HSBC Sees Quarterly Profit Decline Due to $1.1 Billion Impact from Madoff Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
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Source: WSJ
Third-Quarter Profit Decline: HSBC Holdings reported a 21% drop in net profit for the third quarter, totaling $4.87 billion compared to the previous year.
Impact of Legal Provisions: The decline in profit was partly attributed to a $1.1 billion provision related to a lawsuit connected to Bernie Madoff’s Ponzi scheme.
Pretax Profit Decrease: The bank's pretax profit also fell by 14%, amounting to $7.3 billion for the same period.
Overall Financial Performance: The financial results indicate challenges for HSBC amid legal and operational pressures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
