28 October 2025
If you are covering HSBC’s latest financial results, please find below a comment from Will Howlett, financials analyst at Quilter Cheviot:
“HSBC delivered a good set of results with strength across revenues, both net interest income and wealth, while loan losses are also slightly below expectations. Adjusted profit before tax for the third quarter is up 3% year on year to $9.1bn and around 9% ahead of consensus expectations thanks to that strength in revenues. The reported figures are, however, impacted by $1.4bn of charged charges relating to 'historical matters', including the Madoff settlement announced yesterday.
“Underlying revenues increased 3% (5% ahead of consensus) and there is strength in the right areas. Net interest income is up 3% on the quarter and benefiting from the rebound in HIBOR in Hong Kong and a driver behind the upgraded guidance for FY25. Fee income is particularly strong with Wealth called out again, up 29% over the year and following a rise of 22% in the second quarter. Wholesale Transaction Banking fell 4% with FX down 11% reflecting lower levels of volatility in the market.
“The quarterly dividend is unchanged, and the buyback is currently suspended as HSBC builds capital ahead of the Hang Seng buyout. Guidance for full year 2025 however is raised slightly. Return on tangible equity (excluding notable items) is now expected to be mid-teens or better, and Banking net interest income is expected to be around $43bn, up $1bn from the previous guide. All in all, a solid set of results, but there remain cleaner narratives out there in the financials sector, with Barclays and Standard Chartered continuing to execute their strategies well.”
