HSBC Profit Jumps 32 Percent Yet Shares Slide on Missed Estimates

The bank’s revenue grew 5 percent to $18.62 billion, trailing the $19 billion target. A key drag on investor sentiment was the stagnation of the wealth management division, which pulled in $2.7 billion. This follows two previous quarters of double-digit growth, signaling a potential cooling in a core growth area. Gains were instead anchored by net interest income, which rose 6 percent to $9.31 billion, aided by favorable deposit yields and hedging.

Operational efficiency improved as the cost-income ratio tightened to 47.4 percent, down from 56.6 percent. Credit impairment charges also dropped 17 percent to $832 million, reflecting lower risk in Hong Kong commercial real estate and reduced exposure in the UK and Mexico. CEO Georges Elhedery continues to push a restructuring plan that emphasizes core Asian and British markets while automating wealth management advisory roles.

Despite the market sell-off, the board signaled confidence by announcing a $1 billion share buyback and a third interim dividend of 10 US cents per share. The bank maintains its full-year guidance, projecting net interest income of at least $46 billion and targeting a return on tangible equity of at least 17 percent through 2028.