HSBC Q3 2026 pretax profit rises 32% to $9.6B
HSBC maintained 2026 banking net interest income guidance of at least $46bn and expects Basel 3.1 to benefit its CET1 ratio by approximately 40–50bps at January 1, 2027.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
6-K
HSBC Holdings plc reported 3Q26 profit before tax of $9.6bn, up 32%, and revenue of $18.6bn, up 5%, versus 3Q25. Profit after tax rose 38% to $7.6bn. The quarterly profit increase mainly reflected the non-recurrence of $1.4bn in 3Q25 legal provisions, alongside revenue growth and lower expected credit losses. For 9M26, profit before tax rose 26% to $29.2bn and revenue grew 9% to $56.4bn; the profit comparison included a $3.7bn net favourable notable-item movement. Nine-month expected credit losses increased 8% to $3.2bn.
The Board approved a third interim dividend of $0.10 per ordinary share. HSBC completed a $1bn share buy-back on September 28, 2026, and intends another of up to $1bn, expected to finish by its 2026 full-year results announcement. It maintained 2026 banking NII guidance of at least $46bn and RoTE targets of 17% or better in 2026, 2027 and 2028, excluding notable items. The Singapore insurance-business sale remains subject to regulatory approval and is expected to generate an estimated $1.8bn pre-tax gain, net of migration costs.
CET1 was 13.9% at September 30, 2026. HSBC expects Basel 3.1 to benefit CET1 by approximately 40–50bps at January 1, 2027, based on current modelling and subject to model, data, portfolio and supervisory factors.
2 points · 0 major0 major · 1 point
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.
Positive
- Moderate point9M26 revenue rose 9% to $56.4bn; notable items added $0.9bn net.
- Moderate point9M26 profit before tax reached $29.2bn, up 26%; notable items added $3.7bn net.
Negative
- Moderate point9M26 expected credit losses rose 8% to $3.2bn.
Filing Explained
HSBC’s Australian loan sale is agreed but still subject to regulatory approval; its remaining retail business is slated for an 18-month wind-down.
This Form 6-K furnishes material information published by a foreign private issuer in its home market; HSBC’s release reports that the privatisation of Hang Seng Bank was completed on
HSBC expects the Hang Seng privatisation to generate
Separately, HSBC Australia has agreed to sell its home and personal loan portfolio; the sale has competition approval but still requires regulatory approval and is expected to close in the first half of 2027. The remainder of its retail business is to be wound down over 18 months, after which its CIB, Asset Management and Private Banking businesses are to be consolidated into HSBC’s Sydney branch.
For its simplification programme, HSBC reports that it had actioned approximately
Key Figures
Revenue: $56.4bn
Profit before tax: $29.2bn
Profit after tax: $22.9bn
+5 more
8 metrics
Revenue
$56.4bn
9M26; up 9% compared with 9M25.
Profit before tax
$29.2bn
9M26; up 26% compared with 9M25, including a $3.7bn net favourable movement in notable items.
Profit after tax
$22.9bn
9M26; up 28% compared with 9M25.
Expected credit losses
$3.2bn
9M26; 8% higher than 9M25.
Banking net interest income outlook
At least $46bn
2026 expectation.
CET1 capital ratio
13.9%
At September 30, 2026; down 0.2 percentage points from June 30, 2026.
Third interim dividend
$0.10 per ordinary share
For 2026; approved by the Board.
Intended share buy-back
Up to $1bn
HSBC expects completion by its 2026 full-year results announcement.
Key Terms
notable items, banking net interest income, expected credit losses, Common equity tier 1, +1 more
5 terms
notable items financial
"a $3.7bn net favourable notable-item movement"
banking net interest income financial
"banking net interest income of at least $46bn"
expected credit losses financial
"expected credit losses and other credit impairment charges"
Expected credit losses are an accounting estimate of how much a lender or company expects to lose when borrowers or customers don’t fully pay what they owe, combining how likely nonpayment is with how big the loss would be. Investors care because these estimates determine how much a firm must set aside from earnings as a reserve, directly affecting reported profits, balance-sheet strength and perceptions of credit risk—like setting aside a rainy-day fund for unpaid bills.
Common equity tier 1 financial
"Common equity tier 1 (‘CET1’) capital ratio of 13.9%"
Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.
risk-weighted assets financial
"an increase in risk-weighted assets"
Risk-weighted assets are a bank’s assets (like loans and investments) adjusted by how risky regulators consider each one, so safer items count less and riskier items count more. Think of it as packing a suitcase where heavy, fragile items take up more “real” space; higher risk-weighted assets mean a bank must hold more capital as a cushion. Investors watch this because it affects a bank’s safety, regulatory limits and ability to lend or return money to shareholders.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were HSBC's 3Q26 profit and revenue?
HSBC reported 3Q26 profit before tax of $9.6bn, up 32%, and revenue of $18.6bn, up 5%, compared with 3Q25. Profit after tax was $7.6bn, up 38%. The profit-before-tax increase mainly reflected the non-recurrence of $1.4bn in 3Q25 legal provisions, along with revenue growth and lower expected credit losses.
How did HSBC's 9M26 results compare with 9M25?
Profit before tax was $29.2bn, up 26%, and revenue was $56.4bn, up 9%. Profit after tax rose 28% to $22.9bn. Expected credit losses increased 8% to $3.2bn. A $3.7bn net favourable movement in notable items contributed to the profit-before-tax comparison.
What gain is expected from HSBC's Singapore insurance-business sale?
The sale is expected to generate an estimated $1.8bn pre-tax gain, net of migration costs. The transaction remains subject to regulatory approval and is expected to complete in the first half of 2027.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of October
HSBC Holdings plc
8
Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or
Form 40-F).
Form
20-F X Form 40-F
HSBC Holdings plc Earnings Release 3Q26
27
October 2026
|
|
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. As we simplify HSBC, we are
creating greater capacity to invest, grow and deliver strong
returns for our shareholders.”
|
|
Financial performance in 3Q26
-
Profit before tax increased by $2.3bn or 32% to
$9.6bn compared with 3Q25, primarily due to a net favourable
impact from notable items of $1.4bn, which reflected the
non-recurrence of legal provisions in 3Q25 of $1.4bn. The increase
also reflected growth in revenue, mainly from banking net interest
income (‘banking NII’) and lower expected credit losses
and other credit impairment charges (‘ECL’).
Profit after tax increased by
$2.1bn or 38% to $7.6bn compared with 3Q25.
-
Constant
currency profit before tax excluding notable items increased by
$0.9bn to $10.0bn compared with 3Q25.
-
Annualised return on average tangible equity
(‘RoTE‘) in 3Q26 was 17.7% compared with
12.3% in 3Q25. Excluding
notable items, annualised RoTE in 3Q26 was 18.2%, a rise of 1.6
percentage points compared with 3Q25.
-
Revenue increased by $0.8bn to $18.6bn compared
with 3Q25, primarily reflecting growth in banking NII. Fee
and other income also increased in our Corporate and Institutional
Banking (‘CIB’) business in Wholesale Transaction
Banking (‘WTB’) and in Debt and Equity Markets,
supported by higher customer activity, and in Investment
Distribution and Private Bank in Wealth. This was partly offset by
valuation losses in Corporate Centre and the non-recurrence of
one-off favourable impacts in 3Q25 in Insurance. Constant currency revenue excluding notable
items rose by $0.8bn to $18.7bn.
-
Net interest income (‘NII’) of
$9.3bn increased by $0.5bn or 6% compared with 3Q25. The
increase reflected deposit balance growth and the benefit of
reinvestment of our structural hedge at higher yields, partly
offset by lower NII from Markets Treasury and an adverse impact of
$0.1bn from one-off items in 3Q26. Banking NII increased by $0.6bn to
$11.7bn. Banking NII excludes insurance NII, which fell by
$0.1bn, and the funding costs associated with the trading book,
which remained broadly stable.
-
Net
interest margin (‘NIM’) of 1.57% was stable compared
with 3Q25.
-
ECL of $0.8bn decreased by $0.2bn or 17%
compared with 3Q25, primarily reflecting a $0.1bn reduction
in stage 3 charges related to the Hong Kong commercial real estate
(‘CRE’) sector, as well as lower charges in our UK
business and International Wealth and Premier Banking
(‘IWPB’) business in Mexico.
-
Operating expenses of $8.8bn were $1.3bn or 12%
lower compared with 3Q25. This included a favourable net
impact of $1.4bn from notable items, which reflected the
non-recurrence of legal provisions in 3Q25. Excluding notable
items, the increase in operating expenses primarily reflected the
impact of inflation, higher planned spend and investment in
technology, and the phasing of the performance-related pay accrual
relative to 3Q25, partly mitigated by the cost reduction benefits
from our organisational simplification. Target basis operating expenses were $0.1bn or
1.4% higher than in 3Q25, including the impact of inflation and higher
planned spend and investment in technology, partly offset by the
cost reduction benefits from our organisational
simplification.
-
Customer lending balances increased by $7.8bn
compared with 2Q26 on a reported basis. On a constant
currency basis, lending balances increased by $6.7bn. This
primarily reflected growth as we supported our customers to
participate in the India Foreign Currency Non-Resident Deposit
scheme, together with growth in our UK and Hong Kong businesses.
This was partly offset by the classification to held for sale of
lending balances associated with the exit of our retail banking
business in Australia in our IWPB business.
-
Customer accounts increased by $9.1bn compared
with 2Q26 on a reported basis. On a constant currency basis,
customer accounts increased by $6.5bn, reflecting continued
momentum in deposit inflows in our Hong Kong business. In our IWPB
business, deposit growth was mainly in India, as we facilitated
customer participation in the India Foreign Currency Non-Resident
Deposit scheme. This growth was partly offset by retail deposit
outflows following our announced exit of our retail banking
business in Australia. In CIB, lower deposit balances reflected
outflows of short-term balances.
-
Common equity tier 1 (‘CET1’)
capital ratio of 13.9% decreased by 0.2 percentage points compared
with 30 June 2026, reflecting an increase in
risk-weighted assets (‘RWAs‘), together with a decrease
in the fair value of hold-to-collect-and-sell debt instruments due
to higher yields and the impact of the share buy-back announced at
our interim results, partly offset by regulatory profits net of
dividends.
-
The Board has
approved a third interim dividend
of $0.10 per share. On 28 September 2026, we completed the
$1bn share buy-back announced at our interim results. We also
intend to initiate a share buy-back
of up to $1bn, which we expect to complete by our 2026
full-year results announcement.
|
|
Financial performance in 9M26
-
Profit before tax increased by $6.0bn or 26% to
$29.2bn compared with 9M25. The increase primarily reflected
a net favourable impact of $3.7bn from notable items. The increase
also reflected revenue growth from an increase in banking NII and
higher fee and other income, primarily in Wealth and WTB.
Profit after tax of $22.9bn was
$4.9bn or 28% higher compared with 9M25.
-
The net favourable
movement in notable items primarily reflected the non-recurrence of
9M25 dilution and impairment losses of $2.1bn related to our
associate Bank of Communications Co., Limited (‘BoCom’)
and legal provisions of $1.4bn, together with lower restructuring
costs associated with our organisational simplification of $0.3bn.
These items were partly offset by disposal losses recognised on the
classification to held for sale associated with the planned sale of
our business in Malta of $0.3bn in 9M26.
-
Constant
currency profit before tax excluding notable items increased by
$2.0bn to $30.4bn compared with 9M25.
-
Annualised RoTE in 9M26 was 18.0%.
Excluding notable items, annualised RoTE in 9M26 was 18.8%, a rise of 1.1
percentage points compared with 9M25.
-
Revenue increased by $4.5bn or 9% to $56.4bn
compared with 9M25, including a net favourable impact from
notable items of $0.9bn and a favourable impact from foreign
currency translation differences of $0.7bn. The remaining increase
reflected higher banking NII, and fee and other income growth in
Wealth across our IWPB and Hong Kong businesses, supported by
higher customer activity, and in WTB, mainly in our CIB business.
Constant currency revenue excluding
notable items rose by $2.8bn to $56.8bn compared with
9M25.
-
NII increased by $1.9bn compared with
9M25, primarily driven by deposit balance growth, the
benefit of reinvestment of our structural hedge at higher yields,
and the favourable impact of foreign currency translation
differences of $0.4bn. This was partly offset by lower NII from
Markets Treasury. Banking NII
increased by $2.2bn to $34.6bn, as the deduction for
insurance NII reduced by $0.2bn, due to the impact of strategic
transactions. The funding costs associated with the
trading book, which are also excluded from banking NII, rose by
$0.1bn.
-
NIM of 1.60% was 3 basis points
(‘bps‘) higher compared with 9M25, mainly due to
the impact from foreign currency translation differences and the
benefit of our structural hedge, partly offset by lower market
interest rates.
ECL of $3.2bn were $0.2bn higher than in
9M25. The 9M26 charge primarily reflected stage 3 charges on
wholesale exposures, including a $0.5bn fraud-related, secondary,
securitisation exposure with a financial sponsor in the UK in our
CIB business. The 9M26 charge also included $0.3bn related to the
Hong Kong CRE sector and allowances to reflect uncertainty due to
the ongoing conflict in the Middle East. ECL in 9M25 included
charges of $0.7bn related to the Hong Kong CRE sector and a charge
against a Middle Eastern exposure.
-
Operating expenses of $26.2bn were $0.9bn or 3%
lower than in 9M25, including a favourable net impact of $1.8bn
from notable items, which comprised the non-recurrence of legal
provisions in 9M25 of $1.4bn and lower restructuring and other
related costs associated with our organisational simplification of
$0.3bn. Excluding notable items, the increase in expenses primarily
reflected an adverse impact of $0.4bn from foreign currency
translation differences, higher planned spend and investment in
technology and Wealth, and the impact of inflation, partly
mitigated by cost reductions from our organisational
simplification. Target basis
operating expenses were $0.5bn or 2.0% higher than in 9M25,
including higher planned spend and investment in technology and the
impact of inflation, partly offset by cost reductions from our
organisational simplification.
-
|
|
Outlook
Group
financial targets
-
We remain confident
in achieving the targets we set out in February 2026, including a
RoTE of 17% or better for 2026,
2027 and 2028, excluding notable items.
-
We continue to
target year-on-year growth in
revenue from 2026 to 2028, rising to 5% growth in 2028 compared
with 2027, excluding notable items and on a constant
currency basis.
-
We maintain our
dividend payout ratio target basis
of 50% for 2026, 2027 and 2028. Our target basis payout
ratio is calculated as a percentage of earnings per share,
excluding material notable items and related impacts.
In
respect of 2026
-
We continue to
expect banking NII of at least
$46bn in 2026.
-
We continue to
expect an ECL charge as a
percentage of average gross customer loans of around 45bps
(including held for sale loan balances) for 2026. Over the medium
term, we retain our planning range of 30–40bps.
-
The Group remains on track to deliver
year-on-year growth in operating expenses of approximately 1% in
2026 on a target basis. As communicated at our 2026 interim
results, should strong business performance continue, we may
consider additional performance-related pay, which would increase
2026 target basis cost growth modestly. Our target basis operating
expenses measure excludes notable items and includes the impact of
simplification-related saves associated with our announced
strategic reorganisation.
Capital
and regulatory developments
-
We continue to
assess the anticipated impact of the final Basel 3.1 standards on
our capital. We expect, based on
our latest modelling, that the impact on the Group CET1 capital
ratio at 1 January 2027 will be a benefit of approximately
40–50bps. The final impact will depend on a number of
factors, including model and data refinements, portfolio size and
composition and supervisory permissions granted. Any related
reductions to firm-specific capital requirements are not expected
to be significant.
-
We intend to
continue to manage our CET1 capital
ratio within our medium-term target operating range of 14% to
14.5%.
Ñ Our
targets and expectations reflect our current outlook for the global
macroeconomic environment and market-dependent factors, such as
market-implied interest rates (as of mid-October 2026) and rates of
foreign exchange, as well as customer behaviour and activity
levels.
Ñ We do not reconcile our forward guidance on RoTE
excluding notable items, target basis operating expenses, dividend
payout ratio target basis or banking NII to their equivalent
reported measures.
Ñ See page 5
for a further explanation of RoTE
excluding notable items, constant currency revenue excluding
notable items, banking NII, target basis operating expenses and
dividend payout ratio target basis. For further information on our
CET1 ratio, see page 52.
|
|
Presentation to investors and analysts
HSBC
Holdings plc will be conducting a trading update conference call
with analysts and investors today to coincide with the publication
of this Earnings Release. The call will take place at 07:45am GMT.
Details of how to participate in the call and the live audio
webcast can be found at www.hsbc.com/investors.
|
|
About HSBC
HSBC
Holdings plc, the parent company of HSBC, is headquartered in
London. With assets of $3.4tn at 30 September 2026, HSBC is
one of the world’s largest banking and financial services
organisations.
The
Group‘s operating segments comprise of four businesses along
with Corporate Centre:
-
Hong
Kong
-
UK
-
Corporate and
Institutional Banking
-
International
Wealth and Premier Banking
Our
Hong Kong business comprises Retail Banking and Wealth and
Commercial Banking of HSBC Hong Kong and Hang Seng Bank Limited
(‘Hang Seng Bank‘). Our UK business comprises UK Retail
Banking and Wealth (including first direct and M&S Bank) and UK
Commercial Banking, including HSBC Innovation Bank. CIB integrates
our Commercial Banking business (outside of the UK and Hong Kong)
with our Global Banking and Markets business. IWPB comprises
Premier banking outside of Hong Kong and the UK, our Private Bank,
Asset Management and Insurance businesses. Corporate Centre results
primarily comprise the financial impact from certain acquisitions
and disposals and the share of profit, dilution and impairment loss
impacts from interests in our associates and joint ventures. It
also includes Central Treasury, stewardship costs and consolidation
adjustments.
|
|
Notes
Income
statement comparisons, unless stated otherwise, are between the
quarter ended 30 September 2026 and the quarter ended
30 September 2025. Balance sheet comparisons, unless
otherwise stated, are between balances at 30 September 2026 and the
corresponding balances at 31 December 2025. Unless otherwise
stated, the factors impacting constant currency income statement
performance between periods are the same factors discussed in
relation to reported income statement performance for the same
periods. Constant currency performance is computed by adjusting
reported results for the effects of foreign currency translation
differences.
Ñ
See page
5
for an explanation of constant currency performance.
The
financial information on which this Earnings Release 3Q26
is based is unaudited. Other than the adoption of certain
amendments to IFRS 9 ‘Financial Instruments‘ effective
from 1 January 2026, which have had no material impact on the
Group, it has been prepared in accordance with our material
accounting policies as described on pages 274 to 285 of the
Annual Report and Accounts 2025.
|
|
Reshaping the Group for growth
Privatisation
of Hang Seng Bank
On 26
January 2026, we completed our privatisation of Hang Seng Bank,
following shareholder and Court approval. Hang Seng Bank is now a
wholly-owned subsidiary of the HSBC Group and Hang Seng Bank shares
have been withdrawn from the Hong Kong Stock Exchange. Through the
privatisation of Hang Seng Bank, we expect to realise $0.5bn in
annualised pre-tax revenue and cost synergies across both our
brands in Hong Kong by the end of 2028. We expect to incur
associated restructuring costs of $0.6bn, of which one-off income
statement impacts would be reported as material notable items. We
also have an ambition to generate further annualised revenue and
cost opportunities of around $0.4bn by the end of 2028 across both
our brands in Hong Kong.
Organisational
simplification
At our
2024 full-year results we announced measures to simplify the Group,
committing to deliver an annualised reduction of around $1.5bn in
our cost base by the end of 2026, spending $1.8bn in restructuring
and other related costs. At our 1H26 interim results, having
already exceeded our savings commitment of $1.5bn, we revised our
simplification savings commitment with an intention to action
around $2bn of annualised savings by the end of 2026, spending up
to our originally expected $1.8bn of restructuring costs. The
additional saves we have brought into the programme generate
capacity that will be used to support the growth of our four
businesses.
Since
the start of 2025, we have identified and actioned annualised cost
savings of approximately $1.9bn, spending associated restructuring
and other related costs of $1.6bn. These actions have resulted in a
reduction of around $0.6bn in operating expenses in the income
statement in 2025, and a $0.8bn reduction in 9M26.
Strategic
transactions
We
remain focused on opportunities where we have a clear competitive
advantage and accretive returns, and we aim to redeploy
approximately $1.8bn of additional costs saved from non-strategic
activities into these areas over the medium term. This includes the
additional $0.3bn of costs saved from the synergies generated from
our privatisation of Hang Seng Bank.
During
the third quarter of 2026, we completed the sale of our operations
in Uruguay. In addition, we announced the sale of HSBC Life
Singapore. In Australia, we announced the sale of our portfolio of
home and personal loans, the planned wind-down of the remaining
retail business and the transfer of our CIB, Private Banking and
Asset Management businesses to the Sydney branch of The Hongkong
and Shanghai Banking Corporation Limited, simplifying our entity
footprint. In Egypt, we announced the sale of our retail banking
business. The completion of announced disposals and related actions
remains subject to relevant regulatory and other approvals. We have
commenced a strategic review of our retail business and
domestic-focused small and mid-sized corporate banking operations
in Türkiye. Our international wholesale client business in
Türkiye is unaffected by this review.
Ñ
For further details
on business disposals, see page 13.
Progress
in growth areas
Wealth
balances increased by 3% to $1.6tn at 30 September 2026 compared
with 31 December 2025. We attracted net new money
(‘NNM‘) in 9M26 of $105bn, with $95bn booked in Asia,
partly offset by the impact of classifications to held for sale and
portfolio exits.
Transaction
banking continues to perform well as we leverage our network and
capabilities to capture opportunities from changing trade and
capital flows. In 9M26, fee and other income in WTB rose by 8%
compared with 9M25, or by 6% on a constant currency basis,
reflecting increases in Global Foreign Exchange, Securities
Services, Global Trade Solutions (‘GTS‘) and Global
Payment Solutions (‘GPS‘).
Financial summary
|
|
Key financial metrics
|
|
Nine months ended
|
Quarter ended
|
|
||||||||||||||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|||||||||||
|
Reported results
|
|
|
|
|
|
|
|
|
|||||||||
|
Profit before tax ($m)
|
29,154
|
23,105
|
9,632
|
10,146
|
7,295
|
|
|||||||||||
|
Profit after tax ($m)
|
22,892
|
17,944
|
7,571
|
7,927
|
5,503
|
|
|||||||||||
|
Net operating income before change in expected credit losses and
other credit impairment charges (‘revenue’)
($m)
|
56,362
|
51,910
|
18,620
|
19,118
|
17,788
|
|
|||||||||||
|
Cost efficiency ratio (%)
|
46.6
|
52.2
|
47.4
|
45.5
|
56.6
|
|
|||||||||||
|
Net interest margin (%)
|
1.60
|
1.57
|
1.57
|
1.62
|
1.57
|
|
|||||||||||
|
Basic earnings per share ($)
|
1.27
|
0.93
|
0.41
|
0.45
|
0.28
|
|
|||||||||||
|
Diluted earnings per share ($)
|
1.26
|
0.93
|
0.41
|
0.45
|
0.28
|
|
|||||||||||
|
Dividend per ordinary share (in respect of the period)
($)
|
0.30
|
0.30
|
0.10
|
0.10
|
0.10
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Alternative performance measures
|
|
|
|
|
|
|
|
|
|||||||||
|
Constant currency profit before tax ($m)
|
29,154
|
23,303
|
9,632
|
10,146
|
7,302
|
|
|||||||||||
|
Constant currency revenue ($m)
|
56,362
|
52,569
|
18,620
|
19,098
|
17,758
|
|
|||||||||||
|
Constant currency banking net interest income ($m)
|
34,552
|
32,871
|
11,656
|
11,633
|
11,050
|
|
|||||||||||
|
Constant currency cost efficiency ratio (%)
|
46.6
|
52.3
|
47.4
|
45.5
|
56.6
|
|
|||||||||||
|
Constant currency profit before tax excluding notable items
($m)
|
30,416
|
28,372
|
10,021
|
10,339
|
9,106
|
|
|||||||||||
|
Constant currency revenue excluding notable items ($m)
|
56,848
|
54,018
|
18,680
|
19,024
|
17,871
|
|
|||||||||||
|
Constant currency profit before tax excluding notable items and
strategic transactions ($m)
|
30,416
|
28,066
|
10,021
|
10,323
|
8,974
|
|
|||||||||||
|
Constant currency revenue excluding notable items and strategic
transactions ($m)
|
56,848
|
53,460
|
18,680
|
19,005
|
17,654
|
|
|||||||||||
|
Expected credit losses and other credit impairment charges
(annualised) as a % of average gross loans and advances to
customers, including held for sale (%)
|
0.41
|
0.41
|
0.31
|
0.41
|
0.41
|
|
|||||||||||
|
Basic earnings per share excluding material notable items and
related impacts ($)
|
1.30
|
1.14
|
0.42
|
0.45
|
0.36
|
|
|||||||||||
|
Return on average ordinary shareholders’ equity (annualised)
(%)
|
16.6
|
12.9
|
16.2
|
17.7
|
11.3
|
|
|||||||||||
|
Return on average tangible equity (annualised) (%)
|
18.0
|
13.9
|
17.7
|
19.1
|
12.3
|
|
|||||||||||
|
Return on average tangible equity excluding notable items
(annualised) (%)
|
18.8
|
17.7
|
18.2
|
19.5
|
16.6
|
|
|||||||||||
|
Target basis operating expenses ($m)
|
25,472
|
24,980
|
8,493
|
8,426
|
8,373
|
|
|||||||||||
|
|
At
|
|||||||||||||||
|
|
30 Sep 2026
|
30 Jun 2026
|
31 Dec 2025
|
|||||||||||||
|
Balance sheet
|
|
|
|
|||||||||||||
|
Total assets ($m)
|
3,444,821
|
3,438,161
|
3,233,034
|
|||||||||||||
|
Net loans and advances to customers ($m)
|
1,029,858
|
1,022,105
|
988,399
|
|||||||||||||
|
Constant
currency net loans and advances to customers ($m)
|
1,029,858
|
1,023,176
|
982,862
|
|||||||||||||
|
Customer accounts ($m)
|
1,836,801
|
1,827,703
|
1,786,828
|
|||||||||||||
|
Constant
currency customer accounts ($m)
|
1,836,801
|
1,830,309
|
1,773,911
|
|||||||||||||
|
Average interest-earning assets, year to date ($m)
|
2,307,033
|
2,280,838
|
2,190,078
|
|||||||||||||
|
Loans and advances to customers as % of customer accounts
(%)
|
56.1
|
55.9
|
55.3
|
|||||||||||||
|
Total shareholders’ equity ($m)
|
195,875
|
196,682
|
198,225
|
|||||||||||||
|
Tangible ordinary shareholders’ equity ($m)
|
160,994
|
160,652
|
165,153
|
|||||||||||||
|
Net asset value per ordinary share at period end ($)
|
10.14
|
10.08
|
10.36
|
|||||||||||||
|
Tangible net asset value per ordinary share at period end
($)
|
9.41
|
9.36
|
9.64
|
|||||||||||||
|
Capital, leverage and liquidity
|
|
|
|
|||||||||||||
|
Common
equity tier 1 capital ratio (%)1,2
|
13.9
|
14.1
|
14.9
|
|||||||||||||
|
Risk-weighted
assets ($m)1,2
|
922,394
|
906,417
|
888,647
|
|||||||||||||
|
Total
capital ratio (%)1,2
|
19.2
|
19.7
|
20.5
|
|||||||||||||
|
Leverage
ratio (%)1,2
|
4.9
|
4.9
|
5.3
|
|||||||||||||
|
High-quality
liquid assets (liquidity value) ($m)2,3
|
719,376
|
713,669
|
702,123
|
|||||||||||||
|
Liquidity
coverage ratio (%)2,3
|
132
|
134
|
137
|
|||||||||||||
|
Share count
|
|
|
|
|||||||||||||
|
Period
end basic number of $0.50 ordinary shares outstanding, after
deducting own shares held (millions)
|
17,111
|
17,164
|
17,140
|
|||||||||||||
|
Period
end basic number of $0.50 ordinary shares outstanding and dilutive
potential ordinary shares, after deducting own shares held
(millions)
|
17,220
|
17,267
|
17,276
|
|||||||||||||
|
Average
basic number of $0.50 ordinary shares outstanding, after deducting
own shares held (millions)
|
17,146
|
17,146
|
17,427
|
|||||||||||||
Ñ
For reconciliations
of our reported results to a constant currency basis, including
lists of notable items, see page 25. Definitions
and calculations of other alternative performance measures are
included in ‘Alternative performance measures’ on page
37.
1
Regulatory ratios and requirements are based on the Prudential
rules in force at the time.
2
Regulatory numbers and ratios are as presented at the date of
reporting. Small changes may exist between these numbers and ratios
and those subsequently submitted in regulatory filings. Where
differences are significant, we may restate in subsequent
periods.
3 The
liquidity coverage ratio (‘LCR‘) is based on the
average value of the preceding 12 months.
Basis of presentation
Constant
currency performance
Constant
currency performance is computed by adjusting reported results for
the effects of foreign currency translation differences, which
reflect the movements of the US dollar against most major
currencies during 2026. Excluding these differences allows us to
assess balance sheet and income statement performance on a
like-for-like basis and to better understand the underlying trends
in the business. Foreign currency translation differences at 30
September 2026 are computed by retranslating into US dollars for
non-US dollar branches, subsidiaries, joint ventures and
associates:
-
the income
statements for 9M25 at the average rate of exchange for
9M26;
-
the income
statements for the quarterly periods at the average rate of
exchange for 3Q26;
-
the closing prior
period balance sheets at the prevailing rates of exchange on 30
September 2026.
No
adjustment has been made to the exchange rates used to translate
foreign currency-denominated assets and liabilities into the
functional currencies of any HSBC branches, subsidiaries, joint
ventures or associates. The constant currency data of our
operations in Türkiye has not been adjusted further for the
impacts of hyperinflation. When reference is made to foreign
currency translation differences in tables or commentaries,
comparative data reported in the functional currencies of
HSBC’s operations has been translated at the appropriate
exchange rates applied in the current period on the basis described
above.
Notable
items and material notable items
We
separately disclose ‘notable items’, which are
components of our income statement that management would consider
as outside the normal course of business and generally
non-recurring in nature.
Certain
notable items are classified as ‘material notable
items’, which are a subset of notable items. Categorisation
as a material notable item is dependent on the nature of each item
in conjunction with the financial impact on the Group‘s
income statement, and such items are excluded from our target basis
dividend payout ratio calculation and earnings per share measure.
Material notable items in 9M26 or relevant comparative periods
relate to the operating expenses associated with actions to exit or
wind down non-strategic businesses. They also include a dilution
loss and the recognition of an impairment of our investment in
BoCom in 9M25, and a legal provision relating to developments in a
claim in Luxembourg relating to the Bernard L. Madoff Investment
Securities LLC fraud in 9M25.
Ñ
The tables on pages
25
to 29 and pages
32
to 36 detail the
effects of notable items on each of our business segments and legal
entities.
Impact
of strategic transactions
In
addition to the items categorised as material notable items, the
impacts of strategic transactions include the distorting impact
observed between the periods of the operating income statement
results related to acquisitions, disposals and wind-downs that
affect period-on-period comparisons. Once a transaction has
completed or a wind-down has commenced, the impact will include the
operating income statement results of each business, which are not
classified as notable items, in any comparative period if there are
no results in the current period as a result of a transaction, or a
reduction in revenue or costs has arisen from the wind-down of a
business. We consider the monthly impact of distorting income
statement results when calculating the impact of strategic
transactions. In the case of wind-downs, or transactions that
complete in phased tranches, there may be timing differences
between the recognition of operating cost impacts and operating
revenue impacts. These would arise in the event that there is a
timing lag between the impact of cost actions and the resultant
impact on operating revenue.
Ñ
See page
30
for further details on the impact of strategic
transactions.
Management
view of revenue on a constant currency basis
We
provide breakdowns of revenue for each of our business segments on
a constant currency basis by major product. These reflect the basis
on which revenue performance of the businesses is assessed and
managed. In the management view of revenue, notable items are
presented separately.
We
group certain products in a consistent manner across our business
segments. WTB comprises our Global Foreign Exchange, GPS, GTS and
Securities Services businesses. Wealth comprises our Investment
Distribution, Insurance, Private Bank and Asset Management
businesses.
On page
7
we provide a summarised management view of revenue for the
Group‘s results, on reported foreign exchange rates, to
supplement the Group‘s reported revenue performance using the
product grouping which is used to manage and assess our segmental
performance.
Impact
of hyperinflationary accounting
We
continue to treat Türkiye as a hyperinflationary economy for
accounting purposes. The impact of applying International
Accounting Standard (‘IAS’) 29 ‘Financial
Reporting in Hyperinflationary Economies’ and the
hyperinflation provisions of IAS 21 ’The Effects of Changes
in Foreign Exchange Rates’ in the current period on our
operations in Türkiye was a decrease in the Group’s
profit before tax of $146m for 9M26 and a decrease of $40m for 3Q26
(9M25: $119m decrease; 2Q26: $44m decrease; 3Q25: $40m decrease).
The consumer price index at 30 September 2026 for Türkiye
was 137.23 (30 June 2026: 129.99; 30 September 2025:
105.78).
|
|
Use of alternative performance measures
Our
reported results are prepared in accordance with International
Financial Reporting Standards as issued by the International
Accounting Standards Board (‘IFRS Accounting
Standards‘), as detailed in our financial statements
starting on page 262 of the Annual Report and Accounts
2025.
To
measure our performance, we supplement our IFRS Accounting
Standards figures with non-IFRS Accounting Standards measures,
which constitute alternative performance measures under European
Securities and Markets Authority guidance and non-GAAP financial
measures defined in and presented in accordance with the US
Securities and Exchange Commission rules and regulations. These
measures include those derived from our reported results that
eliminate factors distorting period-on-period comparisons. The
‘constant currency performance’ measure used throughout
this report is described on page 5. Definitions
and calculations of other alternative performance measures are
included in ‘Alternative performance measures’ on page
37.
All alternative performance measures are reconciled to the closest
reported performance measure.
Return
on average tangible equity excluding notable items
The
calculation for RoTE excluding notable items adjusts the
‘profit attributable to the ordinary shareholders, excluding
goodwill and other intangible assets impairment‘ for the
post-tax impact of notable items. To better align with market
practice, from our 2025 full-year results, we no longer adjust the
‘average tangible equity‘ for the post-tax impact of
notable items in each period. Comparatives have been
re-presented.
Ñ
See page
37
for the definition of return on average tangible equity excluding
notable items and page 38 for the
reconciliation to the GAAP measure.
Banking
net interest income
Banking
net interest income (‘banking NII‘) adjusts our NII
primarily for the impact of funding trading and fair value
activities reported in interest expense. It represents the
Group’s banking revenue that is directly impacted by changes
in interest rates. We use this measure to determine the deployment
of our surplus funding and to help optimise our structural hedging
and risk management actions.
Ñ
For more information on banking NII, including the
reconciliation to the GAAP measure, see page 11.
Constant
currency revenue and profit before tax excluding notable items and
the impact of strategic transactions
To aid
the understanding of our results, we separately report
‘constant currency revenue excluding notable items‘ and
‘constant currency profit before tax excluding notable
items‘, which exclude the impact of notable items and the
impact of foreign exchange translation. We also separately disclose
‘constant currency revenue excluding notable items and the
impact of strategic transactions‘ and ‘constant
currency profit before tax excluding notable items and the impact
of strategic transactions‘, which also exclude the impact of
strategic transactions classified as material notable items. We
consider these measures to provide useful information to investors
as they remove items that distort period-on-period
comparisons.
The
impact of strategic transactions also includes the distorting
impact between the periods of the operating income statement
results related to acquisitions and disposals and that affect
period-on-period comparisons. These impacts are not included in our
notable or material notable items. The impact of strategic
transactions is computed by including the operating income
statement results of each business in any period for which there
are no results in the comparative period.
Ñ
See page
38
for the reconciliation to the GAAP measure.
Target
basis operating expenses
Target
basis operating expenses include the impact of
simplification-related saves associated with our announced
strategic reorganisation, is measured on a constant currency basis
and excludes notable items and the impact of retranslating the
prior year results of hyperinflationary economies at constant
currency, which we consider to be outside of our control. We
consider target basis operating expenses to provide useful
information to investors by quantifying and excluding the notable
items that management considered when setting and assessing
cost-related targets.
Ñ
See page
40
for the reconciliation to the GAAP measure.
Basic
earnings per share excluding material notable items and related
impacts
We have
established a dividend payout ratio target basis of 50% for 2026.
For the purposes of computing our dividend payout ratio target
basis, we exclude from earnings per share material notable items
and related impacts.
Related
impacts include those items that do not qualify for designation as
notable items but whose adjustment is considered by management to
be appropriate for the purposes of determining the basis for our
dividend payout ratio target basis calculation, which we exclude
from earnings per share material notable items and related
impacts.
Ñ
See page
30 for the supplementary
analysis of the impact of strategic transactions.
Ñ
See page
37
for the definition of ‘basic earnings per share excluding
material notable items and related impacts‘ and page
40
for the reconciliation to the GAAP measure.
Income statement results
Summary
consolidated income statement
|
|
Nine
months ended
|
Quarter
ended
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Net
interest income
|
27,540
|
25,598
|
9,307
|
9,288
|
8,777
|
|
Net fee income
|
10,844
|
10,149
|
3,567
|
3,558
|
3,506
|
|
Net
income from financial instruments held for trading or managed on a
fair value basis1
|
15,459
|
15,061
|
4,939
|
5,070
|
4,513
|
|
Net
income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
3,178
|
9,556
|
(2,927)
|
6,469
|
4,443
|
|
Insurance
finance income/(expense)
|
(2,270)
|
(9,541)
|
3,568
|
(6,239)
|
(4,212)
|
|
Insurance service result
|
1,572
|
1,386
|
539
|
542
|
601
|
|
(Losses)/gains
recognised on sale of business operations2
|
(506)
|
(181
|
(73)
|
72
|
(147)
|
|
Other
operating (expense)/income3
|
545
|
(118)
|
(300)
|
358
|
307
|
|
Net operating income before change in expected credit losses and
other credit impairment charges4
|
56,362
|
51,910
|
18,620
|
19,118
|
17,788
|
|
Change in expected credit losses and other credit impairment
charges
|
(3,185)
|
(2,949)
|
(832)
|
(1,052)
|
(1,008)
|
|
Net operating income
|
53,177
|
48,961
|
17,788
|
18,066
|
16,780
|
|
Total
operating expenses excluding amortisation and impairment of
intangible assets
|
(23,946)
|
(24,871)
|
(7,954)
|
(7,995)
|
(9,120)
|
|
Amortisation
and impairment of intangible assets
|
(2,302)
|
(2,227
|
(868)
|
(710)
|
(956)
|
|
Operating profit
|
26,929
|
21,863
|
8,966
|
9,361
|
6,704
|
|
Share of profit in associates and joint ventures
|
2,225
|
2,242
|
666
|
785
|
591
|
|
Impairment
of interest in associate3
|
—
|
(1,000)
|
—
|
—
|
—
|
|
Profit before tax
|
29,154
|
23,105
|
9,632
|
10,146
|
7,295
|
|
Tax expense
|
(6,262)
|
(5,161)
|
(2,061)
|
(2,219)
|
(1,792)
|
|
Profit after tax
|
22,892
|
17,944
|
7,571
|
7,927
|
5,503
|
|
Attributable to:
|
|
|
|
|
|
|
– ordinary shareholders of the parent company
|
21,716
|
16,383
|
7,090
|
7,688
|
4,873
|
|
– other equity holders
|
1,095
|
958
|
462
|
226
|
411
|
|
– non-controlling interests
|
81
|
603
|
19
|
13
|
219
|
|
Profit after tax
|
22,892
|
17,944
|
7,571
|
7,927
|
5,503
|
|
|
$
|
$
|
$
|
$
|
$
|
|
Basic earnings per share
|
1.27
|
0.93
|
0.41
|
0.45
|
0.28
|
|
Diluted earnings per share
|
1.26
|
0.93
|
0.41
|
0.45
|
0.28
|
|
Dividend
per ordinary share (paid in the period)
|
0.65
|
0.56
|
0.10
|
0.55
|
0.10
|
|
|
%
|
%
|
%
|
%
|
%
|
|
Return on average ordinary shareholders’ equity
(annualised)
|
16.6
|
12.9
|
16.2
|
17.7
|
11.3
|
|
Return on average tangible equity (annualised)
|
18.0
|
13.9
|
17.7
|
19.1
|
12.3
|
|
Cost efficiency ratio
|
46.6
|
52.2
|
47.4
|
45.5
|
56.6
|
1
Amounts in 9M25 include a $0.1bn mark-to-market gain on interest
rate hedging of the portfolio of retained loans post sale of our
retail banking operations in France and a $0.1bn fair value loss on
Grupo Financiero Galicia‘s (‘Galicia‘) American
Depositary Receipts (‘ADRs‘) received as purchase
consideration from the sale of our business in Argentina, which
were disposed of in 2Q25.
2
Amounts in 9M26 include $0.2bn from the recycling of foreign
currency translation reserve losses arising on completion of the
sale of our UK life insurance business, HSBC Life (UK) Limited,
$0.3bn of disposal losses recognised upon the classification as
‘held for sale’ of HSBC Continental Europe’s
shareholding in HSBC Bank Malta plc, and disposal losses relating
to HSBC Australia’s portfolios of home and personal loans and
credit cards, which together with related restructuring costs and
write-downs reported in operating expenses, totalled $0.2bn in
3Q26.
3 The
amount in 9M25 ‘Other operating (expense)/income’
includes a loss of $1.1bn inclusive of reserves recycling as a
result of the dilution of our shareholding in BoCom. In the same
period we also recognised a $1.0bn impairment loss following an
impairment test on the carrying value of the Group’s
investment in BoCom in ‘Impairment of interest in
associate’.
4 Also
referred to as revenue.
3Q26
compared with 3Q25 – reported results
|
Movement in reported profit compared with 3Q25
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
18,620
|
17,788
|
832
|
5
|
(134)
|
|
–
of which: net interest income
|
9,307
|
8,777
|
530
|
6
|
(46)
|
|
ECL
|
(832)
|
(1,008)
|
176
|
17
|
—
|
|
Operating expenses
|
(8,822)
|
(10,076)
|
1,254
|
12
|
15
|
|
Share
of profit from associates and joint ventures
|
666
|
591
|
75
|
13
|
—
|
|
Profit before tax
|
9,632
|
7,295
|
2,337
|
32
|
(119)
|
|
Tax expense
|
(2,061)
|
(1,792)
|
(269)
|
(15)
|
|
|
Profit after tax
|
7,571
|
5,503
|
2,068
|
38
|
|
|
Revenue excluding notable items1
|
18,680
|
17,900
|
780
|
4
|
|
|
Profit before tax excluding notable items1
|
10,021
|
9,103
|
918
|
10
|
|
1 For a
reconciliation of reported revenue to revenue excluding notable
items and reported profit before tax to profit before tax excluding
notable items, see page 38.
|
Supplementary management view of reported revenue
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
11,656
|
11,049
|
607
|
5
|
(44)
|
|
Fee and other income
|
7,024
|
6,851
|
173
|
3
|
(174)
|
|
–
Wealth
|
2,688
|
2,680
|
8
|
—
|
(124)
|
|
–
Wholesale Transaction Banking
|
2,854
|
2,576
|
278
|
11
|
(16)
|
|
–
Other
|
1,482
|
1,595
|
(113)
|
(7)
|
(34)
|
|
Revenue excluding notable items2
|
18,680
|
17,900
|
780
|
4
|
(218)
|
|
Notable items
|
(60)
|
(112)
|
52
|
(46)
|
85
|
|
Revenue
|
18,620
|
17,788
|
832
|
5
|
(133)
|
1 For a
reconciliation of banking NII to reported NII, see page
11.
Banking NII in our supplementary management view of reported
revenue excludes notable items, which were nil in 3Q26 (3Q25:
nil).
2 For a
reconciliation of reported revenue to revenue excluding notable
items, see page 38.
|
Notable items
|
||
|
|
Quarter ended
|
|
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
|
Revenue
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(60)
|
(144)
|
|
Dilution loss of interest in BoCom associate
|
|
32
|
|
Currency
translation on revenue notable items
|
|
(1)
|
|
Operating expenses
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
(189)
|
(118)
|
|
Restructuring
and other related costs
|
(140)
|
(157)
|
|
Legal
provisions
|
|
(1,421)
|
|
Currency
translation on operating expenses notable items
|
|
5
|
3Q26
compared with 3Q25 – constant currency basis
|
Movement in profit before tax compared with 3Q25 – on a
constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
18,620
|
17,758
|
862
|
5
|
(132)
|
|
ECL
|
(832)
|
(1,016)
|
184
|
18
|
—
|
|
Operating expenses
|
(8,822)
|
(10,054)
|
1,232
|
12
|
13
|
|
Share
of profit from associates and joint ventures
|
666
|
614
|
52
|
8
|
—
|
|
Profit before tax
|
9,632
|
7,302
|
2,330
|
32
|
(119)
|
3Q26
compared with 3Q25 – performance
commentary
Reported profit before tax of $9.6bn was $2.3bn or 32%
higher than in 3Q25, primarily reflecting a net favourable impact
from notable items, primarily due to the non-recurrence of legal
provisions of $1.4bn in 3Q25. The increase also reflected growth in
revenue, mainly from banking NII, and lower ECL.
On a
constant currency basis, profit before tax was $2.3bn higher than
in 3Q25. On the same basis and excluding notable items, profit
before tax was $0.9bn higher than in 3Q25.
Reported revenue increased by $0.8bn or 5% to $18.6bn,
primarily reflecting growth in banking NII. Fee and other income
also rose in CIB in WTB across all products, supported by higher
customer activity, as well as in Debt and Equity Markets, mainly in
Prime Finance. Fee and other income also increased in Investment
Distribution and Private Bank in Wealth from increased client
activity, partly offset by valuation losses in Corporate Centre,
the non-recurrence of 3Q25 one-off favourable impacts and an
adverse impact from strategic transactions in
Insurance.
NII increased by $0.5bn compared with 3Q25. The increase
reflected deposit growth and the benefit of reinvestment of our
structural hedge at higher yields, partly offset by lower NII from
Markets Treasury and an adverse impact of $0.1bn from one-off items
in 3Q26. Banking NII increased by $0.6bn to $11.7bn. Banking NII
excludes insurance NII, which fell by $0.1bn, and the funding costs
associated with the trading book, which remained broadly stable.
Banking NII increased by $0.6bn on a constant currency
basis.
Reported ECL in 3Q26 of $0.8bn were $0.2bn lower compared
with 3Q25, primarily reflecting a $0.1bn reduction in stage 3
charges related to the Hong Kong CRE sector, as well as lower
charges in our UK business and in our IWPB business in
Mexico.
←
For further details
of the calculation of ECL, including the measurement uncertainties
and significant judgements applied to such calculations, the impact
of the economic scenarios and management judgemental adjustments,
see pages 45 to
50.
Reported operating expenses of $8.8bn were $1.3bn or 12%
lower than in 3Q25. This included a favourable net impact of $1.4bn
from notable items, which primarily reflected the non-recurrence of
legal provisions in 3Q25 of $1.4bn. Excluding notable items, the
increase in operating expenses primarily reflected the impact of
inflation, higher planned spend and investment in technology, and
the phasing of the performance-related pay accrual relative to
3Q25, partly mitigated by the cost reduction benefits from our
organisational simplification. Target basis operating expenses were $0.1bn or
1.4% higher than in 3Q25, primarily due to the impact of inflation and higher
planned spend and investment in technology, partly offset by the
cost reduction benefits from our organisational
simplification.
Reported share of profit from associates and joint ventures less impairment of
$0.7bn was $0.1bn or 13% higher compared with 3Q25, reflecting
increases from Saudi Awwal Bank (‘SAB‘) and
BoCom.
Tax expense in 3Q26 was a charge of $2.1bn, representing an
effective tax rate of 21.4%. Tax expense in 3Q25 was a charge of
$1.8bn, representing an effective tax rate of 24.6%. The effective
tax rate for 3Q25 was increased by 4.4% due to legal provisions on
which no tax benefit was recorded.
Dividend
On 27
October 2026, the Board announced a third interim dividend for 2026
of $0.10 per ordinary share. For further details, see page
54.
9M26
compared with 9M25 – reported results
|
Movement in reported profit compared with 9M25
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
56,362
|
51,910
|
4,452
|
9
|
(744)
|
|
–
of which: net interest income
|
27,540
|
25,598
|
1,942
|
8
|
(64)
|
|
ECL
|
(3,185)
|
(2,949)
|
(236)
|
(8)
|
2
|
|
Operating expenses
|
(26,248)
|
(27,098)
|
850
|
3
|
272
|
|
Share
of profit from associates and joint ventures
|
2,225
|
1,242
|
983
|
79
|
—
|
|
Profit before tax
|
29,154
|
23,105
|
6,049
|
26
|
(470)
|
|
Tax expense
|
(6,262)
|
(5,161)
|
(1,101)
|
(21)
|
|
|
Profit after tax
|
22,892
|
17,944
|
4,948
|
28
|
|
|
Revenue excluding notable items1
|
56,848
|
53,297
|
3,551
|
7
|
|
|
Profit before tax excluding notable items1
|
30,416
|
28,031
|
2,385
|
9
|
|
1 For a
reconciliation of reported revenue to revenue excluding notable
items and reported profit before tax to profit before tax excluding
notable items, see page 38.
|
Supplementary management view of reported revenue
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
34,552
|
32,362
|
2,190
|
7
|
(61)
|
|
Fee and other income
|
22,296
|
20,935
|
1,361
|
7
|
(480)
|
|
–
Wealth
|
8,150
|
7,243
|
907
|
13
|
(261)
|
|
–
Wholesale Transaction Banking
|
8,916
|
8,271
|
645
|
8
|
(14)
|
|
–
Other
|
5,230
|
5,421
|
(191)
|
(4)
|
(205)
|
|
Revenue excluding notable items2
|
56,848
|
53,297
|
3,551
|
7
|
(541)
|
|
Notable items
|
(486)
|
(1,387)
|
901
|
65
|
(203)
|
|
Revenue
|
56,362
|
51,910
|
4,452
|
9
|
(744)
|
1 For a
reconciliation of banking NII to reported NII, see page
11. Banking NII in our
supplementary management view of revenue excludes notable items,
which were nil in 9M26 (9M25: nil).
2 For a
reconciliation of reported revenue to revenue excluding notable
items, see page 38.
|
Notable items
|
||
|
|
Nine months ended
|
|
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
|
Revenue
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(486)
|
(283)
|
|
Dilution loss of interest in BoCom associate
|
—
|
(1,104)
|
|
Currency
translation on revenue notable items
|
—
|
(62)
|
|
Operating expenses
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(318)
|
(345)
|
|
Restructuring and other related costs
|
(458)
|
(773)
|
|
Legal provisions
|
—
|
(1,421)
|
|
Currency
translation on operating expenses notable items
|
—
|
(14)
|
|
Impairment of interest in associate
|
—
|
(1,000)
|
|
Currency translation on associate notable items
|
—
|
(67)
|
9M26
compared with 9M25 – constant currency basis
|
Movement in profit before tax compared with 9M25 – on a
constant currency basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
56,362
|
52,569
|
3,793
|
7
|
(760)
|
|
ECL
|
(3,185)
|
(3,031)
|
(154)
|
(5)
|
2
|
|
Operating expenses
|
(26,248)
|
(27,505)
|
1,257
|
5
|
281
|
|
Share
of profit from associates and joint ventures
|
2,225
|
1,270
|
955
|
75
|
—
|
|
Profit before tax
|
29,154
|
23,303
|
5,851
|
25
|
(477)
|
1 For
details, see ‘Strategic transactions supplementary
analysis‘ on page 30.
9M26
compared with 9M25 – performance commentary
Reported profit before tax of $29.2bn was $6.0bn higher than
in 9M25, primarily reflecting a $3.7bn net favourable impact from
notable items together with revenue growth from an increase in
banking NII and higher fee and other income, primarily in Wealth
and WTB.
The net
favourable movement in notable items primarily reflected the
non-recurrence of 9M25 dilution and impairment losses of $2.1bn
related to our associate BoCom and legal provisions of $1.4bn,
together with lower restructuring costs associated with our
organisational simplification of $0.3bn. These items were partly
offset by disposal losses recognised on the classification to held
for sale associated with the planned sale of our business in Malta
of $0.3bn in 9M26.
On a
constant currency basis, profit before tax of $29.2bn was $5.9bn
higher than in 9M25. On the same basis and excluding notable items,
profit before tax of $30.4bn was $2.0bn or 7% higher compared with
9M25.
Reported revenue of $56.4bn was $4.5bn or 9% higher than in
9M25 including a $0.9bn net favourable impact from notable items,
which primarily related to the non-recurrence of a dilution loss of
$1.1bn on BoCom recognised in 9M25, partly offset by higher net
losses from business disposals.
Revenue
excluding notable items increased by $3.6bn or 7%, reflecting
higher banking NII, and growth in fee and other income. The fee and
other income growth reflected a strong performance in Wealth,
driven by increases in Investment Distribution in both our IWPB and
Hong Kong businesses, and in Private Bank supported by higher
customer activity. In addition, there was growth in Insurance fee
and other income, driven primarily by a higher contractual service
margin (‘CSM’) release as a result of strong new
business growth in Hong Kong.
Fee and
other income also increased in our CIB business. This was mainly in
WTB, reflecting growth across all products, supported by higher
customer activity, and also in Debt and Equity Markets, partly
offset by a reduction in Investment Banking fee and other income
due to the wind-down of our Mergers and Acquisitions
(‘M&A’) and Equity Capital Markets
(‘ECM’) businesses in the UK, Europe and the
US.
In
Corporate Centre, fee and other income was lower, primarily driven
by valuation losses on financial instruments and structural foreign
exchange hedges, together with the non-recurrence of fair value
gains on non-qualifying hedges related to our retained French
portfolio of home and certain other loans. This was partly offset
by a one-off $0.2bn gain from a property asset disposal in
9M26.
NII increased by $1.9bn compared with 9M25, primarily driven
by deposit balance growth and the benefit of reinvestment of our
structural hedge at higher yields, and the favourable impact of
foreign currency translation differences of $0.4bn. This was partly
offset by lower NII from Markets Treasury. Banking NII increased by
$2.2bn to $34.6bn, as the deduction for insurance NII reduced by
$0.2bn due to the impact of strategic transactions. The funding
costs associated with generating trading and fair value income were
$7.2bn, an increase of $0.1bn compared with 9M25, as the impact of
higher trading balances was partly offset by lower market interest
rates.
Reported ECL charge of $3.2bn was $0.2bn or 8% higher than
in 9M25. The charge in 9M26 primarily reflected stage 3 charges on
wholesale exposures, including a $0.5bn fraud-related, secondary,
securitisation exposure with a financial sponsor in the UK in our
CIB business. The 9M26 charge also included $0.3bn related to the
Hong Kong CRE sector and allowances to reflect uncertainty due to
the ongoing conflict in the Middle East. ECL in 9M25 included
charges related to the Hong Kong CRE sector of $0.7bn, as well as
allowance increases relating to geopolitical tensions and higher
trade tariffs.
Reported operating expenses of $26.2bn were $0.9bn or 3%
lower than in 9M25, reflecting a favourable net impact of $1.8bn
from notable items, which comprised the non-recurrence of legal
provisions in 9M25 of $1.4bn and lower restructuring and other
related costs associated with our organisational simplification of
$0.3bn. Excluding notable items, the increase in expenses primarily
reflected an adverse impact of $0.4bn from foreign currency
translation differences, higher planned spend and investment in
technology and Wealth, the impact of inflation, the phasing of the
performance-related pay accrual relative to 9M25 and other cost
growth. These increases were partly mitigated by cost reductions
from our organisational simplification. Target basis operating expenses were $0.5bn or
2% higher than in 9M25 reflecting higher planned spend and
investment in technology, and the impacts of inflation, partly
offset by cost reductions from our organisational
simplification.
The
number of employees expressed in full-time equivalent staff at 30
September 2026 was 204,330, a decrease of 4,390 from 31 December
2025. The number of contractors at 30 September 2026 was 4,087, an
increase of 113 from 31 December 2025.
Reported share of profit from associates and joint ventures
of $2.2bn increased by $1.0bn, mainly due to the non-recurrence of
an impairment loss of $1.0bn recognised on BoCom in
9M25.
Tax expense in 9M26 was a charge of $6.3bn, representing an
effective tax rate of 21.5% (9M25: 22.3%). The effective tax rate
for 9M26 was increased by the non-deductible losses recorded on the
sales of HSBC Life (UK) Limited and our business in Uruguay, and
the planned sale of our business in Malta. Excluding these items,
the effective tax rate for 9M26 was 21.1%. Tax expense in 9M25 was
a charge of $5.2bn, representing an effective tax rate of 22.3%,
increased by the non-deductible impairment and dilution loss in
BoCom and legal provisions on which no tax benefit is recorded.
Excluding these items, the effective tax rate for 9M25 was
19.9%.
Net
interest income
|
|
Nine months ended
|
Quarter
ended
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Interest
income
|
73,932
|
73,369
|
25,870
|
24,404
|
24,361
|
|
Interest
expense
|
(46,392)
|
(47,771)
|
(16,563)
|
(15,116)
|
(15,584)
|
|
Net interest income
|
27,540
|
25,598
|
9,307
|
9,288
|
8,777
|
|
Average interest-earning assets
|
2,307,033
|
2,179,639
|
2,358,567
|
2,300,049
|
2,218,472
|
|
|
%
|
%
|
%
|
%
|
%
|
|
Gross
interest yield1
|
4.28
|
4.50
|
4.35
|
4.26
|
4.36
|
|
Less:
gross interest payable1
|
(2.82)
|
(3.17)
|
(2.91)
|
(2.80)
|
(3.01)
|
|
Net
interest spread2
|
1.46
|
1.33
|
1.44
|
1.46
|
1.35
|
|
Net
interest margin3
|
1.60
|
1.57
|
1.57
|
1.62
|
1.57
|
1 Gross
interest yield is the average annualised interest rate earned on
average interest-earning assets (‘AIEA’), net of
amortised premiums and loan fees. Gross interest payable is the
average annualised interest cost as a percentage of average
interest-bearing liabilities.
2 Net
interest spread is the difference between the average annualised
interest rate earned on AIEA, net of amortised premiums and loan
fees, and the average annualised interest rate payable on average
interest-bearing funds.
3 Net
interest margin is net interest income expressed as an annualised
percentage of AIEA.
NII in 3Q26 of $9.3bn was $0.5bn higher compared with 3Q25.
This mainly reflected deposit growth and the benefit of
reinvestment of our structural hedge at higher yields, partly
offset by lower NII from Markets Treasury and the impact of an
adverse $0.1bn in one-off items in 3Q26. NII in 3Q26 remained
stable compared with 2Q26, as the benefit of the reinvestment of
our structural hedge at higher yields and a higher day count were
partly offset by lower NII from Markets Treasury and the impact of
an adverse $0.1bn in one-off items.
NII in
9M26 of $27.5bn was 8% higher compared with 9M25. The increase was
primarily driven by deposit balance growth, the benefit of
reinvestment of our structural hedge at higher yields and the
favourable impact from foreign currency translation differences of
$0.4bn. This was partly offset by lower NII from Markets Treasury.
The funding costs associated with generating trading and fair value
income were $7.2bn, an increase of $0.1bn compared with 9M25 as the
impact of higher trading balances was partly offset by lower market
interest rates.
NIM for 3Q26 of 1.57% was stable compared with 3Q25. NIM was
down 5bps in 3Q26 compared with 2Q26, driven by AIEA increasing
faster than NII. NIM for 9M26 was up 3bps compared with 9M25,
primarily reflecting the benefit of our structural
hedge.
Interest income in 3Q26 of $25.9bn increased by $1.5bn or 6%
compared with 2Q26, and by $1.5bn or 6% compared with 3Q25,
primarily due to an increase in AIEA. On a constant currency basis,
interest income rose by $1.5bn compared with 2Q26, and by $1.5bn
compared with 3Q25.
Interest expense in 3Q26 of $16.6bn increased by $1.4bn or
10% compared with 2Q26, and by $1.0bn or 6% compared with 3Q25,
primarily due to an increase in average interest-bearing
liabilities. On a constant currency basis, interest expense rose by
$1.5bn compared with 2Q26, and by $1.0bn compared with
3Q25.
Banking net interest income
|
|
Nine months ended
|
Quarter
ended
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Net interest income
|
27,540
|
25,598
|
9,307
|
9,288
|
8,777
|
|
Banking book funding costs used to generate ‘net income from
financial instruments held for trading or managed on a fair value
basis’
|
7,150
|
7,094
|
2,395
|
2,399
|
2,384
|
|
Third-party net interest income from insurance
|
(138)
|
(330)
|
(46)
|
(44)
|
(112)
|
|
Banking net interest income
|
34,552
|
32,362
|
11,656
|
11,643
|
11,049
|
|
Currency translation
|
|
509
|
|
(10
|
1
|
|
Banking net interest income – on a constant currency
basis
|
34,552
|
32,871
|
11,656
|
11,633
|
11,050
|
|
Banking net interest income – on a reported
basis
|
34,552
|
32,362
|
11,656
|
11,643
|
11,049
|
|
–
of which:
|
|
|
|
|
|
|
The
Hongkong and Shanghai Banking Corporation Limited
|
16,991
|
15,966
|
5,812
|
5,748
|
5,351
|
|
HSBC
UK Bank plc
|
9,281
|
8,477
|
3,171
|
3,083
|
2,969
|
|
HSBC
Bank plc
|
4,073
|
3,780
|
1,270
|
1,427
|
1,351
|
Banking NII adjusts our NII primarily for the impact of
funding trading and fair value activities reported in interest
expense. It represents the Group’s banking revenue that is
directly impacted by changes in interest rates. It is defined as
Group net interest income after deducting:
-
the internal cost
to fund trading and fair value net assets for which associated
revenue is reported in ‘Net income from financial instruments
held for trading or managed on a fair value basis’, also
referred to as ‘trading and fair value income’. These
funding costs reflect proxy overnight or term interest rates as
applied by internal funds transfer pricing;
-
the funding cost of
foreign exchange swaps in Markets Treasury, where an offsetting
income or loss is recorded in trading and fair value income. These
instruments are used to manage foreign currency deployment and
funding in our entities; and
-
third-party net
interest income in our Insurance business.
In our
segmental disclosures, the funding costs of trading and fair value
net assets are predominantly recorded in CIB in ‘net income
from financial instruments held for trading or managed on a fair
value basis’. On consolidation, this funding is eliminated in
Corporate Centre, resulting in an increase in the funding cost
reported in net interest income with an equivalent offsetting
increase in ‘net income from financial instruments held for
trading or managed on a fair value basis’ in this segment. In
the consolidated Group results, the cost to fund these trading and
fair value net assets is reported in net interest
income.
Banking
NII was $34.6bn in 9M26, an increase of $2.2bn or 7% compared with
9M25, primarily driven by deposit balance growth, the benefit of
reinvestment of our structural hedge at higher yields and the
favourable impact of foreign currency translation differences of
$0.5bn.
This
was partly offset by lower NII from Markets Treasury. Insurance
NII, which is deducted from banking NII, reduced by $0.2bn, due to
the impact of strategic transactions. The funding costs associated
with generating trading and fair value income were $7.2bn, an
increase of $0.1bn compared with 9M25, as the impact of higher
trading balances was partly offset by lower market interest
rates.
The
internally allocated funding to generate trading and fair value
income was $272bn at 30 September 2026, a rise of approximately
$35bn since 30 September 2025. This related to trading, fair value
and associated net asset balances, predominantly in
CIB.
|
|
Balance sheet
Summary
consolidated balance sheet
|
|
At
|
||
|
|
30 Sep 2026
|
30 Jun 2026
|
31 Dec 2025
|
|
|
$m
|
$m
|
$m
|
|
Assets
|
|
|
|
|
Cash and balances at central banks
|
222,463
|
227,800
|
242,859
|
|
Trading assets
|
390,121
|
423,987
|
366,153
|
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
139,500
|
138,942
|
133,063
|
|
Derivatives
|
279,169
|
255,995
|
237,740
|
|
Loans and advances to banks
|
104,329
|
110,529
|
108,462
|
|
Loans and advances to customers
|
1,029,858
|
1,022,105
|
988,399
|
|
Reverse repurchase agreements – non-trading
|
296,446
|
311,871
|
298,392
|
|
Financial investments
|
615,134
|
604,759
|
567,211
|
|
Assets held for sale
|
45,476
|
22,732
|
11,115
|
|
Other assets
|
322,325
|
319,441
|
279,640
|
|
Total assets
|
3,444,821
|
3,438,161
|
3,233,034
|
|
Liabilities
|
|
|
|
|
Deposits by banks
|
94,559
|
91,401
|
97,952
|
|
Customer accounts
|
1,836,801
|
1,827,703
|
1,786,828
|
|
Repurchase agreements – non-trading
|
268,733
|
276,266
|
204,974
|
|
Trading liabilities
|
78,406
|
86,363
|
72,122
|
|
Financial liabilities designated at fair value
|
176,564
|
173,751
|
158,456
|
|
Derivatives
|
276,194
|
254,662
|
237,854
|
|
Debt securities in issue
|
103,933
|
105,027
|
99,675
|
|
Insurance contract liabilities
|
130,324
|
130,053
|
122,955
|
|
Liabilities of disposal groups held for sale
|
23,837
|
30,097
|
23,382
|
|
Other liabilities
|
259,195
|
265,757
|
223,170
|
|
Total liabilities
|
3,248,546
|
3,241,080
|
3,027,368
|
|
Equity
|
|
|
|
|
Total shareholders’ equity
|
195,875
|
196,682
|
198,225
|
|
Non-controlling interests
|
400
|
399
|
7,441
|
|
Total equity
|
196,275
|
197,081
|
205,666
|
|
Total liabilities and equity
|
3,444,821
|
3,438,161
|
3,233,034
|
|
Combined view of customer lending and customer
deposits
|
|||
|
|
At
|
||
|
|
30 Sep 2026
|
30 Jun 2026
|
31 Dec 2025
|
|
|
$m
|
$m
|
$m
|
|
Loans and advances to customers
|
1,029,858
|
1,022,105
|
988,399
|
|
Loans and advances to customers of disposal groups reported in
‘Assets held for sale’
|
29,026
|
5,321
|
2,190
|
|
–
Australia retail banking business
|
25,636
|
—
|
—
|
|
–
business in Malta
|
3,059
|
3,071
|
—
|
|
–
business in Uruguay
|
—
|
1,363
|
1,314
|
|
–
other1
|
331
|
887
|
876
|
|
Non-current
assets held for sale
|
—
|
507
|
1,303
|
|
Combined customer lending
|
1,058,884
|
1,027,933
|
991,892
|
|
Currency translation
|
—
|
1,071
|
(5,500
|
|
Combined customer lending at constant currency
|
1,058,884
|
1,029,004
|
986,392
|
|
Customer accounts
|
1,836,801
|
1,827,703
|
1,786,828
|
|
Customer
accounts reported in ‘Liabilities of disposal groups held for
sale’
|
11,128
|
18,034
|
16,173
|
|
–
Indonesia retail banking business
|
1,963
|
1,904
|
—
|
|
–
business in Malta
|
7,313
|
7,091
|
—
|
|
–
Germany custody business
|
1,852
|
7,510
|
12,316
|
|
–
business in South Africa
|
—
|
—
|
2,056
|
|
–
business in Uruguay
|
—
|
1,528
|
1,369
|
|
–
other2
|
—
|
1
|
432
|
|
Combined customer deposits
|
1,847,929
|
1,845,737
|
1,803,001
|
|
Currency translation
|
—
|
2,606
|
(12,900
|
|
Combined customer deposits at constant currency
|
1,847,929
|
1,848,343
|
1,790,101
|
1 Other
loans and advances to customers of disposal groups reported in
‘Assets held for sale‘ consist of our retail banking
business in Sri Lanka, Indonesia retail banking business, Singapore
insurance business, Germany custody business and business in South
Africa.
2 Other
customer accounts reported in ‘Liabilities of disposal groups
held for sale‘ mainly consist of our retail banking business
in Sri Lanka.
Balance
sheet commentary – 30 September 2026 compared with
30 June 2026
At 30
September 2026, our total assets of $3.4tn were stable on both a
reported and constant currency basis. Lending growth, net of the
classification to assets held for sale of loans from the exit of
our retail banking business in Australia, and growth in derivative
asset balances, were broadly offset by lower trading assets and
reverse repo balances.
Loans
and advances to customers as a percentage of customer accounts were
56.1%, compared with 55.9% at 30 June 2026.
Loans and advances to customers of $1.0tn were $7.8bn higher
on a reported basis. This included a favourable effect of foreign
currency translation differences of $1.1bn. On a constant currency
basis, customer lending balances increased by $6.7bn.
The
following movements are on a constant currency basis.
In our
UK business, customer lending rose by $7.2bn, primarily driven by
continued growth in commercial lending and mortgage
balances.
In our
Hong Kong business, customer lending increased by $6.7bn, which
included higher retail lending balances and the accounting
reclassification of certain Wealth-related lending
balances.
In our
CIB business, customer lending increased by $4.4bn, primarily
reflecting growth in Asia.
In our
IWPB business, customer lending decreased by $11.7bn, reflecting
the classification to held for sale of loans from the exit of our
retail banking business in Australia. This was partly offset by
lending growth as we supported our customers to participate in the
India Foreign Currency Non-Resident Deposit scheme.
Customer accounts of $1.8tn increased by $9.1bn on a
reported basis. This included the favourable effects of foreign
currency translation differences of $2.6bn. On a constant currency
basis, customer accounts increased by $6.5bn.
The
following movements are on a constant currency basis.
In our
Hong Kong business, customer accounts increased by $20.6bn
reflecting continued momentum in deposit inflows, mainly into term
deposits.
In
IWPB, customer accounts increased by $9.8bn reflecting deposit
growth in India as we facilitated customer participation in the
India Foreign Currency Non-Resident Deposit scheme. This growth was
partly offset by retail deposit outflows following our announced
exit of our retail banking business in Australia.
In CIB,
customer accounts decreased by $24.2bn, which included expected
outflows of balances placed by clients for a short-term duration in
both Securities Services and GPS.
In our
UK business, customer accounts were stable despite growing
competition for retail deposits.
Financial investments
As part
of our interest rate hedging strategy and liquidity management we
hold a portfolio of debt instruments, reported within financial
investments, which are classified as hold-to-collect-and-sell. As a
result, the change in value of these instruments is recognised
through ‘debt instruments at fair value through other
comprehensive income’ in equity. At 3Q26, we recognised a
pre-tax cumulative unrealised loss reserve through other
comprehensive income of $5.0bn related to these
hold-to-collect-and-sell positions, excluding investments held in
our Insurance business. This compared with an unrealised loss of
$2.4bn at 2Q26, and reflected a $2.6bn pre-tax loss in 3Q26,
inclusive of movements on related fair value hedges.
We also
hold a portfolio of financial investments measured at amortised
cost, which are classified as hold-to-collect. At 3Q26, the debt
instruments within this portfolio had a cumulative unrecognised
loss of $7.0bn, representing a $4.9bn deterioration during
3Q26.
Risk-weighted assets
RWAs of
$922.4bn increased by $16.0bn compared with 30 June 2026, primarily
due to asset size movements of $18.7bn, driven primarily by IWPB
due to increases in sovereign exposures arising from participation
in the Foreign Currency Non-Resident Deposit scheme in India,
lending in our CIB and UK businesses and financial commitments in
our Hong Kong business. A further increase of $5.9bn reflected the
impact of a redeveloped probability of default (‘PD‘)
model for large corporates mainly in CIB, partly offset by
reductions in our UK and Hong Kong businesses, as well as an
increase for the small and medium-sized enterprises PD model in our
UK business. Methodology and policy changes reduced RWAs by $6.0bn,
mainly driven by a significant risk transfer transaction executed
through the issuance of a credit-linked note (‘CLN‘) in
our UK business, and changes to the market risk capital multiplier
in CIB.
←
For further details
on RWAs, see page 53.
|
|
Business disposals
We
reported balances of $45.5bn in assets held for sale and $23.8bn in
liabilities held for sale at 30 September 2026, which were
predominantly business disposal groups that met the held for sale
criteria. This included a reclassification made in the third
quarter of 2026 of $25.6bn in assets and $1.2bn in liabilities in
respect of our retail banking business in Australia.
During
the nine months ended 30 September 2026, we recognised net pre-tax
losses of $0.8bn relating to business disposals, including $0.2bn
in disposals losses and related restructuring costs and write-downs
recognised in the third quarter of 2026 relating to our retail
banking business in Australia. Impacts in prior quarters of 2026
included a $0.3bn disposal loss on the classification of our
business in Malta as held for sale and a $0.2bn loss on the
recycling of foreign currency translation reserves on completion of
the sale of our UK life insurance business.
Australia
retail banking business
On 31
July 2026, HSBC Bank Australia Limited (‘HSBC
Australia’), an indirect wholly-owned subsidiary of HSBC
Holdings plc, entered into an agreement to sell its portfolio of
home and personal loans to Virgo BidCo Pty Ltd, an entity wholly
owned by funds managed by affiliates of Blackstone Inc. The
transaction has received competition approval, remains subject to
regulatory approval and is expected to complete in the first half
of 2027. The remainder of HSBC Australia’s retail business
will be wound down in a phased manner over 18 months. Following
this, HSBC Australia’s Corporate and Institutional Banking,
Asset Management and Private Banking businesses in Australia will
be consolidated into The Hongkong and Shanghai Banking Corporation
Limited Sydney Branch, simplifying HSBC’s entity footprint.
HSBC expects to incur $0.3 bn in associated restructuring costs.
Following the disposal and associated wind-down actions, we expect
then to recycle foreign currency translation reserve losses to the
income statement. These stood at $0.2bn at 30 September 2026.
During the third quarter of 2026, we recognised a $0.2bn loss
including an immaterial disposal loss and related restructuring
costs and write-offs.
On 21
August 2026, HSBC Australia entered into a binding agreement to
sell its credit card balances to Credit Corp Group Limited, on
which we recognised an immaterial loss on disposal during the third
quarter of 2026.
The
home and personal loan portfolio and credit card balances met the
criteria for classification as held for sale in the third quarter
of 2026, with aggregate assets of $25.6bn and liabilities of $1.2bn
classified as held for sale at 30 September 2026.
Other
transactions
On 9
October 2026, HSBC Continental Europe, a wholly-owned subsidiary of
HSBC Bank plc, completed the sale of its fund administration
business, Internationale Kapitalanlagegesellschaft mbH, to BlackFin
Capital Partners S.A.S. On completion, the associated financial
impacts were immaterial.
On 2
August 2026, HSBC Bank Egypt S.A.E., an indirect subsidiary of HSBC
Holdings plc, entered into a binding agreement to sell its retail
banking business to Emirates NBD Egypt (S.A.E), a direct subsidiary
of Emirates NBD Bank PJSC. The transaction remains subject to
regulatory approval and is expected to complete in the second half
of 2027. The disposal group did not meet the held for sale criteria
in the third quarter of 2026, given a completed migration was
anticipated to require more than 12 months from the reporting date.
The sale is expected to generate an estimated pre-tax gain of
$0.3bn, inclusive of related transaction and migration costs and
write-offs, that will be recognised largely upon
completion
.
On 24
July 2026, HSBC Insurance (Asia Pacific) Holdings Limited, an
indirect wholly-owned subsidiary of HSBC Holdings plc, entered into
an agreement to sell its Singapore insurance business, HSBC Life
(Singapore) Pte. Ltd, to Allianz Asia Holdings Pte. Ltd. The
disposal group met the held for sale criteria in the second quarter
of 2026, with balances remaining classified as held for sale at 30
September 2026 of $10.8bn in assets and $10.5bn in liabilities,
including insurance manufacturing contractual service margin of
$1.4bn. The transaction, which remains subject to regulatory
approval, is expected to generate an estimated pre-tax gain of
$1.8bn, net of migration costs. The estimated pre-tax profit on the
sale will be recognised through a combination of the consolidation
of HSBC Life (Singapore) Pte. Ltd’s results into the
Group’s financial statements (between the 31 December 2025
net asset reference date and until completion), and the remaining
gain on sale recognised at completion, expected in the first half
of 2027.
On 10
July 2026, HSBC Latin America Holdings (UK) Limited completed the
sale of HSBC Bank (Uruguay) S.A. to a subsidiary of BTG Pactual
Holding SA. On completion, we recycled immaterial foreign currency
translation and other reserves losses to the income
statement.
On 4
May 2026, PT Bank HSBC Indonesia, an indirect subsidiary of HSBC
Holdings plc, entered into a binding agreement to sell its retail
banking business to PT Bank OCBC NISP Tbk. The disposal group met
the held for sale criteria in the second quarter of 2026, with
balances remaining classified as held for sale at 30 September 2026
of $0.3bn in assets and $2.0bn in liabilities. The transaction,
which is subject to regulatory approval, is expected to complete in
the first half of 2027, at which point, subject to variable
consideration terms, an estimated pre-tax gain of up to $0.4bn will
be recognised.
On 30
April 2026, The Hongkong and Shanghai Banking Corporation Limited
completed the sale of its retail banking business in Sri Lanka to
Nations Trust Bank PLC. An immaterial pre-tax gain on disposal was
recognised following completion.
On 27
February 2026, HSBC Bank plc completed the transfer of its business
in South Africa to local lender FirstRand Bank Ltd. Upon subsequent
substantive wind-down of the entity, expected in the fourth quarter
of 2026, cumulative foreign currency translation reserves and other
reserves will recycle to the income statement. At 30 September
2026, foreign currency translation reserve and other reserve losses
stood at $0.1bn.
On 30
January 2026, HSBC Bank plc completed the sale of its UK life
insurance entity, HSBC Life (UK) Limited, to Chesnara plc. On
completion, we recognised a loss of $0.2bn following the recycling
of foreign currency translation reserves to the income
statement.
On 22
December 2025, in line with the put option agreement entered into
with CrediaBank S.A. in September 2025 and following the completion
of the employee information and consultation process in France,
HSBC Continental Europe signed a sale and purchase agreement for
the sale of its 70.03% majority stake in HSBC Bank Malta p.l.c. The
disposal group met the criteria for classification as held for sale
in the first quarter of 2026, at which point a pre-tax loss on
disposal of $0.3bn was recognised. As at 30 September 2026, $8.3bn
of assets and $8.2bn of liabilities remained classified as held for
sale. The transaction remains subject to regulatory approval and is
expected to complete in the first half of 2027.
On 27
June 2025, HSBC Continental Europe reached an agreement to sell its
custody business in Germany to BNP Paribas. The transaction is
being completed in a phased manner, with a number of phases
completed during 2026. While client consent and related operational
requirements may extend the timing for completion of all client
transfers, given the signing of a sale and purchase agreement, the
disposal group met the held for sale criteria in the second quarter
of 2025, with balances remaining classified as held for sale at 30
September 2026 of $0.1bn in assets and $1.9bn in liabilities. The
sale is expected to generate an estimated pre-tax gain on disposal
of $0.1bn, which will be recognised in line with completion of
client transfers.
|
|
Events after the balance sheet date
On 9
October 2026, HSBC Continental Europe, a wholly-owned subsidiary of
HSBC Bank plc, completed the sale of its fund administration
business, Internationale Kapitalanlagegesellschaft mbH, to BlackFin
Capital Partners S.A.S. On completion, the associated financial
impacts were immaterial.
Business
segments
Our
business segments – Hong Kong, UK, Corporate and
Institutional Banking and International Wealth and Premier Banking
– along with Corporate Centre – are our reportable
segments under IFRS 8 ‘Operating
Segments’.
The
Group Operating Committee is considered the Chief Operating
Decision Maker (‘CODM’) for the purposes of identifying
the Group’s reportable segments. Business segment results are
assessed by the CODM on the basis of constant currency performance.
We separately disclose ‘notable items’, as described on
page 5.
Our
operations are closely integrated and, accordingly, the
presentation of data includes internal allocations of certain items
of income and expense. These allocations include the costs of
certain support services and global infrastructures to the extent
that they can be meaningfully attributed to business segments.
While such allocations have been made on a systematic and
consistent basis, they necessarily involve a degree of
subjectivity. Costs that are not allocated to business segments are
included in Corporate Centre.
Where
relevant, income and expense amounts presented include the results
of inter-segment funding along with inter-company and
inter-business line transactions. All such transactions are
undertaken on arm‘s length terms. The intra-Group elimination
items for business segments are presented in Corporate
Centre.
As
required by IFRS 8, reconciliations of the constant currency
results to the Group’s reported results are presented on
page 25.
Supplementary reconciliations of constant currency to reported
results by business segment are presented on pages 28 to
30
for information purposes.
Effective
1 January 2026, we transferred certain clients, primarily in Hong
Kong and the UK, to the CIB segment to better meet their needs.
This transfer does not change the Group’s reportable
segments. Comparative periods have been re-presented accordingly.
The re-presentation has no impact on the Group’s consolidated
financial results or financial position.
|
|
Hong Kong – constant currency basis
9M26
compared with 9M25
|
Results – on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
12,228
|
11,539
|
689
|
6
|
—
|
|
ECL
|
(788)
|
(1,159)
|
371
|
32
|
—
|
|
Operating expenses
|
(3,737)
|
(3,498)
|
(239)
|
(7)
|
—
|
|
Share
of profit/(loss) from associates and joint ventures
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
7,703
|
6,882
|
821
|
12
|
—
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
|
Management view of revenue – on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
9,052
|
8,585
|
467
|
5
|
—
|
|
Fee and other income
|
3,176
|
2,954
|
222
|
8
|
—
|
|
– Retail Banking and Wealth
|
2,330
|
2,104
|
226
|
11
|
—
|
|
–
Retail Banking
|
297
|
259
|
38
|
15
|
—
|
|
–
Wealth
|
2,020
|
1,742
|
278
|
16
|
—
|
|
–
Other3
|
13
|
103
|
(90)
|
(87)
|
—
|
|
– Commercial Banking
|
846
|
850
|
(4)
|
—
|
—
|
|
–
Wholesale Transaction Banking
|
578
|
545
|
33
|
6
|
—
|
|
–
Credit and Lending
|
55
|
57
|
(2)
|
(4)
|
—
|
|
–
Other3
|
213
|
248
|
(35)
|
(14)
|
—
|
|
Revenue excluding notable items
|
12,228
|
11,539
|
689
|
6
|
—
|
|
Notable items
|
—
|
—
|
—
|
N/A
|
—
|
|
Revenue
|
12,228
|
11,539
|
689
|
6
|
—
|
|
RoTE
(annualised)4 (%)
|
43.3
|
33.9
|
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
43.4
|
33.9
|
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
2 For a
description of how we derive banking NII, see page 11. In the Hong
Kong business, there are no adjustments to NII to derive banking
NII.
3
Includes revenue from Markets Treasury. It also includes other
non-product-specific income and notional tax credits.
4 For
details of our RoTE calculation by business segment, see page
39.
|
Notable items
|
||||
|
|
Nine months ended
|
Quarter ended
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Operating expenses
|
|
|
|
|
|
Restructuring and other related costs
|
(7)
|
(13)
|
—
|
(4)
|
|
Currency
translation on operating expenses notable items
|
|
—
|
|
(1)
|
Profit
before tax of $7.7bn increased by $0.8bn or 12% compared with 9M25
on a constant currency basis.
Revenue
of $12.2bn was $0.7bn or 6% higher on a constant currency
basis.
Banking
NII of $9.1bn increased by $0.5bn or 5%. The increase was mainly
due to the impact of deposit balance growth and higher lending
balances, partly offset by the impact of lower average margins on
time deposits due to market competition, and an adverse one-off
impact of $0.1bn in 9M26.
Fee and
other income of $3.2bn was up by $0.2bn or 8%. In Retail Banking
and Wealth, fee and other income increased, primarily driven by
growth in Wealth, underpinned by a strong performance in Investment
Distribution reflecting higher customer activity and invested asset
balance growth.
ECL of
$0.8bn in 9M26 were $0.4bn lower than in 9M25 on a constant
currency basis, primarily reflecting lower charges related to the
Hong Kong CRE sector.
Operating
expenses increased by $0.2bn to $3.7bn on a constant currency
basis, driven by continued investment in our Wealth business and
the impact of inflation. These increases were partly mitigated by
cost reductions from our organisational
simplification.
3Q26
compared with 3Q25
|
Results – on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
4,096
|
3,873
|
223
|
6
|
—
|
|
ECL
|
(248)
|
(302)
|
54
|
18
|
—
|
|
Operating expenses
|
(1,283)
|
(1,200)
|
(83)
|
(7)
|
—
|
|
Share of profit/(loss) from associates and joint
ventures
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
2,565
|
2,371
|
194
|
8
|
—
|
1
Impact of strategic transactions classified as material notable
items.
|
Management view of revenue – on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
3,077
|
2,862
|
215
|
8
|
—
|
|
Fee and other income
|
1,019
|
1,011
|
8
|
1
|
—
|
|
– Retail Banking and Wealth
|
749
|
747
|
2
|
—
|
—
|
|
–
Retail Banking
|
93
|
84
|
9
|
11
|
—
|
|
–
Wealth
|
687
|
645
|
42
|
7
|
—
|
|
–
Other3
|
(31
|
18
|
(49
|
>(100)
|
—
|
|
– Commercial Banking
|
270
|
264
|
6
|
2
|
—
|
|
–
Wholesale Transaction Banking
|
194
|
184
|
10
|
5
|
—
|
|
–
Credit and Lending
|
17
|
16
|
1
|
6
|
—
|
|
–
Other3
|
59
|
64
|
(5
|
(8
|
—
|
|
Revenue excluding notable items
|
4,096
|
3,873
|
223
|
6
|
—
|
|
Notable items
|
—
|
—
|
—
|
N/A
|
—
|
|
Revenue
|
4,096
|
3,873
|
223
|
6
|
—
|
1
Impact of strategic transactions classified as material notable
items.
2 For a
description of how we derive banking NII, see page 11. In the Hong
Kong business, there are no adjustments to NII to derive banking
NII.
3
Includes revenue from Markets Treasury. It also includes other
non-product-specific income and notional tax credits.
Profit
before tax of $2.6bn increased by $0.2bn or 8% compared with 3Q25,
on a constant currency basis. The increase reflected $0.2bn of
revenue growth, primarily driven by a $0.2bn increase in banking
NII due to deposit balance growth, partly offset by the impact of
lower average margins on time deposits due to market competition.
In addition, ECL were lower on a constant currency basis due to a
reduction in charges related to the Hong Kong CRE sector. This was
partly offset by higher planned spend and investment in technology,
and the impact of inflation.
UK – constant currency basis
9M26 compared
with 9M25
|
Results – on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
9,949
|
9,457
|
492
|
5
|
—
|
|
ECL
|
(687)
|
(611)
|
(76)
|
(12)
|
—
|
|
Operating expenses
|
(4,088)
|
(4,072)
|
(16)
|
—
|
(1)
|
|
Share of profit/(loss) from associates and joint
ventures
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
5,174
|
4,774
|
400
|
8
|
(1)
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
|
Management view of revenue – on a constant currency
basis
|
||||
|
|
Nine months ended
|
|||
|
|
|
Variance
|
||
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
8,640
|
8,118
|
522
|
6
|
|
Fee and other income
|
1,309
|
1,339
|
(30)
|
(2)
|
|
– Retail Banking and Wealth
|
501
|
498
|
3
|
1
|
|
–
Retail Banking
|
197
|
208
|
(11)
|
(5)
|
|
–
Wealth
|
276
|
274
|
2
|
1
|
|
–
Other3
|
28
|
16
|
12
|
75
|
|
– Commercial Banking
|
808
|
841
|
(33)
|
(4)
|
|
–
Wholesale Transaction Banking
|
638
|
641
|
(3)
|
—
|
|
–
Credit and Lending
|
182
|
177
|
5
|
3
|
|
–
Other3
|
(12)
|
23
|
(35)
|
>(100)
|
|
Revenue excluding notable items
|
9,949
|
9,457
|
492
|
5
|
|
Notable items
|
—
|
—
|
—
|
N/A
|
|
Revenue
|
9,949
|
9,457
|
492
|
5
|
|
RoTE
(annualised)4 (%)
|
21.3
|
22.2
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
21.4
|
22.5
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
2 For a
description of how we derive banking NII, see page 11. In the UK
business, there are no adjustments to NII to derive banking
NII.
3
Includes revenue from Markets Treasury. It also includes other
non-product-specific income and notional tax credits.
4 For
details of our RoTE calculation by business segment, see page
39.
|
Notable items
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Sep 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Operating expenses
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
1
|
—
|
—
|
—
|
|
Restructuring and other related costs
|
(35)
|
(63)
|
(26)
|
(15)
|
(15)
|
|
Currency
translation on operating expenses notable items
|
|
—
|
—
|
—
|
—
|
Profit
before tax of $5.2bn increased by $0.4bn or 8% compared with 9M25
on a constant currency basis.
Revenue
of $9.9bn was $0.5bn or 5% higher on a constant currency
basis.
Banking
NII of $8.6bn increased by $0.5bn or 6%, reflecting the benefit of
reinvestment of our structural hedge at higher yields, and growth
in lending and deposit balances.
Fee and
other income of $1.3bn decreased by $30m or 2% compared with 9M25,
reflecting strategic actions taken to support small businesses and
Premier customers.
ECL of
$0.7bn in 9M26 increased by $0.1bn compared with 9M25 on a constant
currency basis. The 9M26 period included the addition of allowances
to reflect the ongoing uncertainty of impacts related to the
conflict in the Middle East.
Operating
expenses of $4.1bn were broadly stable on a constant currency
basis. Increases from continued investment in technology, the
impact of inflation and higher branch security costs were partly
mitigated by cost reductions from our organisational
simplification.
3Q26
compared with 3Q25
|
Results – on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
3,419
|
3,216
|
203
|
6
|
—
|
|
ECL
|
(182)
|
(271)
|
89
|
33
|
—
|
|
Operating expenses
|
(1,395)
|
(1,400)
|
5
|
—
|
—
|
|
Share of profit/(loss) from associates and joint
ventures
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
1,842
|
1,545
|
297
|
19
|
—
|
1
Impact of strategic transactions classified as material notable
items.
|
Management view of revenue – on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
2,959
|
2,765
|
194
|
7
|
—
|
|
Fee and other income
|
460
|
451
|
9
|
2
|
—
|
|
– Retail Banking and Wealth
|
173
|
172
|
1
|
1
|
—
|
|
–
Retail Banking
|
64
|
70
|
(6)
|
(9)
|
—
|
|
–
Wealth
|
98
|
93
|
5
|
5
|
—
|
|
–
Other3
|
11
|
9
|
2
|
22
|
—
|
|
– Commercial Banking
|
287
|
279
|
8
|
3
|
—
|
|
–
Wholesale Transaction Banking
|
219
|
208
|
11
|
5
|
—
|
|
–
Credit and Lending
|
60
|
64
|
(4)
|
(6)
|
—
|
|
–
Other3
|
8
|
7
|
1
|
14
|
—
|
|
Revenue excluding notable items
|
3,419
|
3,216
|
203
|
6
|
—
|
|
Notable items
|
—
|
—
|
—
|
N/A
|
—
|
|
Revenue
|
3,419
|
3,216
|
203
|
6
|
—
|
1
Impact of strategic transactions classified as material notable
items.
2 For a
description of how we derive banking NII, see page 11. In the UK
business, there are no adjustments to NII to derive banking
NII.
3
Includes revenue from Markets Treasury. It also includes other
non-product-specific income and notional tax credits.
Profit
before tax of $1.8bn increased by $0.3bn or 19%, compared with 3Q25
on a constant currency basis. The increase reflected $0.2bn of
revenue growth, primarily driven by higher banking NII due to the
continued benefit of our structural hedge and the impact of balance
sheet growth.
ECL of
$0.2bn decreased by $0.1bn compared with 3Q25 on a constant
currency basis. This mainly reflected lower stage 3 charges in
Commercial Banking.
Operating
expenses were broadly stable on a constant currency basis as the
impact of inflation and higher restructuring and other related
costs were broadly offset by cost reductions from our
organisational simplification.
|
|
Corporate and Institutional Banking – constant currency
basis
9M26
compared with 9M25
|
Results – on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
23,177
|
21,718
|
1,459
|
7
|
(122)
|
|
ECL
|
(1,110)
|
(475)
|
(635)
|
>(100)
|
(1)
|
|
Operating expenses
|
(11,212)
|
(11,741)
|
529
|
5
|
353
|
|
Share
of profit/(loss) from associates and joint ventures
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
10,855
|
9,502
|
1,353
|
14
|
230
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
|
Management view of revenue – on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
11,966
|
11,297
|
669
|
6
|
(69)
|
|
Fee and other income
|
11,171
|
10,428
|
743
|
7
|
(100)
|
|
– Wholesale Transaction Banking
|
7,701
|
7,189
|
512
|
7
|
(18)
|
|
– Investment Banking
|
797
|
776
|
21
|
3
|
(83)
|
|
– Debt and Equity Markets
|
2,312
|
1,975
|
337
|
17
|
(1)
|
|
– Wholesale Credit and Lending
|
370
|
435
|
(65)
|
(15)
|
—
|
|
–
Other3
|
(9)
|
53
|
(62)
|
>(100)
|
2
|
|
Revenue excluding notable items
|
23,137
|
21,725
|
1,412
|
6
|
(169)
|
|
Notable items
|
40
|
(7)
|
47
|
N/A
|
47
|
|
Revenue
|
23,177
|
21,718
|
1,459
|
7
|
(122)
|
|
RoTE
(annualised)4 (%)
|
18.0
|
16.2
|
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
18.1
|
17.6
|
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
2 For a
description of how we derive banking NII, see page 11. In CIB,
there are no adjustments to NII to derive banking NII. The internal
funding costs of trading and fair value net assets are recorded in
’fee and other income’. On consolidation, this funding
is eliminated in Corporate Centre. In 9M26, this funding cost was
$7.2bn (9M25: $7.2bn).
3
Includes revenue from Markets Treasury, hyperinflationary impacts
and principal investments. It also includes other
non-product-specific income and notional tax credits.
4 For
details of our RoTE calculation by business segment, see page
39.
|
Notable items
|
|
|
||
|
|
Nine months ended
|
Quarter ended
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
40
|
(6)
|
18
|
(6)
|
|
Currency
translation on revenue notable items
|
|
(1)
|
—
|
(1)
|
|
Operating expenses
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(24)
|
(213)
|
(6)
|
(34)
|
|
Restructuring and other related costs
|
(65)
|
(272)
|
(21)
|
(55)
|
|
Legal provisions
|
—
|
(321)
|
—
|
(321)
|
|
Currency
translation on operating expenses notable items
|
|
(9
|
—
|
2
|
Profit
before tax of $10.9bn was $1.4bn or 14% higher than in 9M25 on a
constant currency basis, including a favourable impact of $0.2bn
from strategic transactions, mainly notable items.
Revenue
of $23.2bn was $1.5bn or 7% higher on a constant currency
basis.
Banking
NII of $12.0bn increased by $0.7bn or 6%, driven by balance growth
across Securities Services, GPS and GTS, reflecting strong customer
demand. Banking NII also rose from increased funding deployed into
trading activities on higher bullion balances, as well as from
strong financing demand. This was partly offset by lower Wholesale
Credit and Lending banking NII, due to reduced balances and the
impact of lower market interest rates across our main legal
entities in Europe and Mexico compared with 9M25.
Fee and
other income of $11.2bn increased by $0.7bn or 7%.
–
In WTB, fee and
other income increased by $0.5bn or 7%, primarily reflecting growth
in Global Foreign Exchange, an increase in volumes and new mandates
across Securities Services, GPS and GTS. There was also a one-off
recovery fee in GTS.
–
In Debt and Equity
Markets, fee and other income increased by $0.3bn or 17%,
reflecting higher Equity Derivatives, and Prime Finance income
driven by increased volumes and wider margins, which were partly
offset by higher funding costs on increased bullion
balances.
–
In Investment
Banking, fee and other income of $0.8bn was broadly stable as
growth in financing was offset by the impact of the wind-down of
M&A and ECM in the UK, Europe and the US.
–
ECL of
$1.1bn in 9M26 increased by $0.6bn compared with 9M25 on a constant
currency basis. The charge in 9M26 included a $0.5bn charge for a
fraud-related, secondary, securitisation exposure with a financial
sponsor in the UK, higher charges in Asia, as well as an increase
in allowances to reflect uncertainty due to the ongoing conflict in
the Middle East. In 9M25, charges included a single name Middle
Eastern exposure.
Operating
expenses of $11.2bn were $0.5bn or 5% lower than in 9M25 on a
constant currency basis. The decrease reflected the year-on-year
favourable impact from notable items, which in 9M25 primarily
included a legal provision, costs associated with the wind-down of
our M&A and ECM activities in the UK, Europe and the US, and
impairments in Germany. Excluding notable items, operating expenses
increased, reflecting higher planned spend and investment in
technology, and the impact of inflation. This was partly offset by
cost reductions from our organisational
simplification.
3Q26
compared with 3Q25
|
Results – on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
7,568
|
6,900
|
668
|
10
|
(40)
|
|
ECL
|
(216)
|
(162)
|
(54)
|
(33)
|
(1)
|
|
Operating expenses
|
(3,747)
|
(4,041)
|
294
|
7
|
73
|
|
Share of profit/(loss) from associates and joint
ventures
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
3,605
|
2,697
|
908
|
34
|
32
|
1
Impact of strategic transactions classified as material notable
items.
|
Management view of revenue – on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
3,943
|
3,839
|
104
|
3
|
(35)
|
|
Fee and other income
|
3,607
|
3,068
|
539
|
18
|
(30)
|
|
– Wholesale Transaction Banking
|
2,442
|
2,174
|
268
|
12
|
(16)
|
|
– Investment Banking
|
255
|
226
|
29
|
13
|
(14)
|
|
– Debt and Equity Markets
|
726
|
427
|
299
|
70
|
—
|
|
– Wholesale Credit and Lending
|
90
|
151
|
(61)
|
(40)
|
—
|
|
–
Other3
|
94
|
90
|
4
|
4
|
—
|
|
Revenue excluding notable items
|
7,550
|
6,907
|
643
|
9
|
(65)
|
|
Notable items
|
18
|
(7)
|
25
|
N/A
|
25
|
|
Revenue
|
7,568
|
6,900
|
668
|
10
|
(40)
|
1
Impact of strategic transactions classified as material notable
items.
2 For a
description of how we derive banking NII, see page 11. In CIB,
there are no adjustments to NII to derive banking NII. The internal
funding costs of trading and fair value net assets are recorded in
’fee and other income’. On consolidation, this funding
is eliminated in Corporate Centre. In 3Q26, this funding cost was
$2.4bn (3Q25: $2.4bn).
3
Includes revenue from Markets Treasury, hyperinflationary impacts
and principal investments. It also includes other
non-product-specific income and notional tax credits.
Profit
before tax of $3.6bn increased by $0.9bn or 34% compared with 3Q25,
on a constant currency basis. Revenue grew by $0.7bn or 10% on a
constant currency basis, primarily driven by higher fee and other
income. WTB fee and other income increased by $0.3bn mainly
reflecting growth in Global Foreign Exchange, and Debt and
Equity
Markets
fee and other income also increased by $0.3bn driven by client
activity. Banking NII increased by $0.1bn, driven by growth across
Securities Services, GPS and GTS.
ECL
increased by $0.1bn on a constant currency basis, which included
the non-recurrence of net releases in Asia in 3Q25.
Operating
expenses of $3.7bn were $0.3bn lower compared with 3Q25 on a
constant currency basis, reflecting a net favourable movement in
notable items, primarily due to the non-recurrence of a legal
provision in 3Q25, and cost reductions from our organisational
simplification.
|
|
International Wealth and Premier Banking – constant currency
basis
9M26
compared with 9M25
|
Results – on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
11,491
|
11,152
|
339
|
3
|
(348)
|
|
ECL
|
(600)
|
(720)
|
120
|
17
|
3
|
|
Operating expenses
|
(7,181)
|
(7,019)
|
(162)
|
(2)
|
23
|
|
Share of profit/(loss) from associates and joint
ventures
|
31
|
26
|
5
|
19
|
—
|
|
Profit before tax
|
3,741
|
3,439
|
302
|
9
|
(322)
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
|
Management view of revenue – on a constant currency
basis
|
||||||
|
|
Nine months ended
|
|||||
|
|
|
|
Variance
|
|||
|
|
|
|
9M26 vs. 9M25
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
of which strategic transactions1
|
||
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
|
Banking NII2
|
5,254
|
5,443
|
(189)
|
(3)
|
(85)
|
|
|
Fee and other income
|
6,401
|
5,878
|
523
|
9
|
(268)
|
|
|
– Retail Banking
|
538
|
513
|
25
|
5
|
(5)
|
|
|
– Wealth
|
5,855
|
5,300
|
555
|
10
|
(263)
|
|
|
–
Other3
|
8
|
65
|
(57)
|
(88)
|
—
|
|
|
Revenue excluding notable items
|
11,655
|
11,321
|
334
|
3
|
(353)
|
|
|
Notable items
|
(164)
|
(169)
|
5
|
3
|
5
|
|
|
Revenue
|
11,491
|
11,152
|
339
|
3
|
(348)
|
|
|
RoTE
(annualised)4 (%)
|
23.4
|
17.8
|
|
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
26.1
|
19.7
|
|
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
2 For a
description of how we derive banking NII, see page 11. Banking NII
in IWPB is computed by deducting third-party NII in our Insurance
business from total
IWPB
NII, which was $138m in 9M26 (9M25: $337m). Total insurance NII is
presented in ‘fee and other income‘ in
Wealth.
3
Includes allocated revenue from Markets Treasury and
hyperinflationary impacts. It also includes other
non-product-specific income.
4 For
details of our RoTE calculation by business segment, see page
39.
|
Notable items
|
|
|
||
|
|
Nine months ended
|
Quarter ended
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(164)
|
(167)
|
(57)
|
(110)
|
|
Currency
translation on revenue notable items
|
|
(2)
|
—
|
(1)
|
|
Operating expenses
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(103)
|
(54)
|
(67)
|
(49)
|
|
Restructuring and other related costs
|
(101)
|
(108)
|
(35)
|
(29)
|
|
Currency
translation on operating expenses notable items
|
|
(3)
|
—
|
(1)
|
Profit
before tax of $3.7bn was $0.3bn or 9% higher than in 9M25 on a
constant currency basis, including an adverse impact of $0.3bn from
strategic transactions and notable items.
Revenue
of $11.5bn was $0.3bn or 3% higher on a constant currency basis,
including an adverse impact of $0.3bn from strategic transactions
and notable items.
Banking
NII of $5.3bn decreased by $0.2bn or 3% compared with 9M25,
primarily due to lower interest rates, mainly in Asia, partly
offset by growth in deposit balances.
Fee and
other income of $6.4bn was up by $0.5bn or 9%, driven by Wealth due
to growth across all products and in multiple markets, including
Hong Kong, the Chinese mainland, Singapore and Taiwan.
In
Wealth, fee and other income of $5.9bn was up by $0.6bn or 10%
including an adverse impact of $0.3bn from strategic
transactions.
–
Investment
Distribution rose by $0.3bn or 29%, primarily due to higher sales
of mutual funds and structured products, mainly in
Asia.
–
Private Bank
increased by $0.2bn or 15%, as increased customer activity
supported by business initiatives led to strong performances in
brokerage and trading, and from higher annuity fees, driven by
growth in invested asset balances.
–
Insurance income
increased by $0.1bn or 4%, including an adverse impact of $0.2bn
from strategic transactions. The increase reflected a higher CSM
release as a result of strong new business growth and the
non-recurrence of 9M25 losses from onerous contracts, primarily in
the Chinese mainland, largely offset by less favourable net
investment returns.
In
Other, fee and other income was $0.1bn lower compared with 9M25
primarily reflecting lower Markets Treasury
allocations.
Notable
items in 9M26 primarily related to losses of $0.2bn from the
recycling of foreign currency translation reserves following the
completion of the sale of our UK life insurance
business.
ECL of
$0.6bn in 9M26 were $0.1bn lower compared with 9M25 on a constant
currency basis. This reflected a reduction in charges primarily in
Mexico, mainly due to lower unsecured lending, while credit
performance across the rest of the portfolio was
stable.
Operating
expenses of $7.2bn were $0.2bn or 2% higher than in 9M25 on a
constant currency basis, primarily reflecting continued investments
in Wealth, higher planned spend and investment in technology, and
the impact of inflation. These increases were partly mitigated by
cost reductions from our organisational
simplification.
3Q26
compared with 3Q25
|
Results – on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
3,752
|
3,868
|
(116)
|
(3)
|
(105)
|
|
ECL
|
(187)
|
(216)
|
29
|
13
|
1
|
|
Operating expenses
|
(2,454)
|
(2,373)
|
(81)
|
(3)
|
13
|
|
Share of profit/(loss) from associates and joint
ventures
|
14
|
24
|
(10)
|
(42)
|
—
|
|
Profit before tax
|
1,125
|
1,303
|
(178)
|
(14)
|
(91)
|
1
Impact of strategic transactions classified as material notable
items.
|
Management view of revenue – on a constant currency
basis
|
||||||
|
|
Quarter ended
|
|||||
|
|
|
|
Variance
|
|||
|
|
|
|
3Q26 vs. 3Q25
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
of which strategic transactions1
|
||
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
|
Banking NII2
|
1,760
|
1,821
|
(61)
|
(3)
|
(35)
|
|
|
Fee and other income
|
2,049
|
2,158
|
(109)
|
(5)
|
(124)
|
|
|
– Retail Banking
|
154
|
175
|
(21)
|
(12)
|
(2)
|
|
|
– Wealth
|
1,904
|
1,942
|
(38)
|
(2)
|
(122)
|
|
|
–
Other3
|
(9)
|
41
|
(50)
|
>(100)
|
—
|
|
|
Revenue excluding notable items
|
3,809
|
3,979
|
(170)
|
(4)
|
(159)
|
|
|
Notable items
|
(57)
|
(111)
|
54
|
49
|
54
|
|
|
Revenue
|
3,752
|
3,868
|
(116)
|
(3)
|
(105)
|
|
1
Impact of strategic transactions classified as material notable
items.
2 For a
description of how we derive banking NII, see page 11. Banking NII
in IWPB is computed by deducting third-party NII in our Insurance
business from total IWPB NII, which was $46m in 3Q26 (3Q25: $111m).
Total insurance NII is presented in ‘fee and other
income‘ in Wealth.
3
Includes allocated revenue from Markets Treasury and
hyperinflationary impacts. It also includes other
non-product-specific income.
Profit
before tax of $1.1bn decreased by $0.2bn or 14%, compared with 3Q25
on a constant currency basis, including an adverse impact of $0.1bn
from strategic transactions. Revenue was $0.1bn or 3% lower on a
constant currency basis, driven by lower fee and other income and
banking NII. Wealth fee and other income was lower, mainly in
Insurance reflecting the non-recurrence of 3Q25 one-off favourable
impacts and an adverse impact from strategic transactions. This was
partly offset by increases in Investment Distribution and Private
Bank from increased client activity.
Operating
expenses increased by $0.1bn on a constant currency basis,
reflecting continued investments in Wealth, higher planned spend
and investment in technology, and the impact of inflation. These
increases were partly mitigated by cost reductions from our
organisational simplification.
|
|
Corporate Centre – constant currency basis
9M26
compared with 9M25
|
Results – on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
(483)
|
(1,297)
|
814
|
63
|
(290)
|
|
ECL
|
—
|
(66
|
66
|
1
|
—
|
|
Operating expenses
|
(30)
|
(1,175)
|
1,145
|
97
|
(94)
|
|
Share
of profit/(loss) from associates and joint ventures
|
2,194
|
1,244
|
950
|
76
|
—
|
|
Profit before tax
|
1,681
|
(1,294)
|
2,975
|
>100
|
(384)
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
|
Management view of revenue – on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M26 vs. 9M25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
(360)
|
(572)
|
212
|
37
|
90
|
|
Fee and other income
|
239
|
548
|
(309)
|
(56)
|
(126)
|
|
Revenue excluding notable items
|
(121)
|
(24)
|
(97)
|
>(100)
|
(36)
|
|
Notable
items
|
(362)
|
(1,273)
|
911
|
72
|
(254)
|
|
Revenue3
|
(483)
|
(1,297)
|
814
|
63
|
(290)
|
|
RoTE
(annualised)4 (%)
|
2.9
|
(4.3
|
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
4.6
|
6.7
|
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 30.
2 For a
description of how we derive banking NII, see page 11. Banking NII
in Corporate Centre is computed by deducting the internal cost to
fund trading and fair value net assets for which associated revenue
is reported in ‘Net income from financial instruments held
for trading or managed on a fair value basis’. Corporate
Centre banking net interest expense includes funding charges on
property and technology assets, and the banking NII of the French
retained portfolio of home and other loans prior to
disposal.
3
Revenue from Markets Treasury, HSBC Holdings net interest expense
and hyperinflation are allocated out to the business segments, to
align them better with their revenue and expense. The total Markets
Treasury revenue component of this allocation for 9M26 was $1,441m
(9M25: $1,835m).
4 For
details of our RoTE calculation by business segment, see page
39.
|
Notable items
|
|
|
||
|
|
Nine months ended
|
Quarter ended
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(362)
|
(110)
|
(21)
|
(28)
|
|
Dilution loss of interest in BoCom associate
|
|
(1,104)
|
|
32
|
|
Currency
translation on revenue notable items
|
|
(59)
|
—
|
1
|
|
Operating expenses
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(191)
|
(79)
|
(116)
|
(35)
|
|
Restructuring and other related costs
|
(250)
|
(317)
|
(58)
|
(54)
|
|
Legal
provisions
|
|
(1,100)
|
|
(1,100)
|
|
Currency
translation on operating expenses notable items
|
|
(2)
|
—
|
5
|
|
Impairment of interest in associate
|
|
(1,000)
|
|
—
|
|
Currency translation on associate notable items
|
|
(67)
|
—
|
—
|
Profit
before tax of $1.7bn was $3.0bn higher than in 9M25, on a constant
currency basis.
Revenue
was $0.8bn higher on a constant currency basis, primarily
reflecting a $0.9bn net favourable impact from notable
items.
In
9M26, notable items included a $0.3bn disposal loss recognised on
classification to held for sale of our business in Malta. In 9M25,
notable items included a $1.1bn dilution loss related to BoCom, and
$0.1bn of fair value losses on ADRs received as part of the sale
consideration for our business in Argentina, which were disposed of
in 2Q25.
Banking
NII in 9M26 excluded from NII the internal cost to fund trading and
fair value of net assets, predominantly in CIB, of $7.2bn (9M25:
$7.2bn). Banking NII was favourable by $0.2bn compared with 9M25 on
a constant currency basis, primarily reflecting the impact of the
disposal of our retained French portfolio of home and certain other
loans in the second half of 2025.
Fee and
other income was $0.3bn lower compared with 9M25, primarily driven
by valuation losses on financial instruments and structural foreign
exchange hedges, together with the non-recurrence of $0.1bn in fair
value gains on non-qualifying hedges related to our retained French
portfolio of home and certain other loans. This was partly offset
by a one-off $0.2bn gain from a property asset disposal in
9M26.
Operating
expenses were $1.1bn lower on a constant currency basis, primarily
reflecting the non-recurrence of legal provisions in 9M25 of $1.1bn
and lower restructuring and other related costs associated with our
organisational simplification.
Share
of profit from associates and joint ventures less impairment of
$2.2bn increased by $1.0bn on a constant currency basis, primarily
due to the non-recurrence of an impairment related to
BoCom.
3Q26
compared with 3Q25
|
Results – on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
(215)
|
(99)
|
(116)
|
>(100)
|
14
|
|
ECL
|
1
|
(65)
|
66
|
>100
|
—
|
|
Operating expenses
|
57
|
(1,040)
|
1,097
|
>100
|
(74)
|
|
Share of profit/(loss) from associates and joint
ventures
|
652
|
590
|
62
|
11
|
—
|
|
Profit before tax
|
495
|
(614)
|
1,109
|
>100
|
(60)
|
1
Impact of strategic transactions classified as material notable
items.
|
Management view of revenue – on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q26 vs. 3Q25
|
||
|
|
30 Sep 2026
|
30 Sep 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
(83)
|
(237)
|
154
|
65
|
24
|
|
Fee and other income
|
(111)
|
133
|
(244)
|
>(100)
|
(17)
|
|
Revenue excluding notable items
|
(194)
|
(104)
|
(90)
|
(87
|
7
|
|
Notable
items
|
(21)
|
5
|
(26)
|
>(100)
|
7
|
|
Revenue3
|
(215)
|
(99)
|
(116)
|
>(100)
|
14
|
1
Impact of strategic transactions classified as material notable
items.
2 For a
description of how we derive banking NII, see page 11. Banking NII
in Corporate Centre is computed by deducting the internal cost to
fund trading and fair value net assets for which associated revenue
is reported in ‘Net income from financial instruments held
for trading or managed on a fair value basis’. Corporate
Centre banking net interest expense includes funding charges on
property and technology assets, and the banking NII of the French
retained portfolio of home and other loans prior to
disposal.
3
Revenue from Markets Treasury, HSBC Holdings net interest expense
and hyperinflationary impacts are allocated out to the business
segments, to align them better with their revenue and expense. The
total Markets Treasury revenue component of this allocation for
3Q26 was $423m (3Q25: $606m).
Profit
before tax of $0.5bn was $1.1bn higher compared with 3Q25 on a
constant currency basis, primarily driven by the non-recurrence of
legal provisions in 3Q25 of $1.1bn. Revenue decreased by $0.1bn on
a constant currency basis, primarily due to lower fee and other
income, reflecting valuation losses on financial instruments and
structural foreign exchange hedges, partly offset by a $0.2bn
favourable movement in banking NII which included the impact of the
disposal of our retained French portfolio of home and certain other
loans in the second half of 2025. In 3Q26, banking NII excluded
from NII the internal cost to fund trading and fair value of net
assets, predominantly in CIB, of $2.4bn (3Q25:
$2.4bn).
Supplementary
financial information
|
|
Reported and constant currency results
|
Reported and constant currency results
|
|||||||||
|
|
Nine months ended
|
Quarter ended
|
|||||||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||
|
Revenue
|
|
|
|
|
|
||||
|
Reported
|
56,362
|
51,910
|
18,620
|
19,118
|
17,788
|
||||
|
Currency translation
|
—
|
659
|
—
|
(20)
|
(30)
|
||||
|
Constant currency
|
56,362
|
52,569
|
18,620
|
19,098
|
17,758
|
||||
|
Change in expected credit losses and other credit impairment
charges
|
|
|
|
|
|
||||
|
Reported
|
(3,185)
|
(2,949)
|
(832)
|
(1,052)
|
(1,008)
|
||||
|
Currency translation
|
—
|
(82)
|
—
|
—
|
(8)
|
||||
|
Constant currency
|
(3,185)
|
(3,031)
|
(832)
|
(1,052)
|
(1,016)
|
||||
|
Operating expenses
|
|
|
|
|
|
||||
|
Reported
|
(26,248)
|
(27,098)
|
(8,822)
|
(8,705)
|
(10,076)
|
||||
|
Currency translation
|
—
|
(407)
|
—
|
15
|
22
|
||||
|
Constant currency
|
(26,248)
|
(27,505)
|
(8,822)
|
(8,690)
|
(10,054)
|
||||
|
Share of profit in associates and joint ventures less
impairment
|
|
|
|
|
|
||||
|
Reported
|
2,225
|
1,242
|
666
|
785
|
591
|
||||
|
Currency translation
|
—
|
28
|
—
|
5
|
23
|
||||
|
Constant currency
|
2,225
|
1,270
|
666
|
790
|
614
|
||||
|
Profit before tax
|
|
|
|
|
|
||||
|
Reported
|
29,154
|
23,105
|
9,632
|
10,146
|
7,295
|
||||
|
Currency translation
|
—
|
198
|
—
|
—
|
7
|
||||
|
Constant currency
|
29,154
|
23,303
|
9,632
|
10,146
|
7,302
|
||||
|
Profit after tax
|
|
|
|
|
|
||||
|
Reported
|
22,892
|
17,944
|
7,571
|
7,927
|
5,503
|
||||
|
Currency translation
|
—
|
154
|
—
|
3
|
22
|
||||
|
Constant currency
|
22,892
|
18,098
|
7,571
|
7,930
|
5,525
|
||||
|
Loans and advances to external customers (net)
|
|
|
|
|
|
||||
|
Reported
|
1,029,858
|
982,886
|
1,029,858
|
1,022,105
|
982,886
|
||||
|
Currency translation
|
—
|
(5,502)
|
—
|
1,071
|
(5,502)
|
||||
|
Constant currency
|
1,029,858
|
977,384
|
1,029,858
|
1,023,176
|
977,384
|
||||
|
External customer accounts
|
|
|
|
|
|
||||
|
Reported
|
1,836,801
|
1,737,247
|
1,836,801
|
1,827,703
|
1,737,247
|
||||
|
Currency translation
|
—
|
(12,478)
|
—
|
2,606
|
(12,478)
|
||||
|
Constant currency
|
1,836,801
|
1,724,769
|
1,836,801
|
1,830,309
|
1,724,769
|
||||
|
Notable items
|
|
||||||||||||||||||||
|
|
Nine months ended
|
Quarter
ended
|
||||||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||
|
Revenue
|
|
|
|
|
|
|||
|
Disposals, wind-downs, acquisitions and related
costs1
|
(486)
|
(283)
|
(60)
|
75
|
(144)
|
|||
|
Dilution loss of interest in BoCom associate2
|
—
|
(1,104)
|
—
|
—
|
32
|
|||
|
Operating expenses
|
|
|
|
|
|
|||
|
Disposals, wind-downs, acquisitions and related costs
|
(318)
|
(345)
|
(189)
|
(79)
|
(118)
|
|||
|
Restructuring and other related costs3
|
(458)
|
(773)
|
(140)
|
(190)
|
(157)
|
|||
|
Legal provisions4
|
—
|
(1,421)
|
—
|
—
|
(1,421)
|
|||
|
Impairment loss of interest in BoCom associate2
|
—
|
(1,000)
|
—
|
—
|
—
|
|||
|
Tax
|
|
|
|
|
|
|||
|
Tax credit on notable items
|
173
|
421
|
89
|
37
|
42
|
|||
1 Amounts in
9M26 include $0.2bn from the recycling of foreign currency
translation reserve losses arising on completion of the sale of our
UK life insurance business, HSBC Life (UK) Limited, $0.3bn of
disposal losses recognised upon the classification as ‘held
for sale’ of HSBC Continental Europe’s shareholding in
HSBC Bank Malta plc, and disposal losses relating to HSBC
Australia’s portfolios of home and personal loans and credit
cards, which together with related restructuring costs and
write-downs reported in operating expenses, totalled $0.2bn in
3Q26. The amount in 9M25 includes a $0.1bn mark-to-market gain on
interest rate hedging of the portfolio of retained loans post sale
of our retail banking operations in France and a $0.1bn fair value
loss on Galicia‘s ADRs received as purchase consideration
from the sale of our business in Argentina, which were disposed of
in 2Q25.
2
Includes a loss of $1.1bn inclusive of reserves recycling as a
result of the dilution of our shareholding in BoCom. We have also
recognised a $1.0bn impairment loss following an impairment test on
the carrying value of the Group’s investment in BoCom in
‘Impairment loss of interest in BoCom
associate’.
3
Amounts relate to organisational simplification provisions
recognised in 2025 and 2026.
4
During 3Q25, a $1.1bn provision was recognised in connection with a
claim brought by Herald Fund SPC in the Luxembourg District Court,
relating to the Bernard L. Madoff Investment Securities LLC fraud
and a $0.3bn provision was recognised in connection with certain
historical trading activities in HSBC Bank plc.
Reported and constant currency results – business
segments
|
Reported and constant currency results – business
segments
|
||||||
|
|
Nine months ended 30 Sep 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
12,228
|
9,949
|
23,177
|
11,491
|
(483)
|
56,362
|
|
ECL
|
(788)
|
(687)
|
(1,110)
|
(600)
|
—
|
(3,185)
|
|
Operating expenses
|
(3,737)
|
(4,088)
|
(11,212)
|
(7,181)
|
(30)
|
(26,248)
|
|
Share of profit in associates and joint ventures less
impairment
|
—
|
—
|
—
|
31
|
2,194
|
2,225
|
|
Profit before tax
|
7,703
|
5,174
|
10,855
|
3,741
|
1,681
|
29,154
|
|
Loans and advances to customers (net)
|
237,207
|
314,191
|
336,446
|
141,873
|
141
|
1,029,858
|
|
Customer accounts
|
557,280
|
349,008
|
647,278
|
282,619
|
616
|
1,836,801
|
|
|
|
|
|
|
|
|
|
|
Nine months ended 30 Sep 2025
|
|||||
|
Revenue
|
11,539
|
9,457
|
21,718
|
11,152
|
(1,297)
|
52,569
|
|
ECL
|
(1,159)
|
(611)
|
(475)
|
(720)
|
(66
|
(3,031)
|
|
Operating expenses
|
(3,498)
|
(4,072)
|
(11,741)
|
(7,019)
|
(1,175)
|
(27,505)
|
|
Share of profit in associates and joint ventures
|
—
|
—
|
—
|
26
|
1,244
|
1,270
|
|
Profit before tax
|
6,882
|
4,774
|
9,502
|
3,439
|
(1,294)
|
23,303
|
|
Loans and advances to customers (net)
|
222,891
|
291,914
|
311,187
|
151,234
|
158
|
977,384
|
|
Customer accounts
|
505,151
|
339,734
|
605,458
|
274,033
|
393
|
1,724,769
|
|
Notable items – business segments
|
|||||||||||||||||||
|
|
Nine months ended 30 Sep 2026
|
||||||||||||||||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|||||||||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||||||||
|
Revenue
|
|
|
|
|
|
|
|||||||||||||
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
—
|
40
|
(164)
|
(362)
|
(486)
|
|||||||||||||
|
Operating expenses
|
|
|
|
|
|
|
|||||||||||||
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
—
|
(24)
|
(103)
|
(191)
|
(318)
|
|||||||||||||
|
Restructuring
and other related costs3
|
(7)
|
(35)
|
(65)
|
(101)
|
(250)
|
(458)
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Nine months ended 30 Sep 2025
|
||||||||||||||||||
|
Revenue
|
|
|
|
|
|
|
|||||||||||||
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
—
|
(6)
|
(167)
|
(110)
|
(283)
|
|||||||||||||
|
Dilution
loss of interest in BoCom associate2
|
—
|
—
|
—
|
—
|
(1,104)
|
(1,104)
|
|||||||||||||
|
Operating expenses
|
|
|
|
|
|
|
|||||||||||||
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
1
|
(213)
|
(54)
|
(79)
|
(345)
|
|||||||||||||
|
Restructuring
and other related costs3
|
(13)
|
(63)
|
(272)
|
(108)
|
(317)
|
(773)
|
|||||||||||||
|
Legal
provisions4
|
—
|
—
|
(321)
|
—
|
(1,100)
|
(1,421)
|
|||||||||||||
|
Impairment
loss of interest in BoCom associate2
|
—
|
—
|
—
|
—
|
(1,000)
|
(1,000)
|
|||||||||||||
1 Amounts in
9M26 include $0.2bn from the recycling of foreign currency
translation reserve losses arising on completion of the sale of our
UK life insurance business, HSBC Life (UK) Limited, $0.3bn of
disposal losses recognised upon the classification as ‘held
for sale’ of HSBC Continental Europe’s shareholding in
HSBC Bank Malta plc, and disposal losses relating to HSBC
Australia’s portfolios of home and personal loans and credit
cards, which together with related restructuring costs and
write-downs reported in operating expenses, totalled $0.2bn in
3Q26. The amount in 9M25 includes a $0.1bn mark-to-market gain on
interest rate hedging of the portfolio of retained loans post sale
of our retail banking operations in France and a $0.1bn fair value
loss on Galicia‘s ADRs received as purchase consideration
from the sale of our business in Argentina, which were disposed of
in 2Q25.
2
Includes a loss of $1.1bn inclusive of reserves recycling as a
result of the dilution of our shareholding in BoCom. We have also
recognised a $1.0bn impairment loss following an impairment test on
the carrying value of the Group’s investment in BoCom in
‘Impairment loss of interest in BoCom
associate’.
3
Amounts relate to organisational simplification provisions
recognised in 2025 and 2026.
4
During 3Q25, a $1.1bn provision was recognised in connection with a
claim brought by Herald Fund SPC in the Luxembourg District Court,
relating to the Bernard L. Madoff Investment Securities LLC fraud
and a $0.3bn provision was recognised in connection with certain
historical trading activities in HSBC Bank plc.
|
Reconciliation of reported results to constant currency results
– business segments
|
||||||
|
|
Nine months ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
–
Reported
|
11,567
|
9,241
|
21,419
|
10,834
|
(1,151)
|
51,910
|
|
–
Currency translation
|
(28)
|
216
|
299
|
318
|
(146)
|
659
|
|
–
Constant currency
|
11,539
|
9,457
|
21,718
|
11,152
|
(1,297)
|
52,569
|
|
ECL
|
|
|
|
|
|
|
|
–
Reported
|
(1,161)
|
(599)
|
(465)
|
(657)
|
(67)
|
(2,949)
|
|
–
Currency translation
|
2
|
(12)
|
(10)
|
(63)
|
1
|
(82)
|
|
–
Constant currency
|
(1,159)
|
(611)
|
(475)
|
(720)
|
(66)
|
(3,031)
|
|
Operating expenses
|
|
|
|
|
|
|
|
–
Reported
|
(3,502)
|
(3,981)
|
(11,562)
|
(6,819)
|
(1,234)
|
(27,098)
|
|
–
Currency translation
|
4
|
(91)
|
(179)
|
(200)
|
59
|
(407)
|
|
–
Constant currency
|
(3,498)
|
(4,072)
|
(11,741)
|
(7,019)
|
(1,175)
|
(27,505)
|
|
Share of profit/(loss) in associates and joint
ventures
|
|
|
|
|
|
|
|
–
Reported
|
—
|
—
|
—
|
26
|
1,216
|
1,242
|
|
–
Currency translation
|
—
|
—
|
—
|
—
|
28
|
28
|
|
–
Constant currency
|
—
|
—
|
—
|
26
|
1,244
|
1,270
|
|
Profit
before tax
|
|
|
|
|
|
|
|
–
Reported
|
6,904
|
4,661
|
9,392
|
3,384
|
(1,236)
|
23,105
|
|
–
Currency translation
|
(22)
|
113
|
110
|
55
|
(58)
|
198
|
|
–
Constant currency
|
6,882
|
4,774
|
9,502
|
3,439
|
(1,294)
|
23,303
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
–
Reported
|
224,264
|
295,608
|
312,200
|
150,654
|
160
|
982,886
|
|
–
Currency translation
|
(1,373)
|
(3,694)
|
(1,013)
|
580
|
(2)
|
(5,502)
|
|
–
Constant currency
|
222,891
|
291,914
|
311,187
|
151,234
|
158
|
977,384
|
|
Customer accounts
|
|
|
|
|
|
|
|
–
Reported
|
508,691
|
344,033
|
610,275
|
273,849
|
399
|
1,737,247
|
|
–
Currency translation
|
(3,540)
|
(4,299)
|
(4,817)
|
184
|
(6)
|
(12,478)
|
|
–
Constant currency
|
505,151
|
339,734
|
605,458
|
274,033
|
393
|
1,724,769
|
Reported and constant currency results – business
segments
|
Reported and constant currency results – business
segments
|
||||||
|
|
Quarter ended 30 Sep 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
4,096
|
3,419
|
7,568
|
3,752
|
(215)
|
18,620
|
|
ECL
|
(248)
|
(182
|
(216)
|
(187)
|
1
|
(832)
|
|
Operating expenses
|
(1,283)
|
(1,395)
|
(3,747)
|
(2,454)
|
57
|
(8,822)
|
|
Share of profit in associates and joint ventures
|
—
|
—
|
—
|
14
|
652
|
666
|
|
Profit before tax
|
2,565
|
1,842
|
3,605
|
1,125
|
495
|
9,632
|
|
Loans
and advances to external customers (net)
|
237,207
|
314,191
|
336,446
|
141,873
|
141
|
1,029,858
|
|
External
customer accounts
|
557,280
|
349,008
|
647,278
|
282,619
|
616
|
1,836,801
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 Jun 2026
|
|||||
|
Revenue
|
4,104
|
3,283
|
7,811
|
3,984
|
(84)
|
19,098
|
|
ECL
|
(332)
|
(303)
|
(215)
|
(202)
|
—
|
(1,052)
|
|
Operating expenses
|
(1,226)
|
(1,292)
|
(3,687)
|
(2,390)
|
(95)
|
(8,690)
|
|
Share
of profit in associates and joint ventures
|
—
|
—
|
—
|
(7)
|
797
|
790
|
|
Profit before tax
|
2,546
|
1,688
|
3,909
|
1,385
|
618
|
10,146
|
|
Loans
and advances to external customers (net)
|
230,463
|
306,961
|
332,026
|
153,566
|
160
|
1,023,176
|
|
External
customer accounts
|
536,636
|
349,236
|
671,464
|
272,777
|
196
|
1,830,309
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 Sep 2025
|
|||||
|
Revenue
|
3,873
|
3,216
|
6,900
|
3,868
|
(99)
|
17,758
|
|
ECL
|
(302)
|
(271
|
(162)
|
(216)
|
(65)
|
(1,016)
|
|
Operating expenses
|
(1,200)
|
(1,400)
|
(4,041)
|
(2,373)
|
(1,040)
|
(10,054)
|
|
Share of profit in associates and joint ventures
|
—
|
—
|
—
|
24
|
590
|
614
|
|
Profit before tax
|
2,371
|
1,545
|
2,697
|
1,303
|
(614)
|
7,302
|
|
Loans
and advances to external customers (net)
|
222,891
|
291,914
|
311,187
|
151,234
|
158
|
977,384
|
|
External
customer accounts
|
505,151
|
339,734
|
605,458
|
274,033
|
393
|
1,724,769
|
|
Notable items – business segments
|
|||||||||||||||||||
|
|
Quarter ended 30 Sep 2026
|
||||||||||||||||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|||||||||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||||||||
|
Revenue
|
|
|
|
|
|
|
|||||||||||||
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
—
|
18
|
(57)
|
(21)
|
(60)
|
|||||||||||||
|
Operating expenses
|
|
|
|
|
|
|
|||||||||||||
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
—
|
(6)
|
(67)
|
(116)
|
(189)
|
|||||||||||||
|
Restructuring
and other related costs2
|
—
|
(26)
|
(21)
|
(35)
|
(58)
|
(140)
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Quarter ended 30 Jun 2026
|
||||||||||||||||||
|
Revenue
|
|
|
|
|
|
|
|||||||||||||
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
—
|
16
|
60
|
(1)
|
75
|
|||||||||||||
|
Operating expenses
|
|
|
|
|
|
|
|||||||||||||
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
—
|
(6)
|
(30)
|
(43)
|
(79)
|
|||||||||||||
|
Restructuring
and other related costs2
|
(3)
|
(1)
|
(25)
|
(45)
|
(116)
|
(190)
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Quarter ended 30 Sep 2025
|
||||||||||||||||||
|
Revenue
|
|
|
|
|
|
|
|||||||||||||
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
—
|
(6)
|
(110)
|
(28)
|
(144)
|
|||||||||||||
|
Dilution loss of interest in BoCom associate
|
—
|
—
|
—
|
—
|
32
|
32
|
|||||||||||||
|
Operating expenses
|
|
|
|
|
|
|
|||||||||||||
|
Disposals,
wind-downs, acquisitions and related costs
|
—
|
—
|
(34)
|
(49)
|
(35)
|
(118)
|
|||||||||||||
|
Restructuring
and other related costs2
|
(4)
|
(15)
|
(55)
|
(29)
|
(54)
|
(157)
|
|||||||||||||
|
Legal
provision3
|
—
|
—
|
(321)
|
—
|
(1,100)
|
(1,421)
|
|||||||||||||
1
Amounts in 3Q26 include disposal losses relating to HSBC
Australia’s portfolios of home and personal loans and credit
cards, which together with related restructuring costs and
write-downs reported in operating expenses, totalled
$0.2bn.
2
Amounts relate to organisational simplification provisions
recognised in 3Q26, 2Q26 and 3Q25.
3
During 3Q25, a $1.1bn provision was recognised in connection with a
claim brought by Herald Fund SPC in the Luxembourg District Court,
relating to the Bernard L. Madoff Investment Securities LLC fraud
and a $0.3bn provision was recognised in connection with certain
historical trading activities in HSBC Bank plc.
|
Reconciliation of reported results to constant currency results
– business segments
|
||||||
|
|
Quarter ended 30 Jun 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
–
Reported
|
4,108
|
3,280
|
7,821
|
3,990
|
(81)
|
19,118
|
|
–
Currency translation
|
(4)
|
3
|
(10)
|
(6)
|
(3)
|
(20)
|
|
–
Constant currency
|
4,104
|
3,283
|
7,811
|
3,984
|
(84)
|
19,098
|
|
ECL
|
|
|
|
|
|
|
|
–
Reported
|
(332)
|
(302)
|
(215)
|
(203)
|
—
|
(1,052)
|
|
–
Currency translation
|
—
|
(1)
|
—
|
1
|
—
|
—
|
|
–
Constant currency
|
(332)
|
(303)
|
(215)
|
(202)
|
—
|
(1,052)
|
|
Operating expenses
|
|
|
|
|
|
|
|
–
Reported
|
(1,227)
|
(1,291)
|
(3,693)
|
(2,394)
|
(100)
|
(8,705)
|
|
–
Currency translation
|
1
|
(1)
|
6
|
4
|
5
|
15
|
|
–
Constant currency
|
(1,226)
|
(1,292)
|
(3,687)
|
(2,390)
|
(95)
|
(8,690)
|
|
Share of profit in associates and joint ventures
|
|
|
|
|
|
|
|
–
Reported
|
—
|
—
|
—
|
(8)
|
793
|
785
|
|
–
Currency translation
|
—
|
—
|
—
|
1
|
4
|
5
|
|
–
Constant currency
|
—
|
—
|
—
|
(7)
|
797
|
790
|
|
Profit
before tax
|
|
|
|
|
|
|
|
–
Reported
|
2,549
|
1,687
|
3,913
|
1,385
|
612
|
10,146
|
|
–
Currency translation
|
(3)
|
1
|
(4)
|
—
|
6
|
—
|
|
–
Constant currency
|
2,546
|
1,688
|
3,909
|
1,385
|
618
|
10,146
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
–
Reported
|
230,495
|
306,175
|
331,512
|
153,763
|
160
|
1,022,105
|
|
–
Currency translation
|
(32)
|
786
|
514
|
(197)
|
—
|
1,071
|
|
–
Constant currency
|
230,463
|
306,961
|
332,026
|
153,566
|
160
|
1,023,176
|
|
External
customer accounts
|
|
|
|
|
|
|
|
–
Reported
|
536,808
|
348,342
|
669,711
|
272,646
|
196
|
1,827,703
|
|
–
Currency translation
|
(172)
|
894
|
1,753
|
131
|
—
|
2,606
|
|
–
Constant currency
|
536,636
|
349,236
|
671,464
|
272,777
|
196
|
1,830,309
|
|
|
Quarter ended 30 Sep 2025
|
|||||
|
Revenue
|
|
|
|
|
|
|
|
–
Reported
|
3,879
|
3,227
|
6,928
|
3,823
|
(69)
|
17,788
|
|
–
Currency translation
|
(6)
|
(11)
|
(28)
|
45
|
(30)
|
(30)
|
|
–
Constant currency
|
3,873
|
3,216
|
6,900
|
3,868
|
(99)
|
17,758
|
|
ECL
|
|
|
|
|
|
|
|
–
Reported
|
(303)
|
(271)
|
(165)
|
(204)
|
(65)
|
(1,008)
|
|
–
Currency translation
|
1
|
—
|
3
|
(12)
|
—
|
(8)
|
|
–
Constant currency
|
(302)
|
(271)
|
(162)
|
(216)
|
(65)
|
(1,016)
|
|
Operating expenses
|
|
|
|
|
|
|
|
–
Reported
|
(1,201)
|
(1,405)
|
(4,049)
|
(2,351
|
(1,070)
|
(10,076)
|
|
–
Currency translation
|
1
|
5
|
8
|
(22)
|
30
|
22
|
|
–
Constant currency
|
(1,200)
|
(1,400)
|
(4,041)
|
(2,373)
|
(1,040)
|
(10,054)
|
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
–
Reported
|
—
|
—
|
—
|
24
|
567
|
591
|
|
–
Currency translation
|
—
|
—
|
—
|
—
|
23
|
23
|
|
–
Constant currency
|
—
|
—
|
—
|
24
|
590
|
614
|
|
Profit
before tax
|
|
|
|
|
|
|
|
–
Reported
|
2,375
|
1,551
|
2,714
|
1,292
|
(637)
|
7,295
|
|
–
Currency translation
|
(4)
|
(6)
|
(17)
|
11
|
23
|
7
|
|
–
Constant currency
|
2,371
|
1,545
|
2,697
|
1,303
|
(614)
|
7,302
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
–
Reported
|
224,264
|
295,608
|
312,200
|
150,654
|
160
|
982,886
|
|
–
Currency translation
|
(1,373)
|
(3,694)
|
(1,013)
|
580
|
(2)
|
(5,502)
|
|
–
Constant currency
|
222,891
|
291,914
|
311,187
|
151,234
|
158
|
977,384
|
|
External
customer accounts
|
|
|
|
|
|
|
|
–
Reported
|
508,691
|
344,033
|
610,275
|
273,849
|
399
|
1,737,247
|
|
–
Currency translation
|
(3,540)
|
(4,299)
|
(4,817)
|
184
|
(6)
|
(12,478)
|
|
–
Constant currency
|
505,151
|
339,734
|
605,458
|
274,033
|
393
|
1,724,769
|
|
Reconciliation of reported risk-weighted assets to constant
currency risk-weighted assets – business
segments
|
||||||
|
|
At 30 Sep 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
Risk-weighted assets
|
|
|
|
|
|
|
|
Reported
|
142.4
|
160.7
|
429.4
|
95.5
|
94.4
|
922.4
|
|
Constant currency
|
142.4
|
160.7
|
429.4
|
95.5
|
94.4
|
922.4
|
|
|
|
|
|
|
|
|
|
|
At
30 Jun 2026
|
|||||
|
Risk-weighted assets
|
|
|
|
|
|
|
|
Reported
|
140.0
|
156.5
|
426.3
|
89.3
|
94.3
|
906.4
|
|
Currency translation
|
0.1
|
0.4
|
—
|
(0.6
|
—
|
(0.1
|
|
Constant currency
|
140.1
|
156.9
|
426.3
|
88.7
|
94.3
|
906.3
|
|
|
|
|
|
|
|
|
|
|
||||||
Strategic transactions supplementary analysis
The
following table presents the selected impacts of strategic
transactions to the Group and our business segments for
transactions that are classified as material notable items. See
page 5 for further information
on material notable items and the impact of strategic
transactions.
|
Constant currency results
|
||||||||
|
|
|
|
|
of which
|
||||
|
|
9M26
|
9M25
|
Variance
9M26 vs. 9M25
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
(486)
|
274
|
(760)
|
—
|
—
|
(122)
|
(348)
|
(290)
|
|
–
distorting impact of operating results
|
—
|
558
|
(558)
|
—
|
—
|
(169)
|
(353)
|
(36)
|
|
–
notable items
|
(486)
|
(284)
|
(202)
|
—
|
—
|
47
|
5
|
(254)
|
|
ECL
|
—
|
(2)
|
2
|
—
|
—
|
(1)
|
3
|
—
|
|
Operating expenses
|
(318)
|
(599)
|
281
|
—
|
(1)
|
353
|
23
|
(94)
|
|
–
distorting impact of operating results
|
—
|
(250)
|
250
|
—
|
—
|
161
|
72
|
17
|
|
–
notable items
|
(318)
|
(349)
|
31
|
—
|
(1)
|
192
|
(49)
|
(111)
|
|
Share of profit in associates and joint ventures
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
(804)
|
(327)
|
(477)
|
—
|
(1)
|
230
|
(322)
|
(384)
|
|
–
distorting impact of operating results
|
—
|
306
|
(306)
|
—
|
—
|
(9)
|
(278)
|
(19)
|
|
–
notable items
|
(804)
|
(633)
|
(171)
|
—
|
(1)
|
239
|
(44)
|
(365)
|
|
Profit before tax1
|
|
|
|
|
|
|
|
|
|
–
life insurance business in UK
|
(185)
|
(7)
|
(178)
|
—
|
—
|
—
|
(168)
|
(10)
|
|
–
wind-down of M&A and ECM in the UK, Europe and US
|
(6)
|
(163)
|
156
|
—
|
—
|
156
|
—
|
—
|
|
–
Australia retail banking business
|
(186)
|
—
|
(186)
|
—
|
—
|
—
|
(127)
|
(59)
|
|
–
business in Malta
|
(351)
|
(45)
|
(306)
|
—
|
—
|
—
|
—
|
(306)
|
|
–
business in Argentina2
|
—
|
(106)
|
106
|
—
|
—
|
—
|
—
|
106
|
|
–
other strategic transactions
|
(76)
|
(6)
|
(69)
|
—
|
(1)
|
74
|
(27)
|
(115)
|
1
Represents the impact on profit before tax due to strategic
transactions, inclusive of the notable items impacts and the
distorting impact of operating results. This does not represent the
profit before tax of each disposed business. In the case of
wind-downs, there may be timing differences between the recognition
of operating cost impacts and operating revenue impacts. These
would arise in the event there is a timing lag between the impact
of cost actions and the resultant impact on operating
revenue.
2 1Q25
impacts relate to fair value losses on ADRs in Galicia received as
part of the sale consideration for our business in Argentina,
disposed of in 2Q25.
Supplementary tables for Wealth
Wealth
balances
The
following table shows our Wealth balances, which include invested
assets and Wealth deposits. From 1 January 2026, we have updated
the definition of our Wealth balances to exclude Asset Management
third-party distribution. This will enhance comparability with
industry peers.
|
Wealth balances1
|
|
|
|
|
|
At
|
||
|
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$bn
|
$bn
|
$bn
|
|
Private
Bank invested assets2
|
452
|
453
|
468
|
|
Retail invested assets
|
521
|
515
|
484
|
|
Invested assets1
|
973
|
968
|
952
|
|
–
of which: The Hongkong and Shanghai Banking Corporation
Limited
|
688
|
682
|
650
|
|
Wealth deposits (Premier and Private Bank)3
|
631
|
609
|
585
|
|
–
of which: The Hongkong and Shanghai Banking Corporation
Limited
|
431
|
408
|
388
|
|
Total reported Wealth balances
|
1,604
|
1,577
|
1,537
|
|
–
of which: The Hongkong and Shanghai Banking Corporation
Limited
|
1,119
|
1,090
|
1,038
|
1
Invested assets are not reported on the Group’s balance
sheet, except where it is deemed that we are acting as principal
rather than agent in our role as investment manager.
2
Private Bank client balances, which comprise invested assets and
customer deposits, were $557bn (2Q26: $554bn, 3Q25:
$566bn).
3
Premier and Private Bank deposits, which include Prestige deposits
in Hang Seng Bank, form part of the total IWPB, Hong Kong and UK
businesses’ customer accounts balance on page 32.
Net
new money
Net new
money (‘NNM‘) represents our net customer inflows from
Private Bank and Retail invested assets and Wealth deposits. It
excludes foreign exchange movements and market and other movements
not relating to client inflows/outflows, which are reported within
‘foreign exchange and others’ and ‘net market
movements’, respectively. This metric excludes net customer
inflows from Asset Management third-party distribution. From 1
January 2026, we disclose NNM as our key Wealth metric, offering
greater comparability to industry peers. We no longer disclose
invested assets as a key metric.
|
Net new money
|
|||
|
|
Quarter ended
|
||
|
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$bn
|
$bn
|
$bn
|
|
Opening
balance
|
1,577
|
1,570
|
1,475
|
|
Net new
money1
|
41
|
25
|
12
|
|
–
of which: net new invested assets
|
17
|
22
|
15
|
|
–
of which: change in deposits
|
24
|
3
|
(3)
|
|
Net
market movements
|
(10)
|
27
|
55
|
|
Foreign
exchange and others2,3
|
(4)
|
(45)
|
(5)
|
|
Closing balance
|
1,604
|
1,577
|
1,537
|
|
|
|
|
|
|
Net new
money – The Hongkong and Shanghai Banking Corporation
Limited
|
38
|
22
|
11
|
|
–
of which: net new invested assets
|
14
|
19
|
13
|
|
–
of which: change in deposits
|
24
|
3
|
(2)
|
1
Clients’ assets are translated at the average quarterly rates
of foreign exchange applicable to the respective quarters, with the
effects of currency translation reported separately.
2
Includes $22bn related to strategic transactions, including the
reclassification as held for sale of Wealth balances associated
with the announced sales of HSBC Life Singapore, our Indonesian
retail banking business and our business in Malta, deposit outflows
following the announced exit from our retail banking business in
Australia, and foreign exchange impacts on Wealth
balances.
3
Includes in 2Q26 cancellation of $25bn of unlisted shares in
custody at 31 March 2026, where conversion occurred during the
second quarter, noting post-conversion shares are subject to
transfer restrictions.
Asset
Management: funds under management
In
addition to HSBC-distributed assets reported under Wealth balances,
Asset Management also manages third-party distributed assets. The
table below shows Asset Management’s funds under management,
including third-party distributed assets.
|
Asset Management – reported funds under
management
|
|||
|
|
Quarter ended
|
||
|
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$bn
|
$bn
|
$bn
|
|
Wealth balances (HSBC distributed assets)
|
298
|
306
|
284
|
|
Third-party distributed assets
|
650
|
622
|
568
|
|
Total funds under management
|
948
|
928
|
852
|
|
Asset Management – invested assets
|
|||
|
|
Quarter ended
|
||
|
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$bn
|
$bn
|
$bn
|
|
Opening balance
|
928
|
863
|
808
|
|
Net new invested assets
|
23
|
25
|
22
|
|
Net market movements, foreign exchange and other
movements
|
(3)
|
40
|
22
|
|
Closing balance
|
948
|
928
|
852
|
|
– of which: The Hongkong and Shanghai Banking Corporation
Limited
|
285
|
279
|
265
|
|
|
Reported and constant currency results – legal
entities
|
Reported and constant currency results – legal
entities
|
||||||||||
|
|
Nine months ended 30 Sep 2026
|
|||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities1
|
Holding
companies,
shared
service
centres and
intra-Group
eliminations
|
Total
|
of which: UK
operating banks2
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
11,054
|
7,878
|
30,155
|
1,884
|
3,854
|
2,741
|
2,075
|
(3,279)
|
56,362
|
15,616
|
|
ECL
|
(701)
|
(660)
|
(1,095)
|
(190)
|
(30)
|
(469)
|
(42)
|
2
|
(3,185)
|
(1,283)
|
|
Operating expenses
|
(4,270)
|
(5,363)
|
(11,916)
|
(992)
|
(2,463)
|
(1,714)
|
(1,146)
|
1,616
|
(26,248)
|
(7,040)
|
|
Share of profit in associates and joint ventures less
impairment
|
1
|
35
|
1,639
|
—
|
—
|
13
|
540
|
(3)
|
2,225
|
36
|
|
Profit before tax
|
6,084
|
1,890
|
18,783
|
702
|
1,361
|
571
|
1,427
|
(1,664)
|
29,154
|
7,329
|
|
Loans and advances to external customers (net)
|
327,928
|
98,776
|
492,263
|
25,986
|
56,622
|
24,297
|
3,986
|
—
|
1,029,858
|
371,902
|
|
Customer
accounts
|
373,218
|
326,220
|
966,543
|
35,915
|
96,239
|
27,249
|
11,071
|
346
|
1,836,801
|
573,235
|
1
Includes the results of entities located in Türkiye, Egypt and
Saudi Arabia (including our share of the results of SAB), which do
not consolidate into HSBC Bank Middle East Limited. These entities
had an aggregated impact on Group reported profit before tax of
$1.1bn.
2 UK
operating banks comprises our ring-fenced bank, HSBC UK Bank plc,
and our UK non-ring-fenced bank in HSBC Bank plc.
|
Notable items – legal entities
|
||||||||||
|
|
Nine months ended 30 Sep 2026
|
|||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding
companies,
shared
service
centres and
intra-Group
eliminations
|
Total
|
of which: UK operating banks
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
(234)
|
(2)
|
—
|
1
|
—
|
—
|
(251)
|
(486)
|
6
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
(97)
|
(205)
|
—
|
(4)
|
—
|
(5)
|
(7)
|
(318)
|
(17)
|
|
Restructuring
and other related costs2
|
(103)
|
(62)
|
(153)
|
(11)
|
(32)
|
(65)
|
(10)
|
(22)
|
(458)
|
(140)
|
1
Amounts in 9M26 include $0.2bn from the recycling of foreign
currency translation reserve losses arising on completion of the
sale of our UK life insurance business, HSBC Life (UK) Limited,
$0.3bn of disposal losses recognised upon the classification as
‘held for sale’ of HSBC Continental Europe’s
shareholding in HSBC Bank Malta plc, and disposal losses relating
to HSBC Australia’s portfolios of home and personal loans and
credit cards, which together with related restructuring costs and
write-downs reported in operating expenses, totalled $0.2bn in
3Q26.
2
Amounts relate to organisational simplification provisions
recognised in 2026.
|
Reconciliation of reported results to constant currency results
– legal entities
|
||||||||||
|
|
Nine months ended 30 Sep 2025
|
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other
trading entities1
|
Holding companies, shared service centres and intra-group
eliminations
|
Total
|
of which: UK operating banks
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
10,202
|
7,799
|
26,479
|
1,899
|
3,527
|
2,568
|
1,833
|
(2,397)
|
51,910
|
14,206
|
|
–
Currency translation
|
233
|
241
|
(7)
|
—
|
—
|
308
|
(46)
|
(70)
|
659
|
336
|
|
–
Constant currency
|
10,435
|
8,040
|
26,472
|
1,899
|
3,527
|
2,876
|
1,787
|
(2,467)
|
52,569
|
14,542
|
|
ECL
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(609)
|
(123)
|
(1,208)
|
(163)
|
(169)
|
(584)
|
(22)
|
(71)
|
(2,949)
|
(636)
|
|
–
Currency translation
|
(13)
|
(5)
|
4
|
—
|
—
|
(70)
|
1
|
1
|
(82)
|
(13)
|
|
–
Constant currency
|
(622)
|
(128)
|
(1,204)
|
(163)
|
(169)
|
(654)
|
(21)
|
(70)
|
(3,031)
|
(649)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(4,146)
|
(7,033)
|
(11,100)
|
(965)
|
(2,502)
|
(1,469)
|
(1,044)
|
1,161
|
(27,098)
|
(8,439)
|
|
–
Currency translation
|
(95)
|
(166)
|
(55)
|
—
|
—
|
(176)
|
23
|
62
|
(407)
|
(161)
|
|
–
Constant currency
|
(4,241)
|
(7,199)
|
(11,155)
|
(965)
|
(2,502)
|
(1,645)
|
(1,021)
|
1,223
|
(27,505)
|
(8,600)
|
|
Share of profit/(loss) in associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
—
|
60
|
664
|
—
|
—
|
8
|
513
|
(3)
|
1,242
|
60
|
|
–
Currency translation
|
—
|
—
|
27
|
—
|
—
|
1
|
(1)
|
1
|
28
|
—
|
|
–
Constant currency
|
—
|
60
|
691
|
—
|
—
|
9
|
512
|
(2)
|
1,270
|
60
|
|
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
5,447
|
703
|
14,835
|
771
|
856
|
523
|
1,280
|
(1,310)
|
23,105
|
5,191
|
|
–
Currency translation
|
125
|
70
|
(31)
|
—
|
—
|
63
|
(23)
|
(6)
|
198
|
162
|
|
–
Constant currency
|
5,572
|
773
|
14,804
|
771
|
856
|
586
|
1,257
|
(1,316)
|
23,303
|
5,353
|
|
Loans and advances to external customers (net)
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
305,503
|
108,308
|
460,790
|
22,835
|
56,528
|
25,113
|
3,809
|
—
|
982,886
|
350,569
|
|
–
Currency translation
|
(3,817)
|
(2,633)
|
784
|
(7)
|
—
|
478
|
(307)
|
—
|
(5,502)
|
(4,380)
|
|
–
Constant currency
|
301,686
|
105,675
|
461,574
|
22,828
|
56,528
|
25,591
|
3,502
|
—
|
977,384
|
346,189
|
|
Customer accounts
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
368,585
|
309,673
|
882,380
|
39,935
|
99,160
|
27,235
|
10,262
|
17
|
1,737,247
|
559,499
|
|
–
Currency translation
|
(4,606)
|
(5,889)
|
(1,521)
|
(22)
|
—
|
519
|
(959)
|
—
|
(12,478)
|
(6,992)
|
|
–
Constant currency
|
363,979
|
303,784
|
880,859
|
39,913
|
99,160
|
27,754
|
9,303
|
17
|
1,724,769
|
552,507
|
1 Includes
the results of entities located in Türkiye, Egypt and Saudi
Arabia (including our share of the results of SAB), which do not
consolidate into HSBC Bank Middle East Limited. These entities had
an aggregated impact on Group reported profit before tax of $1.1bn
and constant currency profit before tax of $1.1bn.
|
Notable items – legal entities (continued)
|
||||||||||
|
|
Nine months ended 30 Sep 2025
|
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-group
eliminations
|
Total
|
of which: UK operating banks
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
(160)
|
—
|
(1)
|
—
|
—
|
—
|
(122)
|
(283)
|
(66)
|
|
Di)lution
loss of interest in BoCom associate2
|
—
|
—
|
(1,138)
|
—
|
—
|
—
|
—
|
34
|
(1,104)
|
—
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
1
|
(259)
|
(22)
|
(13)
|
(20)
|
—
|
—
|
(32)
|
(345)
|
(23)
|
|
Restructuring
and other related costs3
|
(107)
|
(239)
|
(199)
|
(21)
|
(54)
|
(29)
|
(27)
|
(97)
|
(773)
|
(161)
|
|
Legal
provisions4
|
—
|
(1,421)
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,421)
|
(1,415)
|
|
Impairment
loss of interest in BoCom associate2
|
—
|
—
|
(1,000)
|
—
|
—
|
—
|
—
|
—
|
(1,000)
|
—
|
1
Includes a $0.1bn fair value loss on Galicia‘s ADRs received
as purchase consideration from the sale of our business in
Argentina, which were disposed of in 2Q25.
2
Includes a loss of $1.1bn inclusive of reserves recycling as a
result of the dilution of our shareholding in BoCom. We have also
recognised a $1.0bn impairment loss following an impairment test on
the carrying value of the Group’s investment in BoCom in
‘Impairment loss of interest in BoCom
associate’.
3
Amounts include organisational simplification provision recognised
in 2025.
4
Includes a $1.1bn provision recognised in connection with a claim
brought by Herald Fund SPC in the Luxembourg District Court,
relating to the Bernard L. Madoff Investment Securities LLC fraud
and a $0.3bn provision recognised in connection with certain
historical trading activities in HSBC Bank plc.
|
Reported and constant currency results – legal
entities
|
|||||||||
|
|
Quarter ended 30 Sep 2026
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities1
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
3,794
|
2,585
|
9,884
|
624
|
1,258
|
873
|
639
|
(1,037)
|
18,620
|
|
ECL
|
(183)
|
(118)
|
(297)
|
(65)
|
(2)
|
(154
|
(14)
|
1
|
(832)
|
|
Operating expenses
|
(1,428)
|
(1,758)
|
(4,143)
|
(331)
|
(830)
|
(557)
|
(375)
|
600
|
(8,822)
|
|
Share of profit/(loss) in associates and joint
ventures
|
1
|
7
|
442
|
—
|
—
|
4
|
213
|
(1)
|
666
|
|
Profit/(loss) before tax
|
2,184
|
716
|
5,886
|
228
|
426
|
166
|
463
|
(437)
|
9,632
|
|
Loans
and advances to external customers (net)
|
327,928
|
98,776
|
492,263
|
25,986
|
56,622
|
24,297
|
3,986
|
—
|
1,029,858
|
|
External
customer accounts
|
373,218
|
326,220
|
966,543
|
35,915
|
96,239
|
27,249
|
11,071
|
346
|
1,836,801
|
1
Includes the results of entities located in Türkiye, Egypt and
Saudi Arabia (including our share of the results of SAB), which do
not consolidate into HSBC Bank Middle East Limited. These entities
had an aggregated impact on Group reported profit before tax of
$0.4bn.
|
Notable items – legal entities
|
|||||||||
|
|
Quarter ended 30 Sep 2026
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
30
|
(54)
|
—
|
1
|
—
|
—
|
(37)
|
(60)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Restructuring
and other related costs2
|
(44)
|
(43)
|
(57)
|
(4)
|
(10)
|
(24)
|
(3)
|
45
|
(140)
|
1
Amounts in 3Q26 include disposal losses relating to HSBC
Australia’s portfolios of home and personal loans and credit
cards, which together with related restructuring costs and
write-downs reported in operating expenses, totalled
$0.2bn.
2
Amounts relate to organisational simplification provisions
recognised in 3Q26.
|
Reconciliation of reported results to constant currency results
– legal entities
|
|||||||||
|
|
Quarter
ended 30 Jun 2026
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other
trading entities1
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
3,638
|
2,757
|
10,144
|
623
|
1,347
|
895
|
758
|
(1,044)
|
19,118
|
|
–
Currency translation
|
3
|
(13)
|
(10)
|
—
|
—
|
5
|
(2)
|
(3)
|
(20)
|
|
–
Constant currency
|
3,641
|
2,744
|
10,134
|
623
|
1,347
|
900
|
756
|
(1,047)
|
19,098
|
|
ECL
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(310)
|
(86)
|
(486)
|
(32)
|
22
|
(165)
|
4
|
1
|
(1,052)
|
|
–
Currency translation
|
—
|
—
|
—
|
1
|
—
|
—
|
—
|
(1)
|
—
|
|
–
Constant currency
|
(310)
|
(86)
|
(486)
|
(31)
|
22
|
(165)
|
4
|
—
|
(1,052)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(1,390)
|
(1,796)
|
(3,951)
|
(336)
|
(829)
|
(615)
|
(395)
|
607
|
(8,705)
|
|
–
Currency translation
|
(1)
|
10
|
4
|
—
|
—
|
(4)
|
4
|
2
|
15
|
|
–
Constant currency
|
(1,391)
|
(1,786)
|
(3,947)
|
(336)
|
(829)
|
(619)
|
(391)
|
609
|
(8,690)
|
|
Share
of profit/(loss) in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
—
|
10
|
605
|
—
|
—
|
3
|
167
|
—
|
785
|
|
–
Currency translation
|
—
|
—
|
6
|
—
|
—
|
—
|
(1)
|
—
|
5
|
|
–
Constant currency
|
—
|
10
|
611
|
—
|
—
|
3
|
166
|
—
|
790
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
1,938
|
885
|
6,312
|
255
|
540
|
118
|
534
|
(436)
|
10,146
|
|
–
Currency translation
|
2
|
(3)
|
—
|
1
|
—
|
1
|
1
|
(2)
|
—
|
|
–
Constant currency
|
1,940
|
882
|
6,312
|
256
|
540
|
119
|
535
|
(438)
|
10,146
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
317,625
|
103,045
|
492,522
|
24,921
|
55,360
|
24,602
|
4,030
|
—
|
1,022,105
|
|
–
Currency translation
|
816
|
(350)
|
1,502
|
(1)
|
—
|
(746)
|
(150)
|
—
|
1,071
|
|
–
Constant currency
|
318,441
|
102,695
|
494,024
|
24,920
|
55,360
|
23,856
|
3,880
|
—
|
1,023,176
|
|
External
customer accounts
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
373,493
|
328,018
|
944,892
|
39,074
|
102,418
|
28,522
|
11,188
|
98
|
1,827,703
|
|
–
Currency translation
|
959
|
(257)
|
3,320
|
(2)
|
—
|
(865)
|
(547)
|
(2)
|
2,606
|
|
–
Constant currency
|
374,452
|
327,761
|
948,212
|
39,072
|
102,418
|
27,657
|
10,641
|
96
|
1,830,309
|
1
Includes the results of entities located in Türkiye, Egypt and
Saudi Arabia (including our share of the results of SAB), which do
not consolidate into HSBC Bank Middle East Limited. These entities
had an aggregated impact on Group reported profit before tax of
$0.3bn and constant currency profit before tax of
$0.3bn.
|
Notable items – legal entities (continued)
|
|||||||||
|
|
Quarter
ended 30 Jun 2026
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
31
|
52
|
—
|
—
|
—
|
—
|
(8)
|
75
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
—
|
(26)
|
(43)
|
—
|
(1)
|
—
|
(2)
|
(7)
|
(79)
|
|
Restructuring
and other related costs1
|
(37)
|
(13)
|
(66)
|
(5)
|
(15)
|
(27)
|
(6)
|
(21)
|
(190)
|
1
Amounts relate to organisational simplification provisions
recognised in 2Q26.
|
Reconciliation of reported results to constant currency results
– legal entities (continued)
|
|||||||||
|
|
Quarter
ended 30 Sep 2025
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other
trading entities1
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
3,559
|
2,441
|
9,140
|
645
|
1,208
|
903
|
666
|
(774)
|
17,788
|
|
–
Currency translation
|
(11)
|
(15)
|
(14)
|
(1)
|
—
|
71
|
(26)
|
(34)
|
(30)
|
|
–
Constant currency
|
3,548
|
2,426
|
9,126
|
644
|
1,208
|
974
|
640
|
(808)
|
17,758
|
|
ECL
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(269)
|
(24)
|
(298)
|
(115)
|
(19)
|
(201)
|
(9)
|
(73)
|
(1,008)
|
|
–
Currency translation
|
—
|
—
|
5
|
—
|
—
|
(16)
|
—
|
3
|
(8)
|
|
–
Constant currency
|
(269)
|
(24)
|
(293)
|
(115)
|
(19)
|
(217)
|
(9)
|
(70)
|
(1,016)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(1,461)
|
(3,227)
|
(3,797)
|
(327)
|
(823)
|
(511)
|
(358)
|
428
|
(10,076)
|
|
–
Currency translation
|
7
|
18
|
(3)
|
1
|
—
|
(40)
|
14
|
25
|
22
|
|
–
Constant currency
|
(1,454)
|
(3,209)
|
(3,800)
|
(326)
|
(823)
|
(551)
|
(344)
|
453
|
(10,054)
|
|
Share of profit/(loss) in associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
—
|
20
|
406
|
—
|
—
|
2
|
164
|
(1)
|
591
|
|
–
Currency translation
|
—
|
—
|
23
|
—
|
—
|
—
|
—
|
—
|
23
|
|
–
Constant currency
|
—
|
20
|
429
|
—
|
—
|
2
|
164
|
(1)
|
614
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
1,829
|
(790)
|
5,451
|
203
|
366
|
193
|
463
|
(420)
|
7,295
|
|
–
Currency translation
|
(4)
|
3
|
11
|
—
|
—
|
15
|
(12)
|
(6)
|
7
|
|
–
Constant currency
|
1,825
|
(787)
|
5,462
|
203
|
366
|
208
|
451
|
(426)
|
7,302
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
305,503
|
108,308
|
460,790
|
22,835
|
56,528
|
25,113
|
3,809
|
—
|
982,886
|
|
–
Currency translation
|
(3,817)
|
(2,633)
|
784
|
(7)
|
—
|
478
|
(307)
|
—
|
(5,502)
|
|
–
Constant currency
|
301,686
|
105,675
|
461,574
|
22,828
|
56,528
|
25,591
|
3,502
|
—
|
977,384
|
|
External
customer accounts
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
368,585
|
309,673
|
882,380
|
39,935
|
99,160
|
27,235
|
10,262
|
17
|
1,737,247
|
|
–
Currency translation
|
(4,606)
|
(5,889)
|
(1,521)
|
(22)
|
—
|
519
|
(959)
|
—
|
(12,478)
|
|
–
Constant currency
|
363,979
|
303,784
|
880,859
|
39,913
|
99,160
|
27,754
|
9,303
|
17
|
1,724,769
|
1
Includes the results of entities located in Türkiye, Egypt and
Saudi Arabia (including our share of the results of SAB), which do
not consolidate into HSBC Bank Middle East Limited. These entities
had an aggregated impact on Group reported profit before tax of
$0.3bn and constant currency profit before tax of
$0.3bn.
|
Notable items – legal entities (continued)
|
|||||||||
|
|
Quarter
ended 30 Sep 2025
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
(104)
|
—
|
(1)
|
1
|
—
|
—
|
(40)
|
(144)
|
|
Dilution loss of interest in BoCom associate
|
—
|
—
|
(2)
|
—
|
—
|
—
|
—
|
34
|
32
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
—
|
(93)
|
(12)
|
(7)
|
(3)
|
—
|
—
|
(3)
|
(118)
|
|
Restructuring
and other related costs1
|
(25)
|
(30)
|
(61)
|
(8)
|
(14)
|
(14)
|
1
|
(6)
|
(157)
|
|
Legal
provisions2
|
—
|
(1,421)
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,421)
|
1
Amounts relate to organisational simplification provisions
recognised in 3Q25.
2
Includes a $1.1bn provision recognised in connection with a claim
brought by Herald Fund SPC in the Luxembourg District Court,
relating to the Bernard L. Madoff Investment Securities LLC fraud
and a $0.3bn provision recognised in connection with certain
historical trading activities in HSBC Bank plc.
Alternative
performance measures
The
following tables provide the calculation, definition and
reconciliation of alternative performance measures to the closest
reported performance measure. For further details and an
explanation of their basis of preparation, including constant
currency, notable items and material notable items, and the impact
of strategic transactions and hyperinflationary accounting, see
page 5.
|
Alternative performance measure
|
|
|
Definition
|
|
||
|
Reported
revenue excluding notable items
|
|
|
Reported
revenue after excluding notable items reported under
revenue
|
|
||
|
Reported
profit before tax excluding notable items
|
|
|
Reported
profit before tax after excluding notable items reported under
revenue less notable
items
reported under operating expenses
|
|
||
|
Constant
currency revenue excluding notable items
|
|
|
Reported
revenue excluding notable items and the impact of foreign exchange
translation
|
|
||
|
Constant
currency profit before tax excluding notable items
|
|
|
Reported
profit before tax excluding notable items and the impact of foreign
exchange translation
|
|
||
|
Constant
currency revenue excluding notable items and strategic
transactions
|
|
|
Reported
revenue excluding notable items, strategic transactions and the
impact of foreign
exchange
translation
|
|
||
|
Constant
currency profit before tax excluding notable items and strategic
transactions
|
|
|
Reported
profit before tax excluding notable items, strategic transactions
and the impact of
foreign
exchange translation
|
|
||
|
Return on average ordinary shareholders’ equity
(‘RoE’)
|
|
|
Profit attributable to the ordinary shareholders
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Average
ordinary shareholders’ equity
|
|
|||
|
Return
on average tangible equity (‘RoTE‘)
|
|
|
Profit
attributable to the ordinary shareholders, excluding
impairment
of
goodwill and other intangible assets
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Average ordinary shareholders’ equity adjusted for goodwill
and intangibles
|
|
|||
|
Return
on average tangible equity (‘RoTE‘) excluding notable
items
|
|
|
Profit
attributable to the ordinary shareholders, excluding impairment of
goodwill
and
other intangible assets and notable items
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Average
ordinary shareholders’ equity adjusted for
goodwill
and
intangibles
|
|
|||
|
Net asset value per ordinary share
|
|
|
Total
ordinary shareholders’ equity1
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Basic
number of ordinary shares in issue after deducting own shares
held
|
|
|||
|
Tangible net asset value per ordinary share
|
|
|
Tangible
ordinary shareholders’ equity2
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Basic
number of ordinary shares in issue after deducting own shares
held
|
|
|||
|
Banking
net interest income
|
|
|
Banking
net interest income adjusts our reported NII, primarily for the
impact of funding trading
and
fair value activities reported in interest expense and to exclude
third-party insurance NII3
|
|
||
|
Expected
credit losses and other credit impairment charges as a % of average
gross loans and advances to customers
|
|
|
Annualised
constant currency ECL
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Constant
currency average gross loans and advances to customers
|
|
|||
|
Expected
credit losses and other credit impairment charges as a % of average
gross loans and advances to customers, including held for
sale
|
|
|
Annualised
constant currency ECL
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Constant
currency average gross loans and advances to
customers,
including
held for sale
|
|
|||
|
Target basis operating expenses
|
|
|
Reported
operating expenses excluding notable items, foreign
exchange
translation
and other excluded items
|
|
||
|
Basic earnings per share excluding material notable items and
related impacts
|
|
|
Profit
attributable to ordinary shareholders excluding material
notable
items
and related impacts
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares outstanding after
deducting
own
shares held
|
|
|||
1 Total
ordinary shareholders’ equity is total shareholders‘
equity less non-cumulative preference shares and capital
securities.
2
Tangible ordinary shareholders’ equity is total ordinary
shareholders’ equity excluding goodwill and other intangible
assets (net of deferred tax).
3 For
details on the calculation of banking NII, see page 11.
|
Constant currency revenue and profit before tax excluding notable
items and strategic transactions
|
|||||
|
|
Nine
months ended
|
Quarter ended
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
Reported
|
56,362
|
51,910
|
18,620
|
19,118
|
17,788
|
|
Notable
items
|
486
|
1,387
|
60
|
(75
|
112
|
|
Reported
revenue excluding notable items
|
56,848
|
53,297
|
18,680
|
19,043
|
17,900
|
|
Currency
translation1
|
—
|
721
|
—
|
(19
|
(29
|
|
Constant
currency revenue excluding notable items
|
56,848
|
54,018
|
18,680
|
19,024
|
17,871
|
|
Constant
currency impact of strategic transactions (distorting impact of
operating results between periods)2
|
—
|
(558
|
—
|
(19
|
(217
|
|
Constant currency revenue excluding notable items and strategic
transactions
|
56,848
|
53,460
|
18,680
|
19,005
|
17,654
|
|
Profit before tax
|
|
|
|
|
|
|
Reported
|
29,154
|
23,105
|
9,632
|
10,146
|
7,295
|
|
Notable
items
|
1,262
|
4,926
|
389
|
194
|
1,808
|
|
Reported
profit before tax excluding notable items
|
30,416
|
28,031
|
10,021
|
10,340
|
9,103
|
|
Currency
translation1
|
—
|
341
|
—
|
(1
|
3
|
|
Constant
currency profit before tax excluding notable items
|
30,416
|
28,372
|
10,021
|
10,339
|
9,106
|
|
Constant
currency impact of strategic transactions (distorting impact of
operating results between periods)2
|
—
|
(306
|
—
|
(16
|
(132
|
|
Constant currency profit before tax excluding notable items and
strategic transactions
|
30,416
|
28,066
|
10,021
|
10,323
|
8,974
|
1
Currency translation on the reported balance excluding currency
translation on notable items.
2 For
more details of strategic transactions, see ‘Strategic
transactions supplementary analysis‘ on page 30.
|
Return on average ordinary shareholders‘ equity, return on
average tangible equity and return on average tangible equity
excluding notable items
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Profit after tax
|
|
|
|
|
|
|
Profit
attributable to the ordinary shareholders of the parent
company
|
21,716
|
16,383
|
7,090
|
7,688
|
4,873
|
|
Impairment of goodwill and other intangible assets (net of
tax)
|
118
|
64
|
82
|
6
|
40
|
|
Profit attributable to the ordinary shareholders, excluding
goodwill and other intangible assets impairment
|
21,834
|
16,447
|
7,172
|
7,694
|
4,913
|
|
Impact of notable items
|
971
|
4,441
|
219
|
151
|
1,727
|
|
Profit attributable to the ordinary shareholders, excluding
goodwill, other intangible assets impairment and notable
items
|
22,805
|
20,888
|
7,391
|
7,845
|
6,640
|
|
Equity
|
|
|
|
|
|
|
Average
total shareholders‘ equity
|
196,900
|
189,942
|
196,278
|
196,751
|
191,992
|
|
Effect
of average preference shares and other equity
instruments
|
(22,261)
|
(19,805)
|
(23,057)
|
(22,960)
|
(20,716)
|
|
Average ordinary shareholders’ equity
|
174,639
|
170,137
|
173,221
|
173,791
|
171,276
|
|
Effect of goodwill and other intangibles (net of deferred
tax)
|
(12,356)
|
(11,961)
|
(12,398)
|
(12,297)
|
(12,272)
|
|
Average tangible equity
|
162,283
|
158,176
|
160,823
|
161,494
|
159,004
|
|
Ratio
|
%
|
%
|
%
|
%
|
%
|
|
Return on average ordinary shareholders’ equity
(annualised)
|
16.6
|
12.9
|
16.2
|
17.7
|
11.3
|
|
Return on average tangible equity (annualised)
|
18.0
|
13.9
|
17.7
|
19.1
|
12.3
|
|
Return
on average tangible equity excluding notable items
(annualised)
|
18.8
|
17.7
|
18.2
|
19.5
|
16.6
|
To
better align our RoTE excluding notable items measure with market
practice, from our 2025 full-year results we no longer adjust the
‘average tangible equity‘ for the post-tax impact of
notable items in each period. Comparatives have been
re-presented.
|
Return on average tangible equity by business segment
|
|
|
|
|
|
||||||||||
|
|
Nine months ended 30 Sep 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Profit before tax
|
7,703
|
5,174
|
10,855
|
3,741
|
1,681
|
29,154
|
|
Tax expense
|
(1,357)
|
(1,485)
|
(2,383)
|
(688)
|
(349)
|
(6,262)
|
|
Profit after tax
|
6,346
|
3,689
|
8,472
|
3,053
|
1,332
|
22,892
|
|
Less attributable to: preference shareholders, other equity
holders, non-controlling interests
|
(227)
|
(183)
|
(472)
|
(105)
|
(189)
|
(1,176)
|
|
Profit attributable to ordinary shareholders of the parent
company
|
6,119
|
3,506
|
8,000
|
2,948
|
1,143
|
21,716
|
|
Other adjustments
|
169
|
296
|
(117)
|
(38)
|
(192)
|
118
|
|
Profit attributable to ordinary shareholders
|
6,288
|
3,802
|
7,883
|
2,910
|
951
|
21,834
|
|
Impact of notable items
|
6
|
24
|
40
|
329
|
572
|
971
|
|
Profit attributable to ordinary shareholders excluding notable
items
|
6,294
|
3,826
|
7,923
|
3,239
|
1,523
|
22,805
|
|
Average tangible shareholders’ equity
|
19,397
|
23,879
|
58,463
|
16,603
|
43,941
|
162,283
|
|
RoTE (%) (annualised)
|
43.3
|
21.3
|
18.0
|
23.4
|
2.9
|
18.0
|
|
RoTE (%), excluding notable items (annualised)
|
43.4
|
21.4
|
18.1
|
26.1
|
4.6
|
18.8
|
|
|
Nine months ended 30 Sep 2025
|
|||||
|
Profit before tax
|
6,904
|
4,661
|
9,392
|
3,384
|
(1,236)
|
23,105
|
|
Tax expense
|
(1,286)
|
(1,287)
|
(2,067)
|
(724)
|
203
|
(5,161)
|
|
Profit after tax
|
5,618
|
3,374
|
7,325
|
2,660
|
(1,033)
|
17,944
|
|
Less attributable to: preference shareholders, other equity
holders, non-controlling interests
|
(655)
|
(158)
|
(401)
|
(182)
|
(165
|
(1,561)
|
|
Profit attributable to ordinary shareholders of the parent
company
|
4,963
|
3,216
|
6,924
|
2,478
|
(1,198)
|
16,383
|
|
Other adjustments
|
253
|
165
|
(129)
|
(34)
|
(191)
|
64
|
|
Profit attributable to ordinary shareholders
|
5,216
|
3,381
|
6,795
|
2,444
|
(1,389)
|
16,447
|
|
Impact of notable items
|
7
|
44
|
596
|
261
|
3,533
|
4,441
|
|
Profit attributable to ordinary shareholders excluding notable
items
|
5,223
|
3,425
|
7,391
|
2,705
|
2,144
|
20,888
|
|
Average tangible shareholders’ equity
|
20,589
|
20,366
|
56,066
|
18,325
|
42,830
|
158,176
|
|
RoTE (%) (annualised)
|
33.9
|
22.2
|
16.2
|
17.8
|
(4.3)
|
13.9
|
|
RoTE (%), excluding notable items (annualised)
|
33.9
|
22.5
|
17.6
|
19.7
|
6.7
|
17.7
|
|
Net asset value and tangible net asset value per ordinary
share
|
|
|
At
|
||
|
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
|
Total shareholders’ equity
|
195,875
|
196,682
|
191,430
|
|
Preference shares and other equity instruments
|
(22,407
|
(23,708
|
(20,716
|
|
Total ordinary shareholders’ equity
|
173,468
|
172,974
|
170,714
|
|
Goodwill and intangible assets (net of deferred tax)
|
(12,474
|
(12,322
|
(12,263
|
|
Tangible ordinary shareholders’ equity
|
160,994
|
160,652
|
158,451
|
|
Basic number of $0.50 ordinary shares outstanding, after deducting
own shares held (millions)
|
17,111
|
17,164
|
17,183
|
|
Value per share
|
$
|
$
|
$
|
|
Net asset value per ordinary share
|
10.14
|
10.08
|
9.94
|
|
Tangible net asset value per ordinary share
|
9.41
|
9.36
|
9.22
|
|
|
|
|
|
|
ECL as a % of average gross loans and advances to customers, and
ECL as a % of average gross loans and advances to customers,
including held for sale
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Expected
credit losses and other credit impairment charges
(‘ECL‘)
|
(3,185)
|
(2,949)
|
(832)
|
(1,052)
|
(1,008)
|
|
Currency translation
|
—
|
(82
|
—
|
—
|
(8)
|
|
Constant currency
|
(3,185)
|
(3,031)
|
(832)
|
(1,052)
|
(1,016)
|
|
Average gross loans and advances to customers
|
1,021,835
|
970,109
|
1,037,478
|
1,023,571
|
992,630
|
|
Currency translation
|
(889)
|
10,294
|
515
|
1,037
|
(7,802)
|
|
Constant currency
|
1,020,946
|
980,403
|
1,037,993
|
1,024,608
|
984,828
|
|
Average gross loans and advances to customers, including held for
sale
|
1,032,916
|
971,947
|
1,055,082
|
1,029,319
|
995,193
|
|
Currency translation
|
(919)
|
10,358
|
506
|
1,003
|
(7,793)
|
|
Constant currency
|
1,031,997
|
982,305
|
1,055,588
|
1,030,322
|
987,400
|
|
|
|
|
|
|
|
|
Ratios
|
%
|
%
|
%
|
%
|
%
|
|
Expected
credit losses and other credit impairment charges (annualised) as a
% of average gross loans and advances to customers (%)
|
0.42
|
0.41
|
0.32
|
0.41
|
0.41
|
|
Expected
credit losses and other credit impairment charges (annualised) as a
% of average gross loans and advances to customers, including held
for sale (%)
|
0.41
|
0.41
|
0.31
|
0.41
|
0.41
|
|
Target basis operating expenses
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Reported operating expenses
|
26,248
|
27,098
|
8,822
|
8,705
|
10,076
|
|
Notable items
|
(776
|
(2,539
|
(329
|
(269
|
(1,696
|
|
–
disposals, wind-downs, acquisitions and related costs
|
(318
|
(345
|
(189
|
(79
|
(118
|
|
–
restructuring and other related costs1
|
(458
|
(773
|
(140
|
(190
|
(157
|
|
–
legal provisions2
|
—
|
(1,421
|
—
|
—
|
(1,421
|
|
Currency
translation3
|
—
|
393
|
—
|
(13
|
(17
|
|
Excluding
the impact of retranslating prior period costs of hyperinflationary
economies at constant currency foreign exchange rate
|
—
|
28
|
—
|
3
|
10
|
|
Target basis operating expenses
|
25,472
|
24,980
|
8,493
|
8,426
|
8,373
|
1
Amounts include restructuring provisions related to the
organisational simplification.
2
During 3Q25, a $1.1bn provision was recognised in connection with a
claim brought by Herald Fund SPC in the Luxembourg District Court,
relating to the Bernard L. Madoff Investment Securities LLC fraud
and a $0.3bn provision was recognised in connection with certain
historical trading activities in HSBC Bank plc.
3
Currency translation on reported operating expenses, excluding
currency translation on notable items.
|
Basic earnings per share excluding material notable items and
related impacts
|
|
|
Nine months ended
|
Quarter ended
|
||||||||||
|
|
30 Sep 2026
|
30 Sep 2025
|
30 Sep 2026
|
30 Jun 2026
|
30 Sep 2025
|
|||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||
|
Profit attributable to shareholders of company
|
22,811
|
17,341
|
7,552
|
7,914
|
5,284
|
|||||||
|
Coupon
payable on capital securities classified as equity
|
(1,095)
|
(958)
|
(462)
|
(226)
|
(411)
|
|||||||
|
Profit attributable to ordinary shareholders of
company
|
21,716
|
16,383
|
7,090
|
7,688
|
4,873
|
|||||||
|
Dilution
and impairment losses of interest in associate
|
—
|
1,956
|
—
|
—
|
(32)
|
|||||||
|
Legal provisions1
|
—
|
1,100
|
—
|
—
|
1,100
|
|||||||
|
Impact of disposals, wind-downs, acquisitions and related
costs2
|
590
|
507
|
42
|
12
|
224
|
|||||||
|
Profit attributable to ordinary shareholders of company excluding
material notable items and related impacts
|
22,306
|
19,946
|
7,132
|
7,700
|
6,165
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
Number of shares
|
|
|
|
|
|
|
|
|
|
|||
|
Weighted average basic number of ordinary shares after deducting
own shares held (millions)
|
17,146
|
17,529
|
17,145
|
17,163
|
17,297
|
|||||||
|
Basic earnings per share ($)
|
1.27
|
0.93
|
0.41
|
0.45
|
0.28
|
|||||||
|
Basic earnings per share excluding material notable items and
related impacts ($)
|
1.30
|
1.14
|
0.42
|
0.45
|
0.36
|
|||||||
1
Amounts in 3Q25 include a $1.1bn provision that was recognised in
connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud.
2
Amounts in 9M26 include $0.2bn from the recycling of foreign
currency translation reserve losses arising on completion of the
sale of our UK life insurance business, HSBC Life (UK) Limited,
$0.3bn of disposal losses recognised upon the ‘held for
sale‘ classification of HSBC Continental Europe’s
shareholding in HSBC Bank Malta plc, a $0.1bn loss inclusive of
related impacts from the exit, and wind-down, of our retail banking
business in Australia, offset by a $0.1bn impact relating to the
sale of our Singapore insurance business. Amounts in 9M25 include a
$0.2bn impact from the sale of our French and UK life insurance
businesses, a $0.1bn impact from the sale of our business in
Argentina and a $0.1bn impact from the sale of our private banking,
custody and fund administration businesses in Germany.
Risk
|
|
Managing risk
We
maintain a proactive approach to managing our exposure to economic,
financial and geopolitical risks, supported by continuous
monitoring and review. Developments in these areas have
historically affected, and may in the future adversely affect,
HSBC’s customers, operations and overall risk profile,
including financial risks.
Geopolitical
developments, particularly the conflict in the Middle East, remain
a source of uncertainty and have resulted in periodic financial
market volatility, higher and more volatile oil and gas prices, and
supply chain disruption. This environment is contributing to higher
inflation with associated upward pressure on interest rates, while
increasing the risk of a slowdown in global growth. For some
countries, particularly those in the Middle East, where oil and gas
output has been disrupted and travel, logistics and other sectors
are affected, the impact on growth is already significant. Supply
chain disruptions have materialised in some key trade corridors and
could have long-lasting implications for the direction of trade,
and for energy, military and economic security. We keep
developments under close review with a focus on potential impacts
on our Gulf operations, as well as our customers and
suppliers.
We also
continue to monitor the Russia-Ukraine war, including hybrid
attacks across Europe attributed to Russia, and any indication of
other potential military action or conflict elsewhere. Heightened
strategic competition between the US and China, including
cross-border investment restrictions, is also affecting the
configuration of global supply chains, which may in turn affect the
Group’s operations.
Sanctions
and restrictions on trade and investment are continually evolving
in response to geopolitical events and may adversely affect the
Group, our customers and the markets in which the Group operates.
These factors may result in increased legal, regulatory,
reputational and market risks, and a more complex operating
environment.
Trade
and tariff policies remain a source of uncertainty for businesses
and consumers. Changes to tariff rates, including sector-specific
measures, could reduce capital investment and consumer spending,
disrupt supply chains and dampen global trade growth. While the
reconfiguration of trade and supply routes may create new
opportunities for investment and growth, it could also have an
adverse impact on the Group and our customers.
We
remain subject to interest rate risk, which can affect net interest
income, the fair value of our assets and liabilities, and overall
financial performance. Changes in inflation expectations, energy
prices, fiscal policy and geopolitical developments may increase
interest rate volatility by altering market expectations for the
timing and pace of interest rate changes by major central banks. As
inflationary pressures have increased, major central banks have
adopted a more restrictive policy stance. At the beginning of 2026,
markets expected both the US Federal Reserve and the Bank of
England (‘BoE’) to reduce policy rates. However, in the
year to date, the US Federal Reserve has raised its interest rate
once, while the BoE has left its policy rate
unchanged.
Higher
interest rates, or a prolonged period of restrictive policy, could
reduce loan demand across key consumer and business segments,
weaken credit quality and weigh on real estate and other asset
prices. By contrast, lower interest rates, or faster than expected
policy easing, could put downward pressure on net interest margins
and adversely affect profitability. Interest rate uncertainty may
contribute to broader market volatility, affecting funding costs,
hedging effectiveness and the valuation of financial
instruments.
Exchange
rate volatility may also affect our risk exposure through
mark-to-market changes in trading positions and the translation
effects of currency movements.
Our
risk profile may be influenced by fiscal policies, public deficits
and levels of sovereign indebtedness. In many of our major markets,
government debt has increased, reflecting higher social welfare
commitments and expenditure on defence, energy security and climate
transition. In the year to date, yields on long-term government
debt have increased across major economies, amid concerns over
fiscal outlooks and increased debt issuance. Higher sovereign
borrowing costs could constrain fiscal capacity and adversely
affect debt sustainability, particularly for highly indebted
sovereigns. Elevated issuance and refinancing needs, together with
changes in investor demand and market liquidity, could increase
sovereign funding pressures. The growing role of non-bank financial
institutions in holding and intermediating sovereign debt may
amplify the transmission of market volatility, as leveraged
positions can trigger forced sales when yields rise or funding
conditions tighten, impairing liquidity across markets. Higher
yields could also reduce the value of our sovereign bond holdings
and increase private sector borrowing costs, as well as funding and
refinancing risks for our customers and counterparties, with
potentially negative implications for credit quality and market
conditions.
More
broadly, the continued growth of private equity and debt markets,
and their increasing interconnectedness with banks and other
financial institutions, may amplify the transmission of credit,
liquidity and valuation risks across the financial
system.
We
continue to monitor investment and developments in the artificial
intelligence (‘AI’) and technology sectors. While AI
may improve productivity and support growth, there is a risk that
the expected gains will fail to materialise or will take longer
than expected. This could contribute to a disruptive correction to
the valuations of AI and technology-related assets. AI adoption
could also disrupt established business models and labour markets,
potentially increasing unemployment in certain sectors and markets.
These risks could affect HSBC’s risk profile and earnings by
impairing the creditworthiness of borrowers, increasing the
financial vulnerability of customers and decreasing the value of
collateral and other claims.
In Hong
Kong, real estate market conditions continued to stabilise in the
third quarter of 2026. The recovery nevertheless remains uneven,
with improved leasing activity in prime office and retail locations
but higher vacancies, valuation pressure and subdued investor
appetite continuing in non-prime segments. Sentiment in the
residential property market remains resilient. The recent increase
in interest rates and inflationary pressure present a headwind to
the broader recovery. Further increases could weaken sentiment and
trigger a softening of demand.
In the
third quarter of 2026, management adjustments to ECL were applied
to reflect sector or portfolio risks that are not fully captured by
our models. We continue to monitor, and seek to manage, the
potential implications of all the above developments on our
customers and our business.
At
30 September 2026, our CET1 ratio decreased to 13.9% from
14.1% at 30 June 2026, and our liquidity coverage ratio
(‘LCR’) was 132%, down from 134% at 30 June
2026.
←
For further details
of our Central and other economic scenarios, see page 45.
←
For further details
on our CET1 ratio, see ‘Capital risk‘ on page
52.
Credit risk
Summary
of credit risk
At 30
September 2026, gross loans and advances to banks and customers of
$1,146bn increased by $38.0bn on a reported basis compared with
31 December 2025. Gross loans and advances to customers
increased by $42.1bn and gross loans and advances to banks
decreased by $4.1bn. This included total adverse foreign exchange
movements of $6.0bn.
On a
constant currency basis, the increase of $47.7bn in loans and
advances to customers was driven by higher balances in our CIB
business (up $23.1bn), our UK business (up $17.8bn) and in our Hong
Kong business (up $15.3bn). These were partly offset by an $8.5bn
decrease in our IWPB business.
The
increase in CIB was driven by higher balances in our entities in
Asia, the US and the Middle East across several
sectors.
In our
UK business, the increase was primarily driven by higher corporate
and commercial exposures in addition to mortgage
growth.
The
increase in our Hong Kong business was primarily driven by higher
balances across other personal lending and corporate and commercial
exposures.
The
decrease in IWPB was driven by the classification to held for sale
of loans from the planned sale of our portfolios of home and
personal loans, and credit card balances in Australia. This was
partly offset by growth in our entities in India and Hong
Kong.
At 30
September 2026, the allowance for ECL of $11.9bn increased by
$0.7bn compared with 31 December 2025, including write-offs of
$2.8bn and favourable foreign exchange movements of $0.1bn. The
$11.9bn allowance comprised $11.5bn in respect of assets held at
amortised cost and $0.4bn in respect of loan commitments and
financial guarantees.
On a
constant currency basis, the allowance for ECL in relation to loans
and advances to customers increased by $0.8bn. This was
attributable to:
–
a $0.8bn increase
in allowance for ECL on wholesale loans and advances to customers,
which included a $0.7bn increase in stage 3 and a $0.1bn increase
in stages 1 and 2; and
–
a broadly unchanged
allowance for ECL on personal loans and advances to customers
across all stages.
The ECL
charge for the first nine months of 2026 was $3.2bn (9M25: $2.9bn),
inclusive of recoveries. It comprised: $1.1bn in respect of CIB;
$0.8bn in respect of the Hong Kong business; $0.7bn in respect of
the UK business; and $0.6bn in respect of IWPB.
←
For further details
on ECL charges in each of our business segments, see pages
15
and 43.
The
9M26 charge primarily reflected a $0.5bn fraud-related, secondary,
securitisation exposure with a financial sponsor in the UK in our
CIB business, as well as an increase in allowances to reflect
heightened uncertainty and a deterioration in the forward economic
outlook due to the ongoing conflict in the Middle East. The net ECL
charge in the Hong Kong CRE sector was $0.3bn in 9M26.
|
Summary of financial instruments to which the impairment
requirements in IFRS 9 are applied – by business segment at
30 September 2026
|
|
|
Gross carrying/nominal amount
|
Allowance for ECL1
|
||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Loans and advances to customers at amortised cost
|
241,483
|
316,323
|
339,876
|
143,350
|
177
|
1,041,209
|
(4,276)
|
(2,132)
|
(3,430
|
(1,477)
|
(36)
|
(11,351)
|
|
Loans and advances to banks at amortised cost
|
15,190
|
4,735
|
67,816
|
15,736
|
864
|
104,341
|
(1)
|
—
|
(8)
|
(2)
|
(1)
|
(12)
|
|
Other financial assets measured at amortised cost
|
75,268
|
101,098
|
644,835
|
97,605
|
53,493
|
972,299
|
(12)
|
(12)
|
(75)
|
(65)
|
—
|
(164)
|
|
–
cash and balances at central banks
|
5,727
|
54,184
|
148,522
|
13,335
|
695
|
222,463
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
Hong Kong Government certificates of indebtedness
|
—
|
—
|
—
|
—
|
45,298
|
45,298
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
reverse repurchase agreements – non-trading
|
6,717
|
15,979
|
268,075
|
5,675
|
—
|
296,446
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
financial investments
|
55,709
|
27,911
|
93,111
|
41,337
|
3,401
|
221,469
|
—
|
(1)
|
(7)
|
(6)
|
—
|
(14)
|
|
– assets held for sale2
|
—
|
—
|
2,293
|
30,432
|
1
|
32,726
|
—
|
—
|
(20)
|
(49)
|
—
|
(69)
|
|
– other assets3
|
7,115
|
3,024
|
132,834
|
6,826
|
4,098
|
153,897
|
(12)
|
(11)
|
(48)
|
(10)
|
—
|
(81)
|
|
Total on-balance sheet
|
331,941
|
422,156
|
1,052,527
|
256,691
|
54,534
|
2,117,849
|
(4,289)
|
(2,144)
|
(3,513)
|
(1,544)
|
(37)
|
(11,527)
|
|
Loan and other credit-related commitments
|
110,499
|
103,795
|
437,896
|
82,045
|
1,042
|
735,277
|
(17)
|
(124)
|
(183)
|
(7)
|
—
|
(331)
|
|
Financial guarantees
|
514
|
1,141
|
15,237
|
1,688
|
—
|
18,580
|
—
|
(14)
|
(38)
|
(1)
|
—
|
(53)
|
|
Total off-balance
sheet4
|
111,013
|
104,936
|
453,133
|
83,733
|
1,042
|
753,857
|
(17)
|
(138)
|
(221)
|
(8)
|
—
|
(384)
|
|
At 30 Sep 2026
|
442,954
|
527,092
|
1,505,660
|
340,424
|
55,576
|
2,871,706
|
(4,306)
|
(2,282)
|
(3,734)
|
(1,552)
|
(37)
|
(11,911)
|
|
|
Fair value
|
Memorandum allowance for
ECL5
|
||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Debt instruments measured at fair value through other comprehensive
income (‘FVOCI‘)
|
132,648
|
21,881
|
173,621
|
48,702
|
16,815
|
393,667
|
(2)
|
(1)
|
(23)
|
(6)
|
—
|
(32)
|
|
Summary of financial instruments to which the impairment
requirements in IFRS 9 are applied – by business segment at
31 December 2025
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Gross carrying/nominal amount
|
Allowance for ECL1
|
||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Loans and advances to customers at amortised cost
|
227,608
|
301,537
|
318,113
|
151,657
|
176
|
999,091
|
(3,878)
|
(1,998)
|
(3,170)
|
(1,610)
|
(36)
|
(10,692)
|
|
Loans and advances to banks at amortised cost
|
11,696
|
7,302
|
67,909
|
16,630
|
4,932
|
108,469
|
—
|
—
|
(4)
|
(2)
|
(1)
|
(7)
|
|
Other financial assets measured at amortised cost
|
57,228
|
101,338
|
605,976
|
59,114
|
66,670
|
890,326
|
(25)
|
(10)
|
(68)
|
(25)
|
(1)
|
(129)
|
|
–
cash and balances at central banks
|
6,531
|
49,542
|
167,889
|
18,174
|
723
|
242,859
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
Hong Kong Government certificates of indebtedness
|
—
|
—
|
—
|
—
|
44,063
|
44,063
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
reverse repurchase agreements – non-trading
|
5,931
|
24,847
|
259,919
|
6,354
|
1,341
|
298,392
|
—
|
—
|
—
|
—
|
—
|
—
|
|
– financial investments
|
38,438
|
23,602
|
74,491
|
28,344
|
17,226
|
182,101
|
(2)
|
(1)
|
(4)
|
(5)
|
—
|
(12)
|
|
– assets held for sale2
|
—
|
14
|
3,229
|
864
|
8
|
4,115
|
—
|
—
|
(18)
|
(9)
|
—
|
(27)
|
|
– other assets3
|
6,328
|
3,333
|
100,448
|
5,378
|
3,309
|
118,796
|
(23)
|
(9)
|
(46)
|
(11)
|
(1)
|
(90)
|
|
Total on-balance sheet
|
296,532
|
410,177
|
991,998
|
227,401
|
71,778
|
1,997,886
|
(3,903)
|
(2,008)
|
(3,242)
|
(1,637)
|
(38)
|
(10,828)
|
|
Loan and other credit-related commitments
|
106,246
|
100,162
|
358,554
|
125,138
|
692
|
690,792
|
(26)
|
(91)
|
(195)
|
(3)
|
—
|
(315)
|
|
Financial guarantees
|
588
|
1,061
|
14,118
|
1,709
|
—
|
17,476
|
(1)
|
(16)
|
(33)
|
(1)
|
—
|
(51)
|
|
Total off-balance sheet4
|
106,834
|
101,223
|
372,672
|
126,847
|
692
|
708,268
|
(27)
|
(107)
|
(228)
|
(4)
|
—
|
(366)
|
|
At 31 Dec 2025
|
403,366
|
511,400
|
1,364,670
|
354,248
|
72,470
|
2,706,154
|
(3,930)
|
(2,115)
|
(3,470)
|
(1,641)
|
(38)
|
(11,194)
|
|
Fair value
|
Memorandum allowance for ECL5
|
|
|
|||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
|
Debt instruments measured at FVOCI
|
130,998
|
27,795
|
174,611
|
48,939
|
1,225
|
383,568
|
(1)
|
—
|
(20)
|
(9)
|
—
|
(30)
|
||
1 The
total ECL is recognised in the loss allowance for the financial
asset unless the total ECL exceeds the gross carrying amount of the
financial asset, in which case the ECL is recognised as a
provision.
2 At 30 September 2026, the gross carrying amount
comprised $30.9bn of loans and advances to customers and banks (31
December 2025: $3.6bn) and $1.8bn of other financial assets at
amortised cost (31 December 2025: $0.5bn). This included the
planned sales of our portfolios of home and personal loans, and
credit card balances in Australia ($25.7bn, 31 December 2025:
Nil), our business in Malta
($4.5bn, 31 December 2025: Nil), our custody business in
Germany ($0.1bn, 31 December 2025: $0.3bn) and completion of the
sale of our businesses in Uruguay (Nil, 31 December 2025: $1.4bn)
and in South Africa (Nil, 31 December 2025: $0.4bn). The
corresponding allowance for ECL comprised $69m of loans and
advances to customers and banks (31 December 2025:
$27m).
3
Includes only those financial instruments that are subject to the
impairment requirements of IFRS 9. ‘Other assets’ as
presented within the summary consolidated balance sheet on page
12
comprises both financial and non-financial assets, including cash
collateral and settlement accounts and items in the course of
collection from other banks.
4
Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
5 Debt
instruments measured at FVOCI continue to be measured at fair value
with the allowance for ECL as a memorandum item. Change in ECL is
recognised in ‘Change in expected credit losses and other
credit impairment charges’ in the income
statement.
|
Change in expected credit losses and other credit impairment
charges by business segment
|
||||||||||||||||||||||||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
||||||||||||||||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||||||||||||
|
Nine months ended 30 Sep 2026
|
(788)
|
(687)
|
(1,110)
|
(600)
|
—
|
(3,185)
|
||||||||||||||||||||
|
Nine months ended 30 Sep 2025
|
(1,161)
|
(599)
|
(465)
|
(657)
|
(67)
|
(2,949)
|
||||||||||||||||||||
Summary of credit risk (excluding debt instruments measured at
FVOCI) by stage distribution and ECL coverage at 30 September
2026
|
|
Gross carrying/nominal
amount1
|
Allowance for ECL
|
ECL coverage %
|
||||||||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
%
|
%
|
%
|
%
|
%
|
|
Loans and advances to customers at amortised cost
|
938,636
|
79,884
|
22,339
|
350
|
1,041,209
|
(1,230)
|
(2,380)
|
(7,658)
|
(83)
|
(11,351)
|
0.1
|
3.0
|
34.3
|
23.7
|
1.1
|
|
Loans and advances to banks at amortised cost
|
103,951
|
389
|
1
|
—
|
104,341
|
(9)
|
(2)
|
(1)
|
—
|
(12)
|
—
|
0.5
|
100.0
|
—
|
—
|
|
Other financial assets measured at amortised cost
|
967,286
|
4,331
|
681
|
1
|
972,299
|
(86)
|
(26)
|
(52)
|
—
|
(164)
|
—
|
0.6
|
7.6
|
—
|
—
|
|
Loan and other credit-related commit-ments
|
716,338
|
17,950
|
984
|
5
|
735,277
|
(144)
|
(97)
|
(90)
|
—
|
(331)
|
—
|
0.5
|
9.1
|
—
|
—
|
|
Financial guarantees
|
16,604
|
1,751
|
225
|
—
|
18,580
|
(6)
|
(10)
|
(37)
|
—
|
(53)
|
—
|
0.6
|
16.4
|
—
|
0.3
|
|
At 30 Sep 2026
|
2,742,815
|
104,305
|
24,230
|
356
|
2,871,706
|
(1,475)
|
(2,515)
|
(7,838)
|
(83)
|
(11,911)
|
0.1
|
2.4
|
32.3
|
23.3
|
0.4
|
|
Summary of credit risk (excluding debt instruments measured at
FVOCI) by stage distribution and ECL coverage at 31 December
2025
|
|||||||||||||||
|
|
Gross
carrying/nominal amount1
|
Allowance for ECL
|
ECL coverage %
|
||||||||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
%
|
%
|
%
|
%
|
%
|
|
Loans and advances to customers at amortised cost
|
893,433
|
80,936
|
24,389
|
333
|
999,091
|
(1,201
|
(2,318
|
(7,097
|
(76)
|
(10,692)
|
0.1
|
2.9
|
29.1
|
22.8
|
1.1
|
|
Loans and advances to banks at amortised cost
|
108,336
|
132
|
1
|
—
|
108,469
|
(4
|
(2
|
(1)
|
—
|
(7)
|
—
|
1.5
|
100.0
|
—
|
—
|
|
Other financial assets measured at amortised cost
|
888,491
|
1,651
|
184
|
—
|
890,326
|
(76
|
(11
|
(42)
|
—
|
(129)
|
—
|
0.7
|
22.8
|
—
|
—
|
|
Loan and other credit-related commit-ments
|
669,648
|
20,488
|
652
|
4
|
690,792
|
(149
|
(97
|
(69)
|
—
|
(315)
|
—
|
0.5
|
10.6
|
—
|
—
|
|
Financial guarantees
|
15,913
|
1,371
|
192
|
—
|
17,476
|
(8
|
(17
|
(26)
|
—
|
(51)
|
0.1
|
1.2
|
13.5
|
—
|
0.3
|
|
At 31
Dec 2025
|
2,575,821
|
104,578
|
25,418
|
337
|
2,706,154
|
(1,438
|
(2,445
|
(7,235)
|
(76)
|
(11,194)
|
0.1
|
2.3
|
28.5
|
22.6
|
0.4
|
1
Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
2
Purchased or originated credit-impaired financial assets
(‘POCI‘).
Measurement
uncertainty and sensitivity analysis of ECL estimates
The
recognition and measurement of ECL involves the use of significant
judgement and estimation. We form multiple scenarios based on
economic forecasts and distributional estimates and apply these to
credit risk models to estimate future credit losses. The results
are then probability-weighted to determine an unbiased ECL
estimate.
Management
assessed the current economic environment, reviewed the latest
economic forecasts and market indicators and discussed key risks
and uncertainties before selecting the economic scenarios and their
probability weightings.
Management
judgemental adjustments are used where modelled allowance for ECL
does not fully reflect the identified risks and related
uncertainty, or to capture significant late-breaking
events.
Methodology
At 30
September 2026, four economic scenarios were used to calculate ECL.
These scenarios were selected to capture the latest economic
expectations and to articulate management‘s view of the range
of risks and potential outcomes.
Of
those four standard scenarios, the Upside, Central and Downside are
drawn from external consensus forecasts, market data and
probability distributions that represent a range of potential
economic outcomes. The fourth scenario, the Downside 2, represents
management’s view of severe downside risks in the tail of the
distribution.
In the
third quarter of 2026, downside scenarios were calibrated as global
energy supply shocks, where an escalation in geopolitical tensions
and a significant rise in oil prices cause inflation and interest
rates to rise, leading to a downturn in economic activity
subsequently.
The
scenarios are refreshed and updated with the latest economic
forecasts and distributional estimates every quarter.
Description of economic scenarios
The
consensus Central scenario reflects a baseline expectation that
includes the effects of the rise in energy prices, inflation and
higher interest rate expectations. The forecast assumes that growth
across most of our major markets remains resilient to these factors
and, while it slows, growth remains close to its trend rate. The
main exception is the UAE, where the effect of the conflict in the
Middle East on tourism, logistics and output is expected to have
pushed the economy into recession this year.
In the
Central scenario, US GDP growth is expected to remain supported by
ongoing AI-related investment and consumer spending, and the
forecast, relative to the fourth quarter of 2025, has improved. In
the UK, the outlook has deteriorated and GDP growth forecasts are
lower, with the economy expected to slow as the effects of higher
inflation and interest rates impact on consumer spending and the
housing market.
Relative
to the fourth quarter of 2025, Hong Kong GDP forecasts have seen
notable improvement as the territory has benefited from growth in
trade-related demand for technology hardware and semiconductors, as
well as demand for professional and financial services. Growth
forecasts in the Chinese mainland have also improved as it benefits
from growth in AI-related technology exports and gains global
market share in other high value-added manufacturing sectors. The
UAE remains the weakest economy and forecasts have been lowered due
to the ongoing effects of the conflict in the Middle East on oil
output and services activity.
Risks
to the Central scenario outlook are captured in the outer
scenarios. The key sources of forecast uncertainty in the third
quarter of 2026 include the impact on oil prices from the conflict
in the Middle East and the risk to inflation and interest rates.
Uncertain trade policies also remain a headwind and tariff
escalation is also a key feature in the configuration of downside
scenarios.
The
four global scenarios used for calculating ECL at 30 September
2026 were:
–
The consensus
Central scenario: In this scenario, global growth is expected to
slow moderately over the remainder of 2026, as higher energy costs
raise consumer prices and central banks tighten policy. The global
AI investment cycle is expected to continue and partly offset the
effect of those headwinds on aggregate growth. Oil prices are calibrated from market
futures, which assume that prices decline gradually, that their
inflationary effects are temporary and second order effects
limited. Prices of Brent crude oil drop to $76 per barrel by the
end of 2027. However, the US Federal Reserve, the BoE and European
Central Bank are forecast to raise interest rates in the 12 months
ahead to curb rising inflation risks. Consequently, activity and
price growth in US, UK and European property markets, both
residential and commercial, are expected to remain subdued. In Hong
Kong, strong residential price growth is expected to moderate,
while high vacancies and future supply are expected to constrain
the commercial property recovery. Conditions in the property market
in the Chinese mainland are expected to remain challenging.
The US tariff rate,
measured as an effective trade-weighted average, is assumed to be
9.7%, compared with 15% at the end of 2025.
–
The consensus
Upside scenario: This scenario features faster growth in economic
activity than the consensus Central scenario. In this scenario,
trade and geopolitical tensions ease, causing tariffs and oil
prices to fall more quickly than assumed in the Central scenario.
Deregulation and technology-driven productivity gains also support
demand. The improvement in confidence drives an acceleration in GDP
growth and unemployment falls, while equity markets and house
prices see accelerated gains.
–
The consensus
Downside scenario: This scenario assumes the conflict in the Middle
East continues for longer than expected and that disruption through
the Strait of Hormuz intensifies, such that oil and gas flows
remain disrupted for a prolonged period. Brent crude oil is
projected to peak at $124 per barrel. At the same time, the
scenario assumes that capital expenditure-driven growth, related to
AI, stalls. As a consequence, inflation and policy interest rates
are assumed to rise more quickly than in the Central scenario as
higher energy costs pass through to other sectors of the economy.
Long-term government bond yields also rise quickly. In the
scenario, these combined pressures lead to a weakening of demand, a
deceleration in global growth, higher unemployment and tighter
credit conditions. Equity markets and house prices also come under
pressure. The scenario is consistent with an assumed US tariff
rate, measured as an effective trade-weighted average, of
17%.
–
The Downside 2
scenario: This scenario reflects management’s view of the
tail-end of the economic distribution. It incorporates the
simultaneous crystallisation of a number of risks that lead to a
deep global recession, including escalation of geopolitical risks,
a more prolonged disruption to energy supplies, and labour market
disruption due to the advancement of AI. Oil prices increase
sharply and peak at $132 per barrel, lifting inflation higher and
causing central banks to raise interest rates. Higher inflation,
rising short-term rates and concerns about sovereign debt issuance
drive a sharp rise in government bond yields. The subsequent
projected drop in demand leads to a rapid increase in unemployment,
which then fails to recover back to pre-scenario levels. The
scenario is consistent with an assumed US tariff rate, measured as
an effective trade-weighted average, of 20%.
The
following tables describe key macroeconomic variables in the
consensus Central scenario, consensus Upside, consensus Downside
and Downside 2 scenarios.
|
Consensus Central scenario 4Q26–3Q31 (as at
3Q26)
|
|||||||
|
|
UK
|
US
|
Hong Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|
GDP (annual average growth rate, %)1
|
|
|
|
|
|
|
|
|
2026
|
1.2
|
2.1
|
4.1
|
4.6
|
0.6
|
(0.9)
|
1.1
|
|
2027
|
1.1
|
2.1
|
2.8
|
4.4
|
0.9
|
8.0
|
1.8
|
|
2028
|
1.5
|
2.1
|
2.6
|
4.3
|
1.2
|
4.3
|
2.0
|
|
2029
|
1.5
|
2.2
|
2.2
|
4.1
|
1.2
|
3.8
|
2.1
|
|
2030
|
1.5
|
2.1
|
2.1
|
4.0
|
1.2
|
3.5
|
2.1
|
|
5-year
average2
|
1.4
|
2.1
|
2.4
|
4.2
|
1.1
|
4.5
|
2.0
|
|
Unemployment rate (%)
|
|
|
|
|
|
|
|
|
2026
|
5.1
|
4.3
|
3.6
|
5.2
|
8.1
|
2.5
|
2.7
|
|
2027
|
5.2
|
4.3
|
3.4
|
5.2
|
8.1
|
2.3
|
3.0
|
|
2028
|
5.0
|
4.2
|
3.2
|
5.1
|
7.8
|
2.2
|
3.0
|
|
2029
|
4.8
|
4.2
|
3.0
|
5.0
|
7.6
|
2.2
|
3.1
|
|
2030
|
4.7
|
4.1
|
3.0
|
5.0
|
7.6
|
2.1
|
3.2
|
|
5-year
average2
|
4.9
|
4.2
|
3.1
|
5.1
|
7.8
|
2.2
|
3.1
|
|
House prices (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
2.0
|
1.9
|
10.0
|
(5.4)
|
1.8
|
1.7
|
7.0
|
|
2027
|
1.7
|
1.6
|
2.4
|
(1.0)
|
4.7
|
0.1
|
4.7
|
|
2028
|
2.2
|
2.3
|
3.3
|
1.7
|
4.0
|
2.3
|
4.0
|
|
2029
|
2.3
|
2.7
|
3.7
|
3.3
|
3.1
|
2.0
|
4.0
|
|
2030
|
2.4
|
2.9
|
3.4
|
3.2
|
2.4
|
2.1
|
4.1
|
|
5-year
average2
|
2.2
|
2.4
|
3.5
|
1.6
|
3.3
|
1.5
|
4.3
|
|
Inflation (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
3.2
|
3.4
|
2.0
|
1.1
|
2.1
|
3.1
|
4.2
|
|
2027
|
2.6
|
2.5
|
1.9
|
1.2
|
1.7
|
2.2
|
3.7
|
|
2028
|
2.1
|
2.2
|
1.9
|
1.4
|
2.0
|
1.9
|
3.5
|
|
2029
|
2.1
|
2.2
|
2.0
|
1.5
|
2.0
|
1.9
|
3.4
|
|
2030
|
2.1
|
2.2
|
2.1
|
1.5
|
1.8
|
1.8
|
3.5
|
|
5-year
average2
|
2.3
|
2.3
|
2.0
|
1.4
|
1.9
|
1.9
|
3.6
|
|
Central bank policy rate (annual average, %)3
|
|
|
|
|
|
|
|
|
2026
|
3.8
|
3.7
|
4.1
|
3.0
|
2.2
|
3.7
|
6.7
|
|
2027
|
4.3
|
4.1
|
4.5
|
3.0
|
2.9
|
4.1
|
7.0
|
|
2028
|
4.3
|
4.1
|
4.4
|
3.0
|
2.9
|
4.1
|
7.7
|
|
2029
|
4.4
|
4.1
|
4.4
|
3.1
|
2.9
|
4.1
|
8.2
|
|
2030
|
4.4
|
4.1
|
4.5
|
3.2
|
3.0
|
4.1
|
8.4
|
|
5-year
average2
|
4.3
|
4.1
|
4.5
|
3.1
|
2.9
|
4.1
|
7.9
|
1 GDP
is calculated from a seasonally adjusted series.
2 The
five-year average is calculated over a projected period of 20
quarters from 4Q26 to 3Q31.
3 For
the Chinese mainland, the policy rate shown is the Loan Prime
Rate.
|
Consensus Central scenario 2026–2030 (as at
4Q25)
|
|||||||
|
|
UK
|
US
|
Hong
Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|
GDP
(annual average growth rate, %)1
|
|
|
|
|
|
|
|
|
2026
|
1.1
|
1.9
|
2.3
|
4.4
|
0.9
|
4.7
|
1.3
|
|
2027
|
1.4
|
2.0
|
2.3
|
4.2
|
1.2
|
4.1
|
2.0
|
|
2028
|
1.5
|
2.1
|
2.3
|
4.0
|
1.3
|
3.8
|
2.2
|
|
2029
|
1.5
|
2.1
|
2.4
|
3.8
|
1.3
|
3.5
|
2.2
|
|
2030
|
1.5
|
2.0
|
2.4
|
3.8
|
1.3
|
3.5
|
2.2
|
|
5-year
average2
|
1.4
|
2.0
|
2.3
|
4.0
|
1.2
|
3.9
|
2.0
|
|
Unemployment rate (%)
|
|
|
|
|
|
|
|
|
2026
|
4.9
|
4.4
|
3.6
|
5.2
|
7.6
|
2.5
|
3.2
|
|
2027
|
4.7
|
4.3
|
3.4
|
5.2
|
7.6
|
2.4
|
3.2
|
|
2028
|
4.7
|
4.1
|
3.1
|
5.1
|
7.5
|
2.4
|
3.2
|
|
2029
|
4.7
|
4.1
|
3.0
|
5.0
|
7.4
|
2.4
|
3.1
|
|
2030
|
4.7
|
4.1
|
3.0
|
5.0
|
7.4
|
2.4
|
3.1
|
|
5-year
average2
|
4.7
|
4.2
|
3.2
|
5.1
|
7.5
|
2.4
|
3.2
|
|
House prices (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
1.2
|
1.1
|
0.5
|
(1.6
|
4.3
|
5.8
|
4.8
|
|
2027
|
2.8
|
1.9
|
1.5
|
2.1
|
5.0
|
3.2
|
4.5
|
|
2028
|
3.3
|
2.7
|
2.5
|
3.5
|
4.1
|
2.3
|
4.4
|
|
2029
|
2.7
|
3.2
|
2.1
|
3.4
|
3.1
|
2.0
|
4.3
|
|
2030
|
2.4
|
3.2
|
2.1
|
2.3
|
2.2
|
2.1
|
4.2
|
|
5-year
average2
|
2.5
|
2.4
|
1.8
|
1.9
|
3.7
|
3.1
|
4.4
|
|
Inflation
(annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
2.5
|
2.9
|
1.8
|
0.7
|
1.4
|
2.0
|
3.7
|
|
2027
|
2.1
|
2.3
|
1.9
|
1.2
|
1.7
|
1.9
|
3.6
|
|
2028
|
2.1
|
2.2
|
2.0
|
1.4
|
2.1
|
1.9
|
3.5
|
|
2029
|
2.0
|
2.2
|
2.2
|
1.5
|
2.1
|
2.0
|
3.4
|
|
2030
|
2.0
|
2.2
|
2.2
|
1.5
|
1.9
|
2.0
|
3.4
|
|
5-year
average2
|
2.2
|
2.4
|
2.0
|
1.3
|
1.9
|
1.9
|
3.5
|
|
Central
bank policy rate (annual average, %)3
|
|
|
|
|
|
|
|
|
2026
|
3.5
|
3.4
|
3.8
|
3.0
|
1.9
|
3.5
|
7.0
|
|
2027
|
3.4
|
3.1
|
3.5
|
3.0
|
2.0
|
3.1
|
7.2
|
|
2028
|
3.5
|
3.2
|
3.6
|
3.1
|
2.1
|
3.3
|
7.5
|
|
2029
|
3.7
|
3.4
|
3.8
|
3.1
|
2.3
|
3.4
|
7.7
|
|
2030
|
3.8
|
3.6
|
3.9
|
3.2
|
2.5
|
3.6
|
7.9
|
|
5-year
average2
|
3.6
|
3.3
|
3.7
|
3.1
|
2.2
|
3.4
|
7.5
|
1 GDP is calculated from a
seasonally adjusted series.
2 The
five-year average is calculated over a projected period of 20
quarters from 1Q26 to 4Q30.
3 For
the Chinese mainland, the policy rate shown is the Loan Prime
Rate.
|
Consensus Upside scenario 4Q26–3Q31 (as at 3Q26)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP
level (%, start-to-peak)1
|
10.9
|
(3Q31)
|
15.7
|
(3Q31)
|
20.3
|
(3Q31)
|
29.7
|
(3Q31)
|
8.3
|
(3Q31)
|
30.7
|
(3Q31)
|
16.8
|
(3Q31)
|
|
Unemployment
rate (%, min)2
|
3.2
|
(3Q28)
|
3.5
|
(2Q27)
|
2.8
|
(3Q28)
|
4.7
|
(3Q28)
|
7.0
|
(3Q28)
|
1.9
|
(3Q28)
|
2.5
|
(2Q27)
|
|
House
price index (%, start-to-peak)1
|
17.7
|
(3Q31)
|
23.4
|
(3Q31)
|
26.0
|
(3Q31)
|
13.5
|
(3Q31)
|
19.1
|
(3Q31)
|
19.7
|
(3Q31)
|
28.1
|
(3Q31)
|
|
Inflation
rate (YoY % change, min)2
|
1.5
|
(4Q27)
|
0.9
|
(3Q27)
|
0.2
|
(3Q27)
|
(0.1)
|
(3Q27)
|
0.6
|
(3Q27)
|
1.8
|
(3Q28)
|
2.4
|
(3Q27)
|
|
Central
bank policy rate (%, min)2
|
3.8
|
(4Q26)
|
3.7
|
(4Q26)
|
4.1
|
(4Q26)
|
2.8
|
(3Q27)
|
2.5
|
(4Q26)
|
3.7
|
(4Q26)
|
5.5
|
(1Q27)
|
|
Consensus Upside scenario 2026–2030 (as at 4Q25)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP
level (%, start-to-peak)1
|
11.0
|
(4Q30)
|
15.2
|
(4Q30)
|
20.7
|
(4Q30)
|
28.6
|
(4Q30)
|
8.5
|
(4Q30)
|
29.0
|
(4Q30)
|
16.9
|
(4Q30)
|
|
Unemployment
rate (%, min)2
|
3.2
|
(4Q27)
|
3.5
|
(4Q27)
|
2.8
|
(2Q28)
|
4.7
|
(4Q27)
|
6.6
|
(4Q27)
|
2.0
|
(4Q27)
|
2.8
|
(3Q26)
|
|
House
price index (%, start-to-peak)1
|
20.0
|
(4Q30)
|
23.2
|
(4Q30)
|
19.4
|
(4Q30)
|
14.9
|
(4Q30)
|
22.6
|
(4Q30)
|
22.2
|
(4Q30)
|
29.5
|
(4Q30)
|
|
Inflation
rate (YoY % change, max)3
|
3.5
|
(1Q26)
|
3.6
|
(3Q26)
|
2.9
|
(2Q26)
|
1.5
|
(4Q30)
|
2.4
|
(4Q27)
|
3.1
|
(2Q26)
|
4.2
|
(1Q26)
|
|
Central
bank policy rate (%, max)3
|
3.9
|
(1Q26)
|
3.9
|
(1Q26)
|
4.2
|
(1Q26)
|
3.4
|
(1Q27)
|
2.5
|
(4Q30)
|
3.9
|
(1Q26)
|
8.1
|
(4Q30)
|
1
Cumulative change from the start of the scenario to the highest
level observed over the 20-quarter projection. GDP is calculated
from a seasonally adjusted series.
2
Lowest projected values in the scenario.
3 The
table shows the highest projected policy rate and year-on-year
percentage change in inflation in the scenario. For the Chinese
mainland, the policy rate shown is the Loan Prime
Rate.
|
Consensus Downside scenario 4Q26–3Q31 (as at
3Q26)
|
||||||||||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|||||||||||||||
|
GDP
level (%, start-to-trough)1
|
(0.4)
|
(1Q27)
|
(0.8)
|
(2Q27)
|
(1.6)
|
(3Q28)
|
(2.0)
|
(2Q27)
|
(0.6)
|
(2Q27)
|
(8.7)
|
(3Q27)
|
(1.0)
|
(2Q27)
|
||||||||
|
Unemployment
rate (%, max)2
|
6.7
|
(3Q27)
|
5.3
|
(2Q27)
|
4.8
|
(3Q27)
|
6.8
|
(4Q28)
|
9.0
|
(2Q27)
|
3.1
|
(2Q27)
|
3.5
|
(3Q27)
|
||||||||
|
House
price index (%, start-to-trough)1
|
(4.1)
|
(3Q27)
|
(3.3)
|
(4Q27)
|
(2.6)
|
(4Q27)
|
(6.8)
|
(2Q28)
|
0.5
|
(4Q26)
|
(6.1)
|
(1Q27)
|
0.8
|
(4Q26)
|
||||||||
|
Inflation
rate (YoY % change, max)2
|
4.1
|
(4Q26)
|
4.5
|
(1Q27)
|
3.4
|
(2Q27)
|
2.6
|
(1Q27)
|
3.4
|
(1Q27)
|
2.9
|
(4Q26)
|
5.9
|
(3Q27)
|
||||||||
|
Central
bank policy rate (%, max)2
|
4.5
|
(3Q31)
|
4.4
|
(1Q27)
|
4.8
|
(1Q27)
|
3.3
|
(3Q31)
|
3.1
|
(4Q27)
|
4.5
|
(1Q27)
|
9.0
|
(2Q27)
|
||||||||
|
Consensus Downside scenario 2026–2030 (as at
4Q25)
|
||||||||||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|||||||||||||||
|
GDP
level (%, start-to-trough)1
|
(0.2)
|
(2Q27)
|
(0.8)
|
(3Q26)
|
(1.7)
|
(4Q27)
|
(1.7)
|
(3Q26)
|
(0.4)
|
(3Q26)
|
0.4
|
(1Q26)
|
(1.0)
|
(1Q27)
|
||||||||
|
Unemployment
rate (%, max)2
|
6.2
|
(4Q26)
|
5.3
|
(3Q26)
|
4.8
|
(4Q26)
|
6.8
|
(4Q27)
|
8.6
|
(3Q26)
|
3.2
|
(3Q27)
|
3.8
|
(3Q26)
|
||||||||
|
House
price index (%, start-to-trough)1
|
(4.1)
|
(1Q27)
|
(3.1)
|
(1Q27)
|
(3.8)
|
(1Q27)
|
(5.6)
|
(1Q27)
|
0.7
|
(1Q26)
|
(3.4
|
(2Q26)
|
0.6
|
(1Q26)
|
||||||||
|
Inflation
rate (YoY % change)3
|
1.3
|
(3Q26)
|
3.4
|
(1Q26)
|
0.1
|
(4Q26)
|
(2.9)
|
(4Q26)
|
0.4
|
(4Q26)
|
0.5
|
(4Q26)
|
4.7
|
(1Q26)
|
||||||||
|
Central
bank policy rate (%)3
|
2.2
|
(3Q28)
|
4.6
|
(2Q26)
|
5.0
|
(2Q26)
|
1.5
|
(4Q26)
|
0.6
|
(1Q27)
|
4.6
|
(2Q26)
|
9.5
|
(2Q26)
|
||||||||
1
Cumulative change from the start of the scenario to the lowest
level observed over the 20-quarter projection. If the projected
series does not fall below its starting level, the value reported
is the smallest positive cumulative change over the projection
horizon. GDP is calculated from a seasonally adjusted
series.
2 The
highest projected values in the scenario.
3 The
table shows the peak year-on-year percentage change in inflation
and peak projected policy rates for the US and Mexico. For other
countries and territories, the trough is reported. For the UAE and
Hong Kong, the policy rate is also shown as its peak, reflecting
their US dollar-linked exchange rate regimes. For the Chinese
mainland, the policy rate shown is the Loan Prime
Rate.
|
Downside 2 scenario 4Q26–3Q31 (as at 3Q26)
|
||||||||||||||||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|||||||||||||||||||||
|
GDP
level (%, start-to-trough)1
|
(8.1)
|
(2Q28)
|
(5.4)
|
(1Q28)
|
(9.5)
|
(2Q28)
|
(9.1)
|
(1Q28)
|
(8.0)
|
(1Q28)
|
(16.4)
|
(3Q27)
|
(10.4)
|
(1Q28)
|
||||||||||||||
|
Unemployment
rate (%, max)2
|
9.8
|
(2Q28)
|
10.6
|
(1Q29)
|
7.0
|
(3Q27)
|
7.0
|
(3Q28)
|
10.9
|
(3Q28)
|
4.6
|
(2Q27)
|
5.2
|
(1Q28)
|
||||||||||||||
|
House
price index (%, start-to-trough)1
|
(33.1)
|
(1Q29)
|
(17.8)
|
(4Q27)
|
(15.4)
|
(2Q30)
|
(26.7)
|
(3Q28)
|
(11.0)
|
(4Q28)
|
(53.1)
|
(3Q28)
|
0.7
|
(4Q26)
|
||||||||||||||
|
Inflation
rate (YoY % change, max)2
|
5.8
|
(4Q26)
|
5.1
|
(1Q27)
|
4.0
|
(4Q26)
|
3.1
|
(1Q27)
|
4.0
|
(1Q27)
|
3.7
|
(4Q26)
|
5.9
|
(2Q27)
|
||||||||||||||
|
Central
bank policy rate (%, max)2
|
4.7
|
(1Q27)
|
4.7
|
(1Q27)
|
5.1
|
(1Q27)
|
3.5
|
(4Q26)
|
3.3
|
(1Q27)
|
4.7
|
(1Q27)
|
9.3
|
(1Q27)
|
||||||||||||||
|
Downside 2 scenario 2026–2030 (as at 4Q25)
|
|
|
UK
|
US
|
Hong
Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
||||||||||||||||
|
GDP
level (%, start-to-trough)1
|
(5.3)
|
(2Q27)
|
(4.5)
|
(1Q27)
|
(9.3)
|
(3Q27)
|
(6.0)
|
(1Q27)
|
(6.2)
|
(2Q27)
|
(5.7)
|
(2Q27)
|
(10.0)
|
(1Q27)
|
|||||||||
|
Unemployment
rate (%, max)2
|
8.9
|
(2Q27)
|
9.0
|
(1Q28)
|
7.0
|
(4Q26)
|
7.0
|
(4Q27)
|
10.7
|
(4Q27)
|
3.9
|
(3Q26)
|
5.2
|
(2Q27)
|
|||||||||
|
House
price index (%, start-to-trough)1
|
(24.2)
|
(4Q27)
|
(17.1)
|
(4Q26)
|
(19.6)
|
(2Q29)
|
(23.1)
|
(4Q27)
|
(5.9)
|
(3Q27)
|
(30.5)
|
(1Q28)
|
0.6
|
(1Q26)
|
|||||||||
|
Inflation
rate (YoY % change)3
|
(1.9)
|
(4Q26)
|
4.1
|
(2Q26)
|
(1.7)
|
(2Q27)
|
(6.5)
|
(4Q26)
|
(0.6)
|
(4Q26)
|
0.3
|
(4Q26)
|
4.8
|
(1Q26)
|
|||||||||
|
Central
bank policy rate (%)3
|
1.4
|
(1Q27)
|
4.7
|
(2Q26)
|
5.0
|
(2Q26)
|
1.2
|
(2Q27)
|
0.1
|
(4Q26)
|
4.7
|
(2Q26)
|
9.9
|
(2Q26)
|
|||||||||
1
Cumulative change from the start of the scenario to the lowest
level observed over the 20-quarter projection. If the projected
series does not fall below its starting level, the value reported
is the smallest positive cumulative change over the projection
horizon. GDP is calculated from a seasonally adjusted
series.
2 The
highest projected values in the scenario.
3 The
table shows the peak year-on-year percentage change in inflation
and peak projected policy rates for the US and Mexico. For other
countries and territories, the trough is reported. For the UAE and
Hong Kong, the policy rate is also shown as its peak, reflecting
their US dollar-linked exchange rate regimes. For the Chinese
mainland, the policy rate shown is the Loan Prime
Rate.
The
following table describes the probabilities assigned in each
scenario.
|
Scenario weightings, %
|
||||||||
|
|
Standard weights
|
UK
|
US
|
Hong Kong
|
Chinese mainland
|
France
|
UAE
|
Mexico
|
|
3Q26
|
|
|
|
|
|
|
|
|
|
Consensus
Upside
|
10
|
5
|
10
|
10
|
10
|
5
|
5
|
10
|
|
Consensus
Central
|
75
|
75
|
75
|
75
|
75
|
75
|
65
|
75
|
|
Consensus
Downside
|
10
|
15
|
10
|
10
|
10
|
15
|
25
|
10
|
|
Downside
2
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
|
|
|
|
|
|
|
|
|
|
|
4Q25
|
|
|
|
|
|
|
|
|
|
Consensus Upside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Consensus Central
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
|
Consensus Downside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Downside 2
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
Scenario
weightings for the standard outer scenarios are calibrated to
probabilities that are determined with reference to consensus
forecast probability distributions. Management may then choose to
vary weights if they assess that the calibration lags more recent
events, or does not reflect their view of the distribution of
economic risk. Management forms their view of the scenarios and
their distribution by considering them in the context of internal
assessments and other external indicators of risk and
uncertainty.
At 30
September 2026, management concluded that the risks associated with
the conflict in the Middle East varied by market and that this
should be reflected in assigned scenario weights.
For
Hong Kong, the Chinese mainland, the United States and Mexico, the
Central scenario was assessed to appropriately reflect the most
likely economic path for these markets, while the outer scenarios
adequately captured the main economic and financial risks,
including potentially higher oil prices and interest rates. These
markets were assigned standard weights, where 75% was assigned to
the Central scenario, 10% each to the consensus Upside and
Downside, and 5% assigned to the Downside 2.
In the
United Kingdom and France, the weight assigned to the Central
scenario was also assessed to be appropriate, but weights for the
consensus outer scenarios were varied. Discussion for those two
markets focused on the risks to wholesale European gas prices over
the coming winter months, in addition to the inflation risks and
subsequent uncertainty around the future path of interest rates.
The uncertain fiscal outlook in both markets was also noted. As
such, the consensus Upside scenario was assigned a weight of 5%,
the consensus Central 75%, the consensus Downside 15%, and the
Downside 2 was assigned 5%. This remained unchanged from the second
quarter of 2026.
For the
UAE, the Central scenario was considered to be particularly
uncertain given the ongoing conflict in the Middle East. It was
observed that dispersion in the pool of forecasts used to create
consensus forecast paths remains unusually wide. The consensus
Upside scenario was assigned a weight of 5%, the consensus Central
65%, the consensus Downside 25%, and the Downside 2 was assigned
5%. This remained unchanged from the second quarter of
2026.
Management
used the consensus and additional scenarios with their respective
weightings, together with management judgemental adjustments, to
ensure the total reported ECL allowance was reflective of expected
credit losses at the reporting date.
Management judgemental adjustments
In the
context of IFRS 9, management judgemental adjustments are typically
short-term increases or decreases to the modelled allowance for ECL
at either a customer, segment or portfolio level where management
believes allowances do not sufficiently reflect the credit
risk/expected credit losses at the reporting date. These can relate
to risks or uncertainties that are not reflected in the models
and/or to any late-breaking events with significant uncertainty,
subject to management review and challenge. The drivers of
management judgemental adjustments continue to evolve with the
economic environment and as new risks emerge. Further details can
be found in the section ‘Management judgemental
adjustments‘ on pages 120 and 121 of the Annual Report and
Accounts 2025.
Management
judgemental adjustments are reviewed under the governance process
for IFRS 9, as detailed in the section ‘Credit risk
management’ on page 107 of the Annual Report and Accounts
2025.
At 30
September 2026, total management judgemental adjustments for retail
and wholesale loans increased the allowance for ECL by $0.1bn
(31 December 2025: $0.2bn increase).
Management
judgemental adjustments for the wholesale portfolio remained stable
at $0.1bn at 30 September 2026. The adjustments were driven
primarily by uncertainties arising from the conflict in the Middle
East, as well as market-specific uncertainties across several
geographies. The scenario models capture some of the impact of the
conflict in the Middle East, while the adjustments account for
impacts arising above and beyond those already modelled for the
conflict. There was no significant change in management judgemental
adjustments compared with 31 December 2025.
Management
judgemental adjustments for the retail portfolio were not
significant at 30 September 2026. Market-specific uncertainties in
relation to the conflict in the Middle East were captured through
management judgemental adjustments that included localised impacts
for markets such as the UAE. Compared with 31 December 2025, there
was a reduction in management judgemental adjustments in the UK and
Mexico.
Economic scenarios sensitivity analysis of ECL
estimates
Management
considered the sensitivity of the ECL outcome against the economic
forecasts as part of the ECL governance process by recalculating
the ECL under each scenario described above for selected
portfolios, applying a 100% weighting to each scenario in turn. The
weighting is reflected in both the determination of a significant
increase in credit risk and the measurement of the resulting
ECL.
The
allowance for ECL calculated for the Upside and Downside scenarios
should not be taken to represent the upper and lower limits of
possible ECL outcomes. The impact of defaults that might occur in
the future under different economic scenarios is captured by
recalculating ECL for loans at the balance sheet date.
There
is a particularly high degree of estimation uncertainty in numbers
representing more severe risk scenarios when assigned a 100%
weighting.
For
wholesale credit risk exposures, the sensitivity analysis excludes
allowance for ECL and financial instruments related to defaulted
(stage 3) obligors. Loans to defaulted obligors are a small portion
of the overall wholesale lending exposure, even if representing the
majority of the allowance for ECL. The measurement of stage 3 ECL
is relatively more sensitive to credit factors specific to the
obligor than future economic scenarios, and therefore the effects
of macroeconomic factors are not necessarily the key consideration
when performing individual assessments of allowances for obligors
in default. Due to the range and specificity of the credit factors
to which the ECL is sensitive, it is not possible to provide a
meaningful alternative sensitivity analysis for a consistent set of
risks across all defaulted obligors.
For
retail credit risk exposures, the sensitivity analysis includes ECL
allowance for loans and advances to customers related to defaulted
obligors. This is because the retail ECL allowance for secured
mortgage portfolios, including loans in all stages, is sensitive to
macroeconomic variables. The analysis excludes portfolios utilising
less complex modelling approaches.
Group ECL sensitivity results
The
allowance for ECL of the scenarios and management judgemental
adjustments is highly sensitive to movements in economic forecasts.
If the Group allowance for ECL balance was estimated solely on the
basis of the consensus Upside, consensus Central, consensus
Downside, and Downside 2 scenarios at 30 September 2026, it
would increase/(decrease) as presented in the below
table.
|
|
Retail
|
Wholesale1
|
|
Total Group ECL at 30 Sep 20262
|
$bn
|
$bn
|
|
Reported ECL
|
2.7
|
2.0
|
|
Scenarios
|
|
|
|
100% consensus Central scenario
|
(0.1)
|
(0.3)
|
|
100% consensus Upside scenario
|
(0.2)
|
(0.7)
|
|
100% consensus Downside scenario
|
0.1
|
0.8
|
|
100% Downside 2 scenario
|
1.2
|
4.2
|
|
Total
Group ECL at 31 Dec 20252
|
|
|
|
Reported ECL
|
2.7
|
1.9
|
|
Scenarios
|
|
|
|
100%
consensus Central scenario
|
(0.0)
|
0.0
|
|
100% consensus Upside scenario
|
(0.1)
|
(0.3)
|
|
100%
consensus Downside scenario
|
0.0
|
0.6
|
|
100%
Downside 2 scenario
|
0.9
|
2.7
|
1
Includes low credit-risk financial instruments, such as debt
instruments at FVOCI, which have high carrying values but low ECL
under all the scenarios.
2 ECL
sensitivities exclude portfolios utilising less complex modelling
approaches for the retail portfolio and defaulted obligors for the
wholesale portfolio.
At 30
September 2026, the Group reported ECL allowance remained stable in
the retail portfolio and increased by $0.1bn in the wholesale
portfolio, compared with 31 December 2025.
For the
wholesale portfolio, the ECL allowance sensitivity to the 100%
consensus Downside and Downside 2 scenarios increased compared with
31 December 2025 as a result of sustained oil price increases
feeding through to elevated policy rates, deeper economic
contraction and weaker collateral values, with the UK and Hong Kong
most exposed. For the retail portfolio, the ECL allowance
sensitivity to the 100% consensus Downside and Downside 2 scenarios
increased compared with 31 December 2025, primarily due to UK
unsecured portfolios as a result of elevated policy rates and
unemployment.
Personal
lending
|
Total personal lending for loans and advances to customers at
amortised cost by stage distribution
|
|||||||||||||||
|
|
Gross carrying amount
|
Allowance for ECL
|
|||||||||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||
|
By legal entity
|
|
|
|
|
|
|
|
|
|||||||
|
HSBC UK Bank plc
|
198,632
|
13,598
|
1,180
|
213,410
|
(219)
|
(373)
|
(262)
|
(854
|
|||||||
|
HSBC
Bank plc
|
15,893
|
416
|
310
|
16,619
|
(13)
|
(9)
|
(89)
|
(111)
|
|||||||
|
The
Hongkong and Shanghai Banking Corporation Limited
|
204,601
|
5,431
|
763
|
210,795
|
(198)
|
(410)
|
(146)
|
(754)
|
|||||||
|
HSBC Bank Middle East Limited
|
4,094
|
308
|
68
|
4,470
|
(20)
|
(36)
|
(38)
|
(94)
|
|||||||
|
HSBC North America Holdings Inc.
|
19,381
|
630
|
394
|
20,405
|
(4)
|
(14)
|
(13)
|
(31)
|
|||||||
|
Grupo Financiero HSBC, S.A. de C.V.
|
10,949
|
1,080
|
759
|
12,788
|
(213)
|
(380)
|
(289)
|
(882)
|
|||||||
|
Other
trading entities
|
400
|
34
|
4
|
438
|
—
|
(1)
|
(3)
|
(4)
|
|||||||
|
At 30 Sep 2026
|
453,950
|
21,497
|
3,478
|
478,925
|
(667)
|
(1,223)
|
(840)
|
(2,730)
|
|||||||
|
By
legal entity
|
|
HSBC UK Bank plc
|
191,726
|
14,515
|
1,200
|
207,441
|
(201)
|
(315)
|
(256)
|
(772)
|
||||||||||||||||||
|
HSBC Bank plc
|
17,416
|
1,076
|
365
|
18,857
|
(16)
|
(14)
|
(107)
|
(137)
|
||||||||||||||||||
|
The
Hongkong and Shanghai Banking Corporation Limited
|
201,779
|
6,407
|
1,108
|
209,294
|
(199)
|
(432)
|
(170)
|
(801)
|
||||||||||||||||||
|
HSBC Bank Middle East Limited
|
4,061
|
134
|
47
|
4,242
|
(18)
|
(23)
|
(29)
|
(70)
|
||||||||||||||||||
|
HSBC North America Holdings Inc.
|
19,607
|
512
|
404
|
20,523
|
(4)
|
(12)
|
(14)
|
(30)
|
||||||||||||||||||
|
Grupo Financiero HSBC, S.A. de C.V.
|
11,705
|
1,212
|
817
|
13,734
|
(229)
|
(438)
|
(316)
|
(983)
|
||||||||||||||||||
|
Other trading entities
|
402
|
31
|
4
|
437
|
—
|
(1)
|
(3)
|
(4)
|
||||||||||||||||||
|
At 31 Dec 2025
|
446,696
|
23,887
|
3,945
|
474,528
|
(667)
|
(1,235)
|
(895)
|
(2,797)
|
||||||||||||||||||
Wholesale
lending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross carrying amount
|
Allowance for ECL
|
||||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
106,562
|
12,220
|
3,109
|
—
|
121,891
|
(223)
|
(350)
|
(746)
|
—
|
(1,319)
|
|
HSBC
Bank plc
|
87,067
|
6,053
|
1,998
|
66
|
95,184
|
(52)
|
(95)
|
(799)
|
(35)
|
(981)
|
|
The
Hongkong and Shanghai Banking Corporation Limited
|
311,903
|
33,405
|
11,495
|
86
|
356,889
|
(187)
|
(525)
|
(4,187)
|
(44)
|
(4,943)
|
|
HSBC Bank Middle East Limited
|
28,731
|
2,676
|
1,122
|
5
|
32,534
|
(40)
|
(57)
|
(613)
|
(4)
|
(714)
|
|
HSBC North America Holdings Inc.
|
33,505
|
2,547
|
583
|
193
|
36,828
|
(31)
|
(65)
|
(132)
|
—
|
(228)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
13,241
|
1,741
|
287
|
—
|
15,269
|
(33)
|
(60)
|
(155)
|
—
|
(248)
|
|
Other
trading entities
|
7,525
|
134
|
268
|
—
|
7,927
|
(6)
|
(7)
|
(187)
|
—
|
(200)
|
|
Holding
companies, shared service centres and intra-Group
eliminations
|
103
|
—
|
—
|
—
|
103
|
—
|
—
|
—
|
—
|
—
|
|
At 30 Sep 2026
|
588,637
|
58,776
|
18,862
|
350
|
666,625
|
(572)
|
(1,159)
|
(6,819)
|
(83)
|
(8,633)
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
98,719
|
10,488
|
3,430
|
—
|
112,637
|
(180)
|
(325)
|
(753)
|
—
|
(1,258)
|
|
HSBC Bank plc
|
98,175
|
5,582
|
1,756
|
58
|
105,571
|
(68)
|
(96)
|
(611)
|
(29)
|
(804)
|
|
The
Hongkong and Shanghai Banking Corporation Limited
|
283,206
|
33,990
|
12,837
|
77
|
330,110
|
(171)
|
(480)
|
(3,694)
|
(41)
|
(4,386)
|
|
HSBC Bank Middle East Limited
|
26,643
|
1,171
|
1,242
|
5
|
29,061
|
(19)
|
(31)
|
(630)
|
(5)
|
(685)
|
|
HSBC North America Holdings Inc.
|
28,456
|
3,518
|
517
|
193
|
32,684
|
(41)
|
(100)
|
(145)
|
(1)
|
(287)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
12,057
|
2,268
|
378
|
—
|
14,703
|
(47)
|
(49)
|
(190)
|
—
|
(286)
|
|
Other trading entities
|
7,727
|
164
|
285
|
—
|
8,176
|
(12)
|
(4)
|
(180)
|
—
|
(196)
|
|
Holding
companies, shared service centres and intra-Group
eliminations
|
90
|
—
|
—
|
—
|
90
|
—
|
—
|
—
|
—
|
—
|
|
At 31 Dec 2025
|
555,073
|
57,181
|
20,445
|
333
|
633,032
|
(538)
|
(1,085)
|
(6,203)
|
(76)
|
(7,902)
|
Hong
Kong commercial real estate
In the
table below, we have disclosed information related to commercial
real estate (‘CRE’) exposures booked in Hong Kong
(excluding exposures to Chinese mainland borrowers) by stage and
credit quality. These exposures mostly comprise lending to Hong
Kong borrowers and, to a lesser degree, borrowers
overseas.
|
Commercial real estate lending to customers – Hong Kong
excluding exposure to Chinese mainland borrowers
|
|||
|
|
30 Sep 2026
|
30 Jun 2026
|
31 Dec 2025
|
|
|
$m
|
$m
|
$m
|
|
Gross loans and advances
|
|
|
|
|
By stage
|
|
|
|
|
Stage
1
|
10,212
|
10,556
|
10,666
|
|
Stage
2
|
13,119
|
12,753
|
13,652
|
|
Stage 3
|
5,593
|
5,989
|
6,306
|
|
By credit quality
|
|
|
|
|
Strong
|
4,702
|
3,464
|
3,314
|
|
Good
|
6,580
|
7,652
|
8,225
|
|
Satisfactory
|
9,589
|
9,663
|
10,352
|
|
Sub-standard
|
2,460
|
2,530
|
2,427
|
|
Credit
impaired
|
5,593
|
5,989
|
6,306
|
|
At
|
28,924
|
29,298
|
30,624
|
|
Allowance for ECL
|
(1,405)
|
(1,331)
|
(1,077)
|
The
Hong Kong CRE ‘credit-impaired‘ portfolio (excluding
exposure to Chinese mainland borrowers) recorded further ECL
allowances in the third quarter of 2026, reflecting continued
pressure on property prices, primarily in non-prime segments.
However, credit migration to the ‘credit-impaired’
category remains low and predominantly secured.
‘Sub-standard‘
and ‘credit-impaired‘ exposures decreased to $8.1bn (30
June 2026: $8.5bn and 31 December 2025: $8.7bn), of which 95% were
secured (30 June 2026: 95% and 31 December 2025: 95%). As at 31
August 2026, the weighted average loan to value of
‘credit-impaired’ exposures increased to 83% (30 June
2026: 82% and 31 December 2025: 71%). The unsecured portfolio
remained resilient, with 87% of exposures rated
‘strong’ or ‘good’ and limited
credit-impaired balances (30 June 2026: 86% and 31 December 2025:
89%).
Market
conditions continued to stabilise in the third quarter of 2026,
however performance remained varied, with non-prime segments
continuing to face higher vacancy rates, valuation pressure and
subdued investor appetite. Sentiment in the residential property
sector remains resilient, while leasing activity improved in prime
office and retail property sectors. Nevertheless, inflation and
interest rate pressures present a headwind to the recovery.
Portfolio performance remains sensitive to further interest rate
increases, particularly for smaller and more leveraged
borrowers.
The
portfolio continues to be actively managed through enhanced
monitoring, regular portfolio reviews and stress testing with a
particular focus on borrowers exhibiting higher refinancing, debt
servicing or collateral risks. Origination remains selective with a
continued repositioning towards stronger sponsors and a focus on
more resilient property sectors.
Capital and liquidity risk
Capital
and liquidity overview
|
Capital and liquidity adequacy metrics
|
||
|
|
At
|
|
|
|
30 Sep 2026
|
30 Jun 2026
|
|
Risk-weighted assets (‘RWAs‘) ($bn)
|
|
|
|
Credit
risk
|
722.8
|
707.9
|
|
Counterparty
credit risk
|
48.7
|
48.3
|
|
Market risk
|
31.3
|
30.6
|
|
Operational risk
|
119.6
|
119.6
|
|
Total risk-weighted assets
|
922.4
|
906.4
|
|
Capital ($bn)
|
|
|
|
Common
equity tier 1 capital
|
128.1
|
127.7
|
|
Tier 1 capital
|
150.5
|
151.3
|
|
Total capital
|
176.8
|
178.8
|
|
Capital ratios (%)
|
|
|
|
Common equity tier 1 ratio
|
13.9
|
14.1
|
|
Tier 1 ratio
|
16.3
|
16.7
|
|
Total capital ratio
|
19.2
|
19.7
|
|
Liquidity coverage ratio (‘LCR’)
|
|
|
|
Total high-quality liquid assets ($bn)
|
719.4
|
713.7
|
|
Total net cash outflow ($bn)
|
544.1
|
534.5
|
|
LCR
(%)
|
132
|
134
|
We
refer to the UK Capital Requirements Regulation, the Prudential
Regulation Authority (‘PRA‘) Rulebook and any laws,
regulations, requirements, rules, guidelines, standards and
policies relating to capital adequacy, leverage and liquidity
adopted by the relevant regulators, as applicable, and which are
applicable to HSBC as the ‘Prudential rules’. Any
references to European Union (’EU‘) regulations and
directives (including technical standards) should, as applicable,
be read as references to the UK’s version of such regulation
and/or directive, as onshored into UK law under the European Union
(Withdrawal) Act 2018 and as may be subsequently amended under UK
law.
Capital
figures and ratios in the previous table are calculated in
accordance with the Prudential rules. Effective 1 January 2025, the
IFRS 9 transitional arrangements came to an end, followed by the
end of the UK Capital Requirements Regulation grandfathering
provisions on 28 June 2025. Our capital figures are therefore the
same, for both the transitional and end-point basis. The LCR is
based on the average value of the preceding 12 months.
Regulatory
numbers and ratios are as presented at the date of reporting. Small
changes may arise between these numbers and ratios and those
subsequently submitted in regulatory filings. Where differences are
significant, we may restate in subsequent periods.
Capital
At 30
September 2026, our CET1 capital ratio decreased to 13.9% from
14.1% at 30 June 2026, driven by:
–
a 0.3 percentage
point decrease due to higher RWAs excluding foreign exchange
translation differences, mainly from asset size and model
updates;
–
a 0.2 percentage
point decrease mainly due to a decrease in the fair value of
hold-to-collect-and-sell debt instruments, due to higher
yields;
–
a 0.1 percentage
point decrease due to the share buy-back announced with our interim
results; and
–
a 0.4 percentage
point increase in CET1 capital generation, through regulatory
profits net of dividends.
At 30
September 2026, our Pillar 2A requirement was equivalent to $23.4bn
of RWAs, as per the PRA’s Individual Capital Requirement of
2.5% based on a point-in-time assessment, of which 1.4% was met by
CET1 capital. Throughout 3Q26, we complied with the PRA’s
regulatory capital adequacy requirement.
Leverage
|
Leverage ratio
|
|
|
|
|
At
|
|
|
|
30 Sep 2026
|
30 Jun 2026
|
|
|
$bn
|
$bn
|
|
Tier 1
capital (leverage)
|
150.5
|
151.3
|
|
Total
leverage ratio exposure
|
3,090.0
|
3,076.2
|
|
|
%
|
%
|
|
Leverage ratio
|
4.9
|
4.9
|
Our
leverage ratio of 4.9% at 30 September 2026 was unchanged from 30
June 2026, reflecting a marginal increase in leverage exposures
driven by growth in the balance sheet and a reduction in tier 1
capital.
At 30
September 2026, our UK minimum leverage ratio requirement was
3.25%, with an additional buffer of 1.0%, comprising a 0.7%
additional leverage ratio buffer and a 0.3% countercyclical
leverage ratio buffer. These buffers translated into capital values
of $21.6bn and $9.3bn respectively. We exceeded these leverage
requirements throughout 3Q26.
Risk-weighted
assets
|
RWAs by business segment
|
||||||||||||||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
RWAs
|
||||||||||
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
||||||||||
|
Credit risk
|
118.5
|
139.1
|
297.9
|
75.5
|
91.8
|
722.8
|
||||||||||
|
Counterparty credit risk
|
0.1
|
0.1
|
44.4
|
2.7
|
1.4
|
48.7
|
||||||||||
|
Market risk
|
0.1
|
—
|
24.7
|
0.1
|
6.4
|
31.3
|
||||||||||
|
Operational
risk
|
23.7
|
21.5
|
62.4
|
17.2
|
(5.2)
|
119.6
|
||||||||||
|
At 30 Sep 2026
|
142.4
|
160.7
|
429.4
|
95.5
|
94.4
|
922.4
|
||||||||||
|
At 30 Jun 2026
|
140.0
|
156.5
|
426.3
|
89.3
|
94.3
|
906.4
|
||||||||||
|
RWAs by legal entities1
|
|||||||||||||||||||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
RWAs
|
||||||||||||||||
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
||||||||||||||||
|
Credit risk
|
146.0
|
69.1
|
346.0
|
21.0
|
58.1
|
23.9
|
48.2
|
10.5
|
722.8
|
||||||||||||||||
|
Counterparty credit risk
|
0.3
|
26.3
|
14.3
|
0.8
|
3.9
|
0.6
|
2.5
|
—
|
48.7
|
||||||||||||||||
|
Market
risk2
|
0.1
|
23.6
|
16.8
|
2.3
|
2.3
|
0.8
|
1.6
|
1.3
|
31.3
|
||||||||||||||||
|
Operational risk
|
24.0
|
22.9
|
63.3
|
5.1
|
8.3
|
6.1
|
5.7
|
(15.8)
|
119.6
|
||||||||||||||||
|
At 30 Sep 2026
|
170.4
|
141.9
|
440.4
|
29.2
|
72.6
|
31.4
|
58.0
|
(4.0)
|
922.4
|
||||||||||||||||
|
At 30 Jun 2026
|
165.0
|
144.6
|
423.3
|
29.4
|
78.3
|
31.9
|
59.6
|
(3.4
|
906.4
|
||||||||||||||||
1
Balances are on a third-party Group consolidated
basis.
2
Market risk RWAs are non-additive across the legal entities due to
diversification effects within the Group.
|
RWA movement by legal entities by key driver1
|
||||||||||||||||||||||||
|
|
Credit risk, counterparty credit risk and operational
risk
|
|
|
|||||||||||||||||||||
|
|
HSBC UK Bank plc2
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding
companies, shared service centres and intra-Group
eliminations2
|
Market risk
|
Total RWAs
|
||||||||||||||
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
||||||||||||||
|
RWAs
at 1 Jul 2026
|
164.8
|
118.4
|
405.9
|
26.4
|
75.8
|
31.3
|
58.1
|
(4.9)
|
30.6
|
906.4
|
||||||||||||||
|
Asset
size
|
5.5
|
(3.3)
|
14.8
|
(0.1)
|
(1.2)
|
0.4
|
—
|
0.3
|
2.3
|
18.7
|
||||||||||||||
|
Asset quality
|
1.0
|
(0.2
|
(1.8)
|
0.2
|
(0.4
|
—
|
—
|
—
|
—
|
(1.2)
|
||||||||||||||
|
Model
updates2
|
2.2
|
3.8
|
3.5
|
0.5
|
(3.5)
|
—
|
—
|
(0.6)
|
—
|
5.9
|
||||||||||||||
|
Methodology and policy
|
(3.5)
|
(0.1)
|
0.1
|
(0.1)
|
(0.4)
|
(0.3)
|
—
|
(0.1)
|
(1.6)
|
(6.0)
|
||||||||||||||
|
Acquisitions and disposals
|
—
|
—
|
—
|
—
|
—
|
—
|
(1.3)
|
—
|
—
|
(1.3)
|
||||||||||||||
|
Foreign
exchange movements3
|
0.3
|
(0.3)
|
1.1
|
—
|
—
|
(0.8)
|
(0.4)
|
—
|
—
|
(0.1)
|
||||||||||||||
|
Total RWA movement
|
5.5
|
(0.1)
|
17.7
|
0.5
|
(5.5)
|
(0.7)
|
(1.7)
|
(0.4)
|
0.7
|
16.0
|
||||||||||||||
|
RWAs at 30 Sep 2026
|
170.3
|
118.3
|
423.6
|
26.9
|
70.3
|
30.6
|
56.4
|
(5.3)
|
31.3
|
922.4
|
||||||||||||||
|
RWA movement by business segment by key driver
|
|||||||||||||||||||
|
|
Credit risk, counterparty credit risk and operational
risk
|
Market
risk
|
Total
RWAs
|
||||||||||||||||
|
|
Hong
Kong
|
UK2
|
CIB
|
Corporate Centre
|
|||||||||||||||
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|||||||||||||
|
RWAs at 1 Jul 2026
|
139.8
|
156.4
|
403.0
|
87.4
|
30.6
|
906.4
|
|||||||||||||
|
Asset size
|
2.8
|
4.7
|
1.9
|
0.4
|
2.3
|
18.7
|
|||||||||||||
|
Asset quality
|
(1.1)
|
1.2
|
(1.3)
|
0.1
|
—
|
(1.2)
|
|||||||||||||
|
Model
updates2
|
(0.7
|
1.4
|
4.4
|
—
|
—
|
5.9
|
|||||||||||||
|
Methodology and
policy
|
1.4
|
(3.3)
|
(2.1)
|
(0.1)
|
(1.6)
|
(6.0)
|
|||||||||||||
|
Acquisitions and disposals
|
—
|
—
|
(1.0)
|
—
|
—
|
(1.3)
|
|||||||||||||
|
Foreign
exchange movements3
|
0.1
|
0.3
|
(0.2) |
0.2
|
—
|
(0.1)
|
|||||||||||||
|
Total RWA movement
|
2.5
|
4.3
|
1.7
|
0.6
|
0.7
|
16.0
|
|||||||||||||
|
RWAs at 30 Sep 2026
|
142.3
|
160.7
|
404.7
|
88.0
|
31.3
|
922.4
|
|||||||||||||
1
Balances are on a third-party Group consolidated
basis.
2
Includes a c.$0.8bn benefit for HSBC UK Bank plc from the
redevelopment of the global large corporates PD model. This is
reported under ‘Holding companies, shared service centres and
intra-Group eliminations‘ as it is not recognised in HSBC UK
Bank plc, and included in the UK business segment.
3
Foreign exchange movements for credit risk are computed by
retranslating RWAs into US dollars using the underlying
transactional currencies, and operational risk is calculated using
the entities‘ functional currencies.
Overall,
RWAs increased by $16.0bn during 3Q26, primarily due to increases
in sovereign exposures, lending and commitments, together with the
impact from redevelopment of models, partly offset by changes in
methodology and policy.
Asset size
RWAs
increased by $6.6bn in IWPB, primarily driven by higher sovereign
exposures arising from participation in the Foreign Currency
Non-Resident Deposit scheme in India.
In our
UK business, RWAs rose by $4.7bn due to continued growth in
corporate and retail lending.
RWAs
increased by $2.8bn in our Hong Kong business, reflecting an
increase in loan commitments and higher retail
lending.
In CIB,
RWAs increased by $1.9bn mainly due to corporate lending growth in
Asia, partly offset by lower securities financing transactions in
HSBC Bank plc.
Market
risk RWAs increased by $2.3bn, mainly due to the averaging effect
in stressed value at risk, driven by interest rate and foreign
exchange risk profiles under stressed market
conditions.
Asset quality
The
$1.2bn decrease in RWAs was primarily due to changes in credit risk
parameters and composition of the underlying portfolios in our CIB
and Hong Kong businesses, partly offset by unfavourable credit risk
migrations, mainly in our UK business.
Model updates
RWAs
increased by $5.9bn primarily due to the impact of the redeveloped
PD model for large corporates, mainly in CIB, partly offset by
reductions in our UK and Hong Kong businesses, as well as an
increase for the small and medium-sized enterprises PD model in our
UK business.
Methodology and policy
The
$6.0bn decrease in RWAs was primarily driven by a significant risk
transfer transaction executed through the issuance of a CLN in our
UK business, changes to the market risk capital multiplier in CIB,
and credit risk parameter refinements reflecting favourable
movements in CIB, partly offset by adverse movements in our Hong
Kong business.
Acquisitions and disposals
RWAs
decreased by $1.3bn as a result of the sale of our operations in
Uruguay.
|
|
Additional
information
|
|
Share buy-back
On 5
August 2026, HSBC Holdings commenced a share buy-back of its
ordinary shares of up to a maximum consideration of $1.0bn. This
share buy-back concluded on 28 September 2026 with 31,735,502
ordinary shares repurchased for cancellation on UK trading venues
and 16,921,600 ordinary shares repurchased for cancellation on
HKEx.
On 27
October 2026, HSBC Holdings announced its intention to initiate a
share buy-back to purchase its ordinary shares up to a maximum
consideration of $1bn, which is expected to commence shortly after
the release of our 3Q26 results and complete by our 2026 full-year
results announcement.
|
|
Dividends
Second
interim dividend for 2026
On 4
August 2026, the Directors approved a second interim dividend for
2026 of $0.10 per ordinary share, which was paid on 25 September
2026 in cash. The pound sterling and Hong Kong dollar amounts of
approximately £0.074134 and HK$0.784088 were calculated using
the forward exchange rates quoted by HSBC Bank plc in London at or
about 11.00am on 14 September 2026.
Third
interim dividend for 2026
On 27
October 2026, the Directors approved a third interim dividend in
respect of the financial year ending 31 December 2026 of $0.10 per
ordinary share (the ‘dividend‘), an expected
distribution of approximately $1.71bn. The dividend will be payable
on 17 December 2026 to holders of record on the Principal Register
in the UK, the Hong Kong Overseas Branch Register or the Bermuda
Overseas Branch Register on 6 November 2026.
The
dividend will be payable in US dollars, or in pounds sterling or
Hong Kong dollars at the forward exchange rates quoted by HSBC Bank
plc in London at or about 11.00am local time on 7 December 2026.
The ordinary shares in London, Hong Kong and Bermuda will be quoted
ex-dividend on 5 November 2026. American Depositary Shares
(’ADSs‘) in New York will be quoted ex-dividend on 6
November 2026.
The
default currency on the Principal Register in the UK is pounds
sterling, and dividends can also be paid in Hong Kong dollars or US
dollars, or a combination of these currencies. International
shareholders can register to join the Global Dividend Service to
receive dividends in their local currencies. Please register and
read the terms and conditions at www.investorcentre.co.uk. UK
shareholders can also register their pounds sterling bank mandates
at www.investorcentre.co.uk.
The
default currency on the Hong Kong Overseas Branch Register is Hong
Kong dollars, and dividends can also be paid in US dollars or
pounds sterling, or a combination of these currencies. Shareholders
can arrange for direct credit of Hong Kong dollar cash dividends
into their bank account or arrange to send US dollar or pounds
sterling cheques to the credit of their bank account. Shareholders
can register for these services at www.investorcentre.com/hk.
Shareholders can also download a dividend currency election form
from www.hsbc.com/dividends, www.investorcentre.com/hk, or
www.hkexnews.hk.
The
default currency on the Bermuda Overseas Branch Register is US
dollars, and dividends can also be paid in Hong Kong dollars or
pounds sterling, or a combination of these currencies. Shareholders
can change their dividend currency election by contacting the
Bermuda investor relations team. Shareholders can download a
dividend currency election form from
www.hsbc.com/dividends.
Changes
to currency elections must be received by 2 December 2026 to be
effective for this dividend.
The
dividend will be payable on ADSs, each of which represents five
ordinary shares, on 17 December 2026 to holders of record on 6
November 2026. The dividend of $0.50 per ADS will be payable by the
depositary in US dollars. Alternatively, the cash dividend may be
invested in additional ADSs by participants in the dividend
reinvestment plan operated by the depositary. Elections must be
received by 27 November 2026.
Any
person who has acquired ordinary shares registered on the Principal
Register in the UK, the Hong Kong Overseas Branch Register or the
Bermuda Overseas Branch Register but who has not lodged the share
transfer with the Principal Registrar in the UK, Hong Kong Overseas
Branch Registrar or Bermuda Overseas Branch Registrar should do so
before 4.00pm local time on 6 November 2026 in order to receive the
dividend.
Ordinary
shares may not be removed from or transferred to the Principal
Register in the UK, the Hong Kong Overseas Branch Register or the
Bermuda Overseas Branch Register on 6 November 2026. Any person
wishing to remove ordinary shares to or from each register must do
so before 4.00pm local time on 5 November 2026.
Shares
repurchased under HSBC Holdings plc buy-backs, which have not yet
been cancelled from the Hong Kong custodians‘ CCASS account
as at the record date, will not be eligible for the
dividend.
Transfers
of ADSs must be lodged with the depositary by 11.00am local time on
6 November 2026 in order to receive the dividend. ADS holders who
receive a cash dividend will be charged a fee, which will be
deducted by the depositary, of $0.005 per ADS per cash
dividend.
Dividend
on preference shares
A
quarterly dividend of £0.01 per Series A sterling preference
share is payable on 16 March, 15 June, 15 September and
15 December 2026 for the quarter then ended at the sole and
absolute discretion of the Board of HSBC Holdings plc. Accordingly,
the Board of HSBC Holdings plc has approved a quarterly dividend to
be payable on 15 December 2026 to holders of record on 30 November
2026.
For and
on behalf of
HSBC
Holdings plc
Angela McEntee
Group
Company Secretary
The
Board of Directors of HSBC Holdings plc as at the date of this
announcement comprises: Brendan Robert Nelson*, Georges Bahjat
Elhedery, Geraldine Joyce Buckingham†, Wei Sun
Christianson†, Rachel
Duan†, Dame Carolyn
Julie Fairbairn†, James Anthony
Forese†, Steven Craig
Guggenheimer†, Manveen (Pam)
Kaur, Dr José Antonio Meade Kuribreña†, Richard Henry
Meddings†, Kalpana
Jaisingh Morparia†, Eileen K
Murray†, Elizabeth
Alison Platt†, and Swee Lian
Teo†.
*
Independent non-executive Chairman
†
Independent non-executive Director
Cautionary statement regarding forward-looking
statements
This
Earnings Release 3Q26 contains certain forward-looking statements
with respect to HSBC’s financial condition; results of
operations and business, including the strategic priorities;
financial, investment and capital targets; and environmental,
social and governance (‘ESG’) ambitions, targets and
commitments described herein.
Statements
that are not historical facts, including statements about
HSBC’s beliefs and expectations, are forward-looking
statements. Words such as ‘may’, ‘will’,
‘should’, ‘expects’, ‘targets’,
‘anticipates’, ‘intends’,
‘plans’, ‘believes’, ‘seeks’,
‘estimates’, ‘potential’ and
‘reasonably possible’, or the negative thereof, other
variations thereon or similar expressions are intended to identify
forward-looking statements. These statements are based on current
plans, information, data, forecasts, estimates and projections, and
therefore undue reliance should not be placed on them.
Forward-looking statements speak only as of the date they are made.
Any such forward-looking statements are not a reliable indicator of
future performance, as they may involve significant stated or
implied assumptions and subjective judgements which may or may not
prove to be correct. There can be no assurance that any of the
matters set out in forward-looking statements are attainable, will
actually occur or will be realised or are complete or accurate. The
assumptions and judgments may prove to be incorrect and involve
known and unknown risks, uncertainties, contingencies and other
important factors, many of which are outside the control of HSBC.
HSBC makes no commitment to revise or update any forward-looking
statements to reflect events or circumstances occurring or existing
after the date of any forward-looking statements. Written and/or
oral forward-looking statements may also be made in the periodic
reports to the US Securities and Exchange Commission, summary
financial statements to shareholders, offering circulars and
prospectuses, press releases and other written materials, and in
oral statements made by HSBC’s directors, officers or
employees to third parties, including financial analysts.
Forward-looking statements involve inherent risks and
uncertainties. Readers are cautioned that a number of factors could
cause actual results to differ, in some instances materially, from
those anticipated or implied in any forward-looking statement.
These include, but are not limited to:
–
changes in general
economic conditions in the markets in which we operate, such as
new, continuing or deepening recessions, prolonged inflationary
pressures and fluctuations in employment levels and the
creditworthiness of customers beyond those factored into consensus
forecasts; the Russia-Ukraine war (including hybrid attacks across
Europe attributed to Russia), the conflict in the Middle East, or
any potential military action or conflict elsewhere, and their
impact on global economies and the markets where HSBC operates,
which could have a material adverse effect on (among other things)
our financial condition, results of operations, prospects,
liquidity, capital position and credit ratings; deviations from the
market and economic assumptions that form the basis for our ECL
measurements (including, without limitation, as a result of the
Russia-Ukraine war, the conflict in the Middle East, or any
potential military action or conflict elsewhere, inflationary
pressures, commodity price changes, and ongoing developments in the
commercial real estate sector and the residential property sector
in the Chinese mainland and Hong Kong); potential changes in
HSBC’s dividend policy; changes and volatility in foreign
exchange rates and interest rates levels, including the accounting
impact resulting from financial reporting in respect of
hyperinflationary economies; volatility in equity markets and the
risk of disruptive correction stemming from high company
valuations, including in the artificial intelligence and technology
sectors; lack of liquidity in wholesale funding or capital markets,
which may affect our ability to meet our obligations under
financing facilities or to fund new loans, investments and
businesses; geopolitical tensions or diplomatic developments
producing social instability or legal uncertainty, such as the
Russia-Ukraine war, the conflict in the Middle East, or any
potential military action or conflict elsewhere, and the related
imposition of sanctions, export-control and trade and investment
restrictions, as well as increased market volatility, supply chain
restrictions and disruptions, sustained increases in energy prices
and key commodity prices, claims of human rights violations,
diplomatic tensions and strategic competition between China and the
US, which may extend to and involve other countries and
territories, and developments in Hong Kong and Taiwan and the
surrounding maritime region, alongside other potential areas of
tension, which may adversely affect HSBC by creating regulatory,
reputational and market risks; the efficacy of government,
customer, and HSBC’s actions in managing and mitigating
ESG-related risks, in particular climate risk, nature-related risks
and human rights risks, and in supporting the global transition to
net zero carbon emissions, each of which can impact HSBC both
directly and indirectly through our customers and which may result
in potential financial and non-financial impacts; illiquidity and
downward price pressure in national real estate markets; adverse
changes in central banks’ policies with respect to the
provision of liquidity support to financial markets; heightened
market concerns over sovereign creditworthiness, fiscal capacity
and debt sustainability resulting in higher long-term government
debt yields, which could also increase sovereign funding pressures
and private sector borrowing costs and reduce the value of
HSBC’s sovereign bond holdings, along with the growing role
of non-bank financial institutions in holding and intermediating
sovereign debt and the continued growth of private equity and debt
markets, which may amplify the transmission of market volatility
and risks across markets; adverse changes in the funding status of
public or private defined benefit pensions; the significant
depreciation of the US dollar through 2025, with volatility
expected to persist; societal shifts in customer financing and
investment needs, including consumer perception as to the
continuing availability of credit; exposure to counterparty risk,
including third parties using us as a conduit for illegal
activities without our knowledge; and price competition in the
market segments we serve;
–
changes in
government policy and regulation, as well as monetary, fiscal,
interest rate and other policies of central banks and other
regulatory authorities in the major markets in which we operate and
the consequences thereof (including, without limitation, actions
taken as a result of changes in government following national
elections, higher social welfare commitments and increased
government expenditure on defence, energy security and climate
transition in the markets where the Group operates); continued
volatility in trade and tariff policies, changes in tariff rates,
including sector-specific measures imposed by various nations,
including the US, which could reduce capital investment and
consumer spending, disrupt supply chains and dampen global trade
growth; initiatives to change the size, scope of activities and
interconnectedness of financial institutions in connection with the
implementation of stricter regulation of financial institutions in
key markets worldwide; revised capital and liquidity benchmarks,
which could serve to deleverage bank balance sheets and lower
returns available from the current business model and portfolio
mix; changes to tax laws and tax rates applicable to HSBC,
including the imposition of levies or taxes designed to change
business mix and risk appetite; the practices, pricing or
responsibilities of financial institutions serving their consumer
markets; expropriation, nationalisation, confiscation of assets and
changes in legislation relating to foreign ownership; the
UK’s relationship with the EU, particularly with respect to
the potential divergence of UK and EU law on the regulation of
financial services; changes in government approach and regulatory
treatment in relation to ESG disclosures and reporting
requirements, and the current lack of a single standardised
regulatory approach to ESG across all sectors and markets; changes
in UK macroeconomic and fiscal policy, which may result in
fluctuations in the value of the pound sterling; general changes in
government policy (including, without limitation, actions taken as
a result of changes in government following national elections in
the markets where the Group operates) that may significantly
influence investor decisions; the costs, effects and outcomes of
regulatory reviews, actions or litigation, including any additional
compliance requirements; and the effects of competition in the
markets where we operate including increased competition from
non-bank financial services companies; and
–
factors specific to
HSBC, including our success in adequately identifying the risks we
face, such as the incidence of loan losses or delinquency, and
managing those risks (through account management, hedging and other
techniques); our ability to achieve our financial, investment,
capital and ESG ambitions, targets and commitments (including the
positions set forth in our thermal coal phase-out policy and our
energy policy and our targets to reduce our on-balance sheet
financed emissions and, where applicable, facilitated emissions in
our portfolio of selected high-emitting sectors), which may result
in our failure to achieve any of the expected outcomes of our
strategic priorities and may result in reputational risks;
technology changes and developments, including the development,
deployment and use of artificial intelligence, including generative
artificial intelligence, by HSBC, third-party service providers,
counterparties, customers, competitors and other market
participants, and related operational, cyber, fraud, data,
regulatory, compliance, litigation, reputational and competitive
risks, as well as such technological developments’ impact on
how we manage risk; model limitations or failure, including,
without limitation, the impact that high inflationary pressures and
interest rates have had on the performance and usage of financial
models, which may require us to hold additional capital, incur
losses and/or use compensating controls, such as judgemental
post-model adjustments, to address model limitations; changes to
the judgements, estimates and assumptions we base our financial
statements on; changes in our ability to meet the requirements of
regulatory stress tests; a reduction in the credit ratings assigned
to us or any of our subsidiaries, which could increase the cost or
decrease the availability of our funding and affect our liquidity
position and net interest margin; changes to the reliability and
security of our data management, data privacy, information and
technology infrastructure, including threats from cyber-attacks,
which may impact our ability to service clients and may result in
financial loss, business disruption and/or loss of customer
services and data; the accuracy and effective use of data,
including internal management information that may not have been
independently verified; changes in insurance customer behaviour and
insurance claim rates; our dependence on loan payments and
dividends from subsidiaries to meet our obligations; changes in our
reporting frameworks and accounting standards, which have had and
may continue to have a material impact on the way we prepare our
financial statements; our ability to successfully execute planned
strategic acquisitions and disposals; our success in adequately
integrating acquired businesses into our business; our ability to
successfully execute and implement the announced strategic
reorganisation of the Group; changes in our ability to manage
third-party, fraud, financial crime and reputational risks inherent
in our operations; employee misconduct, which may result in
regulatory sanctions and/or reputational or financial harm; changes
in skill requirements, ways of working and talent shortages, which
may affect our ability to recruit and retain senior management and
an inclusive and skilled workforce; and changes in our ability to
develop sustainable finance and ESG-related products consistent
with the evolving expectations of our regulators, and our capacity
to measure the environmental and social impacts from our financing
activity (including as a result of data limitations and changes in
methodologies), which may affect our ability to achieve our ESG
ambitions, targets and commitments, including our net zero
ambition, our targets to reduce on-balance sheet financed emissions
and, where applicable, facilitated emissions in our portfolio of
selected high-emitting sectors and the positions set forth in our
thermal coal phase-out policy and our energy policy, and increase
the risk of greenwashing. Effective risk management depends on,
among other things, our ability through stress testing and other
techniques to prepare for events that cannot be captured by the
statistical models it uses; our success in addressing operational,
legal and regulatory, and litigation challenges; and other risks
and uncertainties we identify in ‘Risk - Managing risk’
on page 41 of this Earnings Release 3Q26.
Additional
detailed information concerning important factors, including but
not limited to ESG-related factors, that could cause actual results
to differ materially from those anticipated or implied in any
forward-looking statement in this Earnings Release 3Q26 is
available in our Annual Report and Accounts for the fiscal year
ended 31 December 2025, which was filed with the SEC on Form 20-F
on 26 February 2026, our Earnings Release 1Q26, furnished to the
SEC on Form 6-K on 5 May 2026 and our Interim Report for the six
months ended 30 June 2026, furnished to the SEC on Form 6-K on 4
August 2026.
|
|
Investor relations/media relations contacts
For
further information contact:
|
Investor relations
|
|
Media relations
|
|
UK – Alastair Ryan
|
|
UK
– HSBC Group Press Office
|
|
Telephone: +44 (0)7468 703 010
|
|
Telephone:
+44 (0)20 7991 8096
|
|
Email: investorrelations@hsbc.com
|
|
Email: pressoffice@hsbc.com
|
|
|
|
|
|
Hong Kong – Yafei Tian
|
|
Hong Kong – Aman Ullah
|
|
Telephone: +852 2899 8909
|
|
Telephone: +852 3941 1120
|
|
Email: investorrelations@hsbc.com.hk
|
|
Email: aspmediarelations@hsbc.com.hk
|
|
|
|
|
Abbreviations
|
1Q26
|
First quarter of 2026
|
|
2Q26
|
Second quarter of 2026
|
|
3Q25
|
Third quarter of 2025
|
|
3Q26
|
Third quarter of 2026
|
|
4Q25
|
Fourth quarter of 2025
|
|
4Q26
|
Fourth quarter of 2026
|
|
9M25
|
First nine months of 2025
|
|
9M26
|
First nine months of 2026
|
|
ADR
|
American
Depositary Receipt
|
|
ADS
|
American
Depositary Share
|
|
AI
|
Artificial
intelligence
|
|
AIEA
|
Average interest-earning assets
|
|
Banking
NII
|
Banking
net interest income
|
|
BoCom
|
Bank of
Communications Co., Limited, one of China’s largest
banks
|
|
BoE
|
Bank of
England
|
|
Bps
|
Basis points. One basis point is equal to one-hundredth of a
percentage point
|
|
CET1
|
Common equity tier 1
|
|
Chinese mainland
|
People’s Republic of China excluding Hong Kong and
Macau
|
|
CIB
|
Corporate
and Institutional Banking, a business segment
|
|
CLN
|
Credit-linked note
|
|
CODM
|
Chief Operating Decision Maker
|
|
Corporate Centre
|
Corporate Centre comprises Central Treasury, our legacy businesses,
interests in our associates and joint ventures, central stewardship
costs and consolidation adjustments
|
|
CRE
|
Commercial
real estate
|
|
CSM
|
Contractual service margin
|
|
Dec
|
December
|
|
ECL
|
Expected credit losses. In the income statement, ECL is recorded as
a change in expected credit losses and other credit impairment
charges. In the balance sheet, ECL is recorded as an allowance for
financial instruments to which only the impairment requirements in
IFRS 9 are applied
|
|
ECM
|
Equity
capital markets
|
|
ESG
|
Environmental, social and governance
|
|
EU
|
European Union
|
|
FVOCI
|
Fair value through other comprehensive income
|
|
GAAP
|
Generally accepted accounting principles
|
|
Galicia
|
Grupo Financiero Galicia
|
|
GDP
|
Gross domestic product
|
|
GPS
|
Global
Payments Solutions
|
|
Group
|
HSBC Holdings together with its subsidiary
undertakings
|
|
GTS
|
Global
Trade Solutions
|
|
Hang
Seng Bank
|
Hang Seng Bank Limited
|
|
HKEx
|
The Stock Exchange of Hong Kong Limited
|
|
Hong Kong
|
Hong
Kong Special Administrative Region of the People’s Republic
of China
|
|
HSBC
|
HSBC Holdings together with its subsidiary
undertakings
|
|
HSBC Bank plc
|
HSBC Bank plc, which includes the UK non-ring-fenced
bank
|
|
HSBC Holdings
|
HSBC Holdings plc, the parent company of HSBC
|
|
HSBC UK
|
HSBC UK Bank plc, also known as the ring-fenced bank
|
|
IAS
|
International
Accounting Standards
|
|
IFRS
Accounting Standards
|
International
Financial Reporting Standards as issued by the International
Accounting Standards Board
|
|
IWPB
|
International
Wealth and Premier Banking, a business segment
|
|
Jun
|
June
|
|
LCR
|
Liquidity coverage ratio
|
|
Long term
|
For our
financial targets, we define long term as five to six years,
commencing 1 January 2026
|
|
Medium term
|
For our
financial targets, we define medium term as three to five years,
commencing 1 January 2026
|
|
M&A
|
Mergers and Acquisitions
|
|
Net operating income
|
Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as
revenue
|
|
NII
|
Net
interest income
|
|
NIM
|
Net interest margin
|
|
NNM
|
Net new
money
|
|
PD
|
Probability
of default
|
|
POCI
|
Purchased or originated credit-impaired financial
assets
|
|
PRA
|
Prudential Regulation Authority (UK)
|
|
Prudential
rules
|
Refers to the UK Capital Requirements Regulation, the PRA Rulebook
and any laws, regulations, requirements, rules, guidelines,
standards and policies relating to capital adequacy, leverage and
liquidity adopted by the relevant regulators, as applicable, and
which are applicable to HSBC
|
|
Revenue
|
Net
operating income before change in ECL
|
|
RoE
|
Return on average ordinary shareholders’ equity
|
|
RoTE
|
Return on average tangible equity
|
|
RWA
|
Risk-weighted asset
|
|
SAB
|
Saudi Awwal Bank
|
|
Sep
|
September
|
|
UAE
|
United
Arab Emirates
|
|
UK
|
United
Kingdom
|
|
UK
Capital Requirements Regulation
|
Refers
to Regulation (EU) No. 575/2013, as amended or supplemented, as it
forms part of domestic law in the UK by virtue of the European
Union (Withdrawal) Act 2018, as amended
|
|
US
|
United
States of America
|
|
$m/$bn/$tn
|
United States dollar millions/billions/trillions. We report in US
dollars
|
|
Wealth
|
Wealth comprises our Investment Distribution, Insurance, Private
Bank and Asset Management businesses.
|
|
WTB
|
Wholesale Transaction Banking comprises our Global Foreign
Exchange, GPS, GTS and Securities Services businesses.
|
Click on, or paste, the following link into your web browser, to
view the associated PDF document
http://www.rns-pdf.londonstockexchange.com/rns/6042A_1-2026-10-27.pdf
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
HSBC
Holdings plc
|
|
|
|
|
|
|
By:
|
|
|
Name:
Angela McEntee
|
|
|
Title:
Group Company Secretary
|
|
|
|
|
|
Date:
27 October 2026
|