HSBC Holdings (LSE:HSBA) has reported a 32% rise in third-quarter pre-tax profit to $9.6bn on Tuesday, up from $7.3bn a year earlier, as the non-recurrence of $1.4bn in legal provisions booked in the third quarter of 2025 flattered the comparison.
The London-listed bank's profit after tax rose 38% to $7.6bn for the three months to 30 September, against the same period last year.
Stripped of notable items and measured on a constant-currency basis, profit before tax rose by $0.9bn to $10bn, a cleaner read on underlying momentum.
Revenue increased by $0.8bn to $18.6bn, driven mainly by growth in banking net interest income, alongside higher fee income in Wholesale Transaction Banking and Debt and Equity Markets.
Net interest income rose 6% to $9.3bn, reflecting deposit growth and the reinvestment of HSBC's structural hedge at higher yields, while banking net interest income climbed to $11.7bn.
Expected credit losses fell 17% to $0.8bn, helped by a smaller stage 3 charge tied to Hong Kong commercial real estate and lower charges in the UK and Mexico businesses.
Annualised return on tangible equity reached 17.7%, up from 12.3% a year earlier, or 18.2% excluding notable items.
Group chief executive Georges Elhedery said performance reflected "consistent execution of our strategic priorities with pace, precision and discipline" as the bank continues to simplify its structure.
For the first nine months of the year, pre-tax profit rose 26% to $29.2bn, lifted by a $3.7bn net favourable swing in notable items, including the non-recurrence of $2.1bn in dilution and impairment losses tied to HSBC's stake in Bank of Communications and the 2025 legal provisions.
Nine-month revenue rose 9% to $56.4bn, while operating expenses fell 3% to $26.2bn on a reported basis, though target-basis costs, which strip out notable items, were 2% higher at $25.5bn on higher technology spend and inflation.
The common equity tier 1 ratio fell to 13.9% at quarter-end, down 0.2 percentage points from 30 June, reflecting higher risk-weighted assets and the impact of the $1bn share buyback announced at the half-year results, which completed on 28 September.
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The Board approved a third interim dividend of $0.10 per share and HSBC said it intends to launch a further buyback of up to $1bn, expected to complete alongside the 2026 full-year results.
During the quarter, HSBC completed the sale of its Uruguay operations and announced the disposal of its Egyptian retail banking business, adding to previously announced exits from Singapore life insurance and Australian retail banking.
Wealth balances rose 3% to $1.6tn at 30 September compared with the end of 2025, with net new money of $105bn over the nine months, $95bn of it booked in Asia.
Management reiterated confidence in meeting the targets set out in February 2026, including a return on tangible equity of 17% or better through 2028, continued expectations for banking net interest income of at least $46bn this year, and an expected credit loss charge of around 45 basis points of average gross loans for 2026.