for this year’s third quarter and announced a new $1 billion U.S. stock buyback authorization.
The London-based lender announced that its pre-tax profit increased 32% from a year earlier to $9.60 billion U.S. However, that fell short of the $9.69 billion U.S. expected on Wall Street.
Revenue during the quarter totaled $18.60 billion U.S., which was below the consensus forecast among analysts of $18.93 billion U.S. Sales were up 5% from a year earlier.
HSBC also reported that its net interest income rose 6% due to higher fee income from its corporate and institutional banking and wealth businesses.
Additionally, the bank posted a return on tangible equity, a measure of profitability, of 18.8%, ahead of its own guidance that called for 17%.
Looking ahead, HSBC maintained its previous forecast that calls for banking net interest income of $46 billion U.S. this year and a return on tangible equity of 17%.
The bank also expects revenue to grow annually through 2028, targeting 5% growth that year compared with 2027.
There have been reports in recent days that HSBC is planning significant job cuts in its British wealth management business as it adopts artificial intelligence (A.I.) technologies.
However, no layoffs were announced with the lender’s financial results.
HSBC did announce a new $1 billion U.S. stock buyback initiative, which it plans to complete before its full-year 2026 results are issued in early 2027.
HSBC stock is down 7% on news of its latest financial results. Over the past 12 months, the bank’s share price has gained 35% to trade at $91.21 U.S. in New York.
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