HSBC shares fell 5.3% after the results, suggesting investors focused on pressure beneath the headline growth: IWPB revenue declined slightly, Hong Kong time-deposit margins came under pressure, and U.K. deposit competition intensified. Management held guidance unchanged, but banking NII growth also included one-off and other temporary benefits.
- Revenue rose 5% to $18.7 billion and profit before tax increased 10% to $10 billion, both excluding notable items; notable items reduced quarterly profit by $0.4 billion.
- Banking NII increased $0.6 billion year on year to $11.7 billion. The quarter-on-quarter increase included $0.1 billion each from one-offs, the structural hedge and day count; full-year guidance remains at least $46 billion.
- IWPB revenue fell slightly. Management cited strategic transactions and the non-recurrence of about $0.1 billion in prior-year insurance benefits; Asset Management growth was offset by margin compression.
- Credit guidance remains around 45 basis points for 2026 after a third-quarter ECL charge of $0.8 billion, or 31 basis points annualized. Cost growth was 1% year on year on a target basis, with the 2026 target unchanged.
- Wealth net new money in Asia was $38 billion in the quarter and more than $95 billion year to date; deposits increased $105 billion over 12 months, including held-for-sale balances.
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