Lenders in Europe and Latin America Report Results as a Fed Governor Leans Toward a Hike

HSBC plans a buyback of up to $1 billion, while Credicorp reaffirmed its annual profitability outlook.

Rhea-AI Summary

Credicorp (NYSE: BAP) reported third-quarter net income of S/1,929.4 million as European and Latin American lenders released quarterly results. Income rose 11.0% year over year but fell 2.6% quarter over quarter; return on equity was 19.9%. Credicorp reaffirmed 2026 return-on-equity guidance of about 19.5%.

HSBC (HSBC) reported pretax profit of $9.6 billion, up 32%. Santander (SAN) reported third-quarter underlying profit of €3.8 billion, up 19%. ING (ING) reported net income of €1,850 million, up 3.5% year over year, and announced a distribution of up to €1.9 billion. Itaú Unibanco (ITUB) reported a recurring managerial result of BRL 12.6 billion and recurring return on equity of 23.6%.

October U.S. consumer prices rose 0.4%, versus 0.6% in September. Federal Reserve Governor Christopher Waller leaned toward a 25-basis-point December rate increase, while saying a 50-basis-point increase should be considered if core inflation warranted it.

22 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointCredicorp net income reached S/1,929.4 million, up 11.0% yearly but down 2.6% quarterly; return on equity was 19.9%.
• Moderate pointCredicorp loans grew 14.8% year over year.
• Moderate pointCredicorp nonperforming-loan ratio improved 91 basis points to 3.9%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Credicorp reaffirmed about 19.5% return-on-equity guidance for 2026 and its medium-term expectation of about 22%.
• Moderate pointHSBC pretax profit increased 32% to $9.6 billion versus third-quarter 2025.
• Moderate pointHSBC annualised return on average tangible equity rose to 17.7% from 12.3% in third-quarter 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.HSBC intends a buyback of up to $1 billion, expected to finish by its 2026 full-year results announcement. 3.4% of market cap
• Moderate pointSantander underlying profit increased 16% to €11.2 billion in the first nine months of 2026.
• Moderate pointSantander third-quarter underlying profit reached €3.8 billion, up 19%.
• Moderate pointSantander loans and customer funds each increased 16% in constant euros, including TSB and Webster.
• Moderate pointSantander completed its Webster acquisition on Aug. 20, adding 4.2 million customers.
• Moderate pointING third-quarter net result rose 3.5% year over year to €1,850 million; tangible-equity return was 16.3%.
• Moderate pointING fee income increased 9.3% year over year to €1,273 million.
• Moderate pointING net core lending growth reached €11.0 billion.
• Moderate pointING net core deposit growth reached €12.1 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.ING announced a maximum €1.65 billion share buyback programme.
• Moderate pointItaú reported a BRL 12.6 billion third-quarter recurring managerial result, with recurring return on equity of 23.6%.

5 minor points

• Minor pointCredicorp innovation portfolio contributed 10.7% of risk-adjusted revenues, exceeding its year-end target.
• Minor point. Forward-looking: it has not happened yet and may not happen.ING announced a €0.25 billion cash payment to shareholders.
• Minor pointItaú mortgage lending grew 4.4% in the quarter.
• Minor pointItaú payroll loans grew 3.5% in the quarter.
• Minor pointItaú small and medium-sized enterprise lending grew 4.2% in the quarter.

Negative

• Minor pointCredicorp's 2.0% cost of risk included additional El Niño provisions reflecting its updated quarter-end assessment.

News Explained

ING's announced distribution of up to €1.9 billion consists of a buyback capped at €1.65 billion and a €0.25 billion cash payment; a November 10 SEC update reports 3,805,000 shares repurchased under the program to date.

Key Figures

Net income: S/1,929.4 million; +11.0% YoY and -2.6% QoQ Return on equity: 19.9% Loan growth: +14.8% year over year +2 more

Net income

S/1,929.4 million; +11.0% YoY and -2.6% QoQ

Credicorp third quarter 2026

Return on equity

19.9%

Credicorp third quarter 2026

Loan growth

+14.8% year over year

Credicorp third quarter 2026

NPL ratio

3.9%, improved by 91 basis points

Credicorp third quarter 2026

Innovation portfolio contribution

10.7% of risk-adjusted revenues

Credicorp; exceeded its year-end target

Key Terms

basis points, core cpi, npl ratio, cet1 ratio

4 terms

basis points financial

"increase in our policy rate of 25 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

core cpi technical

"core CPI inflation "around 0.3 percent or even higher,""

Core CPI is the Consumer Price Index measure that omits food and energy prices from the overall CPI to show underlying inflation trends; the official core CPI used in U.S. reporting is the CPI for All Urban Consumers (CPI‑U) with the food and energy components removed. It is calculated by the statistical agency that publishes CPI by aggregating price changes for the remaining categories of goods and services using the same weights and methods as headline CPI. Excluding food and energy reduces short‑term volatility from those often‑volatile categories, but it also means core CPI can miss inflationary pressures that affect everyday budgets when food or energy costs move sharply.

npl ratio financial

"The NPL ratio improved by 91 basis points to 3.9%."

The NPL ratio measures the share of a lender’s loans that are not being repaid on schedule — loans that are overdue or in default — expressed as a percentage of total loans. Investors use it like counting rotten apples in a fruit basket: a higher percentage signals greater credit stress and potential losses, which can hurt a bank’s profits, capital strength and future lending ability.

cet1 ratio financial

"its CET1 ratio was 13.3% at the end of the third quarter"

CET1 ratio measures a bank's core equity capital (the most loss-absorbing funds like common stock and retained earnings) relative to the size of its risk-adjusted assets. It shows how big the bank's financial cushion is compared with what it has on its books; a higher ratio means greater ability to absorb losses, lower regulatory risk, and generally more investor confidence in the bank's stability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Nov. 11, 2026 /PRNewswire/ -- Fly On Wall Street News Commentary - The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in October after rising 0.6 percent in September, the U.S. Bureau of Labor Statistics reported on Tuesday, and the index for all items less food and energy rose 0.3 percent in October, as it did in September and August. In a speech in London the same day, Federal Reserve Governor Christopher J. Waller said that even if the monthly rate of inflation improves in October, he is "leaning toward supporting an increase in our policy rate of 25 basis points" at the December meeting of the Federal Open Market Committee (FOMC), while Goldman Sachs Asset Management said in its November Market Pulse that it expects the FOMC to raise rates in December. Meanwhile, lenders outside the United States have been reporting third-quarter results. Active Companies from around the markets with current developments this week include: HSBC Holdings plc (NYSE: HSBC), Banco Santander, S.A. (NYSE: SAN), ING Groep N.V. (NYSE: ING), Credicorp Ltd. (NYSE: BAP), and Itaú Unibanco Holding S.A. (NYSE: ITUB).

The Goldman Sachs Asset Management note, dated Nov. 5 and written by Candice Tse, Global Head of Strategic Advisory Solutions, with John Tousley and Jennifer Guenther, said: "The FOMC has telegraphed a pace for potential rate hikes of every other meeting. We expect them to raise rates in December, but the move in March will be highly dependent on the data." The authors added, "We expect the ECB to deliver one more hike in December to a peak policy rate of 2.75%."

The note also looked abroad: "We believe Europe's strength reflects the lack of concentration in tech and the broader beneficiaries of higher rates, infrastructure spend, and energy prices, plus higher dividend yields that may help smooth volatility."

Governor Waller, speaking at the Bank of England Watchers Conference, said "inflation is too high, well above the FOMC's 2 percent goal." He said that if the October CPI data, released later that day, were similar to the past two monthly readings, with core CPI inflation "around 0.3 percent or even higher," then "a stronger policy move may be needed," and in that case he believes "a 50 basis point hike in the policy rate should be considered at the December meeting."

Recent bank news pairs a rate outlook with a run of quarterly reports. Readers who want to follow both kinds of news can pick up Knowledge is Power, a free 27-page, 10-chapter guide from our sister site Stock Preachers that covers reading the news and reading the chart in plain English, along with The Roadmap every Monday, Wednesday and Friday, at flyonwallstreet.com/sp.

HSBC Holdings plc (NYSE: HSBC)

HSBC reported third-quarter results on Oct. 27. Profit before tax increased by $2.3 billion, or 32%, to $9.6 billion compared with the third quarter of 2025, primarily due to a net favourable impact from notable items of $1.4 billion, which reflected the non-recurrence of legal provisions a year earlier. The annualised return on average tangible equity was 17.7%, compared with 12.3% in the third quarter of 2025.

HSBC said it intends to initiate a share buy-back of up to $1 billion, which it expects to complete by its 2026 full-year results announcement. On Nov. 9, HSBC announced a briefing that day on its UK business for investors and analysts, hosted by David Lindberg, CEO of HSBC UK Bank plc.

Georges Elhedery, Group CEO, said: "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."

Banco Santander, S.A. (NYSE: SAN)

Banco Santander reported on Oct. 28 that underlying profit increased 16% to €11.2 billion in the first nine months of 2026, and underlying profit in the third quarter reached €3.8 billion, up 19%. Loans and customer funds both increased 16% in constant euros, driven by higher customer activity and the incorporation of TSB and Webster; excluding these acquisitions, loans increased by 6% and customer funds by 8%.

Santander completed the acquisition of Webster on Aug. 20, expanding its customer base by 4.2 million customers, and the bank's 2026 interim cash dividend of 12.70 euro cents per share was set to be paid on Nov. 2.

Ana Botín, Banco Santander executive chair, said: "At a time of heightened volatility, our combination of at-scale global businesses and diversification across Europe and the Americas is a distinctive source of strength."

ING Groep N.V. (NYSE: ING)

ING reported on Oct. 29 a third-quarter net result of €1,850 million, up 3.5% year-on-year, with a return on tangible equity of 16.3%. Fee income was €1,273 million, up 9.3% year-on-year, with net core lending growth of €11.0 billion and net core deposit growth of €12.1 billion.

ING also announced a shareholder distribution of up to €1.9 billion, consisting of a share buyback programme for a maximum total amount of €1.65 billion and a cash payment of €0.25 billion, and said its CET1 ratio was 13.3% at the end of the third quarter of 2026. In an update filed with the SEC on Nov. 10, ING said the total number of shares repurchased under the programme to date was 3,805,000.

"ING has had a strong third quarter of 2026 as we continue to execute on our strategy and deliver solid commercial and financial performance," said Steven van Rijswijk, CEO of ING.

Credicorp Ltd. (NYSE: BAP)

Credicorp, a financial services holding company in Peru, reported third-quarter results on Nov. 9. Net income attributable to Credicorp reached S/1,929.4 million, up 11.0% year over year and down 2.6% quarter over quarter, resulting in a return on equity of 19.9%. Loans were up 14.8% year over year, and the NPL ratio improved by 91 basis points to 3.9%.

The company reaffirmed its 2026 ROE guidance of about 19.5% and its medium-term expectation of about 22%, and said its cost of risk of 2.0% included additional El Niño provisions reflecting its updated quarter-end El Niño assessment. A Strategic Update is scheduled for Nov. 17.

Gianfranco Ferrari, CEO, said: "Credicorp delivered another strong quarter, reflecting solid performance across our businesses and a broader earnings base. Our innovation portfolio contributed 10.7% of risk-adjusted revenues, already exceeding our year-end target."

Itaú Unibanco Holding S.A. (NYSE: ITUB)

Itaú Unibanco reported on Nov. 3 a recurring managerial result of BRL 12.6 billion for the third quarter, with a recurring ROE of 23.6%. The total loan portfolio reached BRL 1.5 trillion, and the bank said the increase in the loan portfolio in the quarter was mainly driven by growth in mortgage (+4.4%), payroll loans (+3.5%) and the SMEs portfolio (+4.2%).

The consolidated NPL ratio for loans overdue by more than 90 days ended the quarter at 2.0%. Itaú revised its 2026 guidance for the effective income and social contribution tax rate to between 28.0% and 29.0%, and said guidance for all other lines remained unchanged.

Milton Maluhy Filho, CEO of Itaú Unibanco, said: "The consistency of our results reflects a long-term strategy underpinned by disciplined management, responsible credit origination and the quality of our portfolio."

Five lenders across Europe and South America have now reported third-quarter results, with the FOMC's December meeting still ahead. To learn how to read both the news and the chart, get the free Knowledge is Power guide from Stock Preachers at flyonwallstreet.com/sp.

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FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Credicorp's third-quarter results and 2026 profitability guidance?

Credicorp reported net income attributable to the company of S/1,929.4 million, up 11.0% year over year and down 2.6% quarter over quarter. Return on equity was 19.9%. The company reaffirmed 2026 return-on-equity guidance of about 19.5% and its medium-term expectation of about 22%.

How much did Santander lending and customer funds grow excluding acquisitions?

Excluding acquisitions, Santander loans increased by 6% and customer funds by 8%. Including the incorporation of TSB and Webster, loans and customer funds both increased 16% in constant euros.

What was ING's capital ratio and buyback progress?

ING's common equity Tier 1 capital ratio was 13.3% at the end of the third quarter of 2026, and it had repurchased 3,805,000 shares under its programme to date in its Nov. 10 update. The ratio measures core equity capital relative to risk-weighted assets.

What changed in Itaú Unibanco's 2026 guidance?

Itaú revised its 2026 effective income and social contribution tax-rate guidance to 28.0%–29.0%; guidance for all other lines remained unchanged. Its total loan portfolio reached BRL 1.5 trillion, and the consolidated nonperforming-loan ratio for loans overdue by more than 90 days ended the quarter at 2.0%.

Why did HSBC's third-quarter pretax profit increase?

HSBC's pretax profit increase primarily reflected a $1.4 billion net favourable impact from notable items, reflecting the non-recurrence of legal provisions a year earlier. Pretax profit increased by $2.3 billion, or 32%, to $9.6 billion compared with the third quarter of 2025.