Profit before tax increased by $2.3 billion or 32 per cent to $9.6 billion compared with the same time last year, HSBC said in a statement. However, the result was less than the expected $9.69 billion. The increase partly reflected growth in revenue, mainly from banking net interest income and lower expected credit losses and other credit impairment charges.

Shares fell by 6 per cent after revenue undershot estimates and growth as its wealth business slowed. Dual-listed in London and Hong Kong, HSBC earns the bulk of its revenues in Asia.

Revenue during the quarter reached $18.6 billion, below the forecasts. Revenue for HSBC’s wealth division was flat at $2.7 billion, compared with 15 per cent and 23 per cent year on year revenue growth in the first two quarters.

HSBC, like its peers, faces a rising cost burden and as reported here, has embraced AI as a way to cut some of its expenses in areas including wealth management. (Rival Barclays has also moved to cut thousands of jobs. That bank did not specify if wealth management positions will be affected.) 

“Our performance shows that in a more complex world clients continue to turn to us to navigate uncertainty and seize new opportunities. It also reflects consistent execution of our strategic priorities with pace, precision and discipline,” Georges Elhedery, group CEO, said. “As we simplify HSBC, we are creating greater capacity to invest, grow and deliver strong returns for our shareholders.”

HSBC also announced a new $1 billion US stock buyback initiative, which it plans to complete before its 2026 results

Looking ahead, HSBC kept its previous forecast that calls for banking net interest income of $46 billion this year and a return on tangible equity of 17 per cent. The bank also expects revenue to grow annually through 2028, targeting 5 per cent that year compared with 2027.