HSBC (NYSE:HSBC) Releases Quarterly Earnings Results, Misses Expectations By $0.10 EPS

HSBC (NYSE:HSBC) released its earnings results on Tuesday. The financial services provider reported $2.10 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.20 by ($0.10), FiscalAI reports. HSBC had a return on equity of 13.80% and a net margin of 18.19%. The firm had revenue of $18.68 billion during the quarter, compared to analysts’ expectations of $18.98 billion.

Here are the key takeaways from HSBC’s conference call:

• Strong, broad-based quarter: Revenue rose 5% to $18.7 billion and profit before tax increased 10% to $10 billion, excluding notable items. HSBC maintained its full-year guidance, with year-to-date return on tangible equity at 18.8%.
• Capital supports further shareholder returns: HSBC announced an additional share buyback of up to $1 billion, supported by a 13.9% CET1 ratio and an estimated 40–50 basis-point CET1 benefit from Basel 3.1 adoption in 2027.
• Cost discipline remains on track: The bank delivered $0.2 billion of simplification savings in the quarter, bringing cumulative savings to $1.9 billion of its $2 billion target, while target-basis cost growth was held to 1% year over year.
• Deposit mix is creating margin pressure: Hong Kong customers continued shifting from low-cost CASA balances into time deposits, while U.K. deposit competition also intensified. Management said deposit growth remains NII-positive and reiterated banking NII guidance of at least $46 billion.
• Strategic disposals will weigh on future revenue: HSBC expects cumulative revenue attrition of about $2.2 billion through 2028 from business disposals, including Australia retail banking and life-insurance transactions, although it expects redeployed costs to generate new growth over time.

HSBC Stock Performance

Shares of HSBC stock opened at $85.04 on Tuesday. The stock has a market cap of $291.56 billion, a PE ratio of 12.06, a price-to-earnings-growth ratio of 0.88 and a beta of 0.58. The company has a current ratio of 0.85, a quick ratio of 0.92 and a debt-to-equity ratio of 0.67. HSBC has a 12 month low of $67.56 and a 12 month high of $107.92. The company’s fifty day moving average price is $100.05 and its 200-day moving average price is $93.17.

HSBC Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, August 14th were issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Friday, August 14th. HSBC’s payout ratio is 28.09%.

Trending Headlines about HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Third-quarter profit before tax rose 32% year over year to $9.6 billion, supported by higher net interest income, lower expected credit losses and cost reductions. HSBC also announced a share buyback of up to $1 billion. HSBC’s third-quarter profit jumps 32%, in line with estimates
• Positive Sentiment: The bank declared a third interim dividend of $0.10 per share, representing a $1.71 billion payout and reinforcing its capital-return plans. HSBC declares USD 1.71bn third interim dividend
• Neutral Sentiment: HSBC’s earnings presentation highlighted its simplification and cost-cutting strategy, while the bank continues to refine client segmentation and consider combining Hang Seng’s investment arm with HSBC’s asset-management business. These actions could improve efficiency but offer limited immediate earnings relief. HSBC Holdings plc 2026 Q3 Results Earnings Call Presentation
• Negative Sentiment: Revenue of approximately $18.6 billion came in below the $18.98 billion consensus estimate, while reported EPS of $2.10 missed expectations of $2.20. The revenue shortfall outweighed the 32% profit increase for investors. HSBC quarterly earnings report
• Negative Sentiment: Customers are moving cash into higher-rate products, increasing HSBC’s funding costs and threatening net-interest margins. Slower wealth-management growth also added to concerns about future revenue momentum. Customers are chasing higher-rate products
• Negative Sentiment: Investors are also weighing the possibility of higher UK bank taxes, while broader weakness in European banking stocks amplified the negative reaction. Higher bank tax expected in budget

Analyst Ratings Changes

Several research firms have recently issued reports on HSBC. Royal Bank Of Canada reissued a “sector perform” rating on shares of HSBC in a research report on Monday, August 17th. JPMorgan Chase & Co. reiterated a “neutral” rating on shares of HSBC in a research report on Thursday, August 6th. The Goldman Sachs Group reiterated a “buy” rating on shares of HSBC in a report on Wednesday, August 5th. Keefe, Bruyette & Woods lowered shares of HSBC from a “moderate buy” rating to a “hold” rating in a report on Sunday, September 13th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of HSBC in a research report on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $97.00.

About HSBC

HSBC Holdings plc is a global banking and financial services company headquartered in London. Its principal subsidiary, The Hongkong and Shanghai Banking Corporation, was established in 1865 to facilitate trade between Europe and Asia. HSBC’s shares trade on the New York Stock Exchange in the form of American depositary receipts under the symbol HSBC.

The company provides personal and wealth banking, commercial banking, corporate and institutional banking, investment banking, global markets, and asset management services.