HSBC announces Q3 earnings per share of 28 cents, down from 34 cents a year ago.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Q3 Financial Performance: The company reported Q3 revenue of $17.8B, up from $17B last year, but profit before tax decreased to $7.3B due to increased operating expenses, including $1.4B in legal provisions.
Profit and Return Metrics: Profit after tax was $5.5B, down $1.2B from the previous year, while constant currency profit before tax excluding notable items rose by 3% to $9.1B.
Net Interest Margin and Capital Ratios: The net interest margin increased to 1.57%, benefiting from the non-recurrence of prior losses, while the common equity tier 1 capital ratio decreased slightly to 14.5% due to legal provisions.
Strategic Focus and Future Outlook: CEO Georges Elhedery emphasized the bank's commitment to becoming more agile and focused, expressing confidence in achieving mid-teens return on tangible equity targets for 2025, despite current challenges.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HSBC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HSBC
About HSBC
HSBC Holdings plc (HSBC) is a banking and financial services company. Its business segments include Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth and Premier Banking (IWPB). Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. Its UK business comprises UK retail banking and wealth (including first direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank. The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business. The IWPB segment comprises premier banking outside of Hong Kong and the UK, its global private bank, and its asset management, insurance and investment distribution businesses. Its customers worldwide through a network covering 58 countries and territories. Its customers range from individual savers and investors to companies, governments and others.
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.
Nvidia's Earnings Beat Expectations, Stock Drop Reflects Maturity
- Strong Earnings Report: Nvidia's data center revenue nearly doubled, with overall revenue exceeding expectations, as CEO Jensen Huang stated that demand has gone parabolic, indicating robust performance in the AI sector, even though the stock slipped in after-hours trading, reflecting market recognition of its maturity.
- Supply Chain Investment: Huang emphasized the company's heavy investment across its supply chain's five layers to support rapid growth, demonstrating Nvidia's leadership in the AI industry and confidence in future developments.
- Competitive Market Pressure: Despite Nvidia's strong performance in AI, Huang admitted that the company has largely conceded the Chinese market due to U.S. export restrictions accelerating China's drive for semiconductor self-sufficiency, which could impact its future market share.
- Asian Market Reaction: Although Nvidia's stock declined, Asian tech stocks surged in response to its earnings report, with Softbank's shares soaring 20%, reflecting strong investor interest in the AI sector and further energizing regional market activity.
See More
Volatility in UK Assets Amid Political Turmoil and Investment Opportunities
- Political Turmoil Impacting Markets: The recent volatility in UK assets, particularly the 10-year gilt yield nearing post-2008 highs, reflects market uncertainty stemming from Prime Minister Keir Starmer's questioned leadership and potential challenges from rival Andy Burnham.
- Investor Optimism on Large Caps: Despite the political upheaval, Citi analysts maintain a bullish outlook on the FTSE 100, citing its significant commodity and defensive exposure as a geopolitical hedge, indicating strong investor confidence in large-cap stocks.
- Opportunities in Small Caps: Jupiter Asset Management's Adrian Gosden highlights that while small and mid-cap stocks (SMIDs) face severe challenges, identifying financially sound companies could yield substantial returns, especially given the current pessimistic market sentiment.
- Attraction of SALO Businesses: Ben Needham from Ninety One notes that the market's harsh treatment of soft asset, low obsolescence SALO businesses has created attractive investment opportunities, particularly as many companies accelerate buybacks and cash returns, signaling strong value amidst the turmoil.
See More
Global Markets Under Pressure from Bond Market
- Bond Market Pressure: The U.S. 30-year Treasury yield peaked at 5.19% on Tuesday, the highest in nearly 19 years, while the 10-year yield reached 4.687%, leading to widespread declines in global stock markets, indicating the negative impact of rising yields on equities.
- Equity Market Declines: The S&P 500 and Nasdaq logged their third consecutive day of losses on Tuesday, reflecting investor concerns over high yields, with Asian markets also suffering declines, particularly Japan's Nikkei 225 and South Korea's Kospi.
- Geopolitical Developments: Russian President Vladimir Putin has invited Chinese President Xi Jinping to visit Russia next year, emphasizing the deep political mutual trust and strategic cooperation between the two nations during their meeting in Beijing, highlighting the unprecedented level of ties.
- Tech Sector Focus: Nvidia is set to report earnings after the market closes on Wednesday, with investors keen on its infrastructure buildout progress, while the company also plans to open a new research center in Singapore, further solidifying its presence in the Asia-Pacific market.
See More
Investment Risks and Opportunities Amid AI Boom
- Market Concentration Risk: Since the late 2022 release of ChatGPT, AI has dominated global markets, leading to significant investments in AI stocks, with TSMC, SK Hynix, and Samsung Electronics accounting for over half of the returns on the FTSE Asia ex-Japan index, prompting HSBC to warn of potential market dislocations.
- Forgotten Investment Opportunities: HSBC has identified ten overlooked companies in Asia, including Hong Kong Exchange, South Korean food manufacturer Samyang Foods, and Indonesian telecom provider PT Telkom, which have maintained high profitability while gaining market share.
- Fuyao Glass's Growth Potential: Fuyao Glass, the world's largest automotive glass manufacturer, holds about a 70% share of the Chinese market and is expanding internationally; HSBC analysts believe the market undervalues its growth trajectory and margin resilience amid shifting global competitive dynamics.
- WuXi AppTec's Strong Growth: WuXi AppTec, a China-based contract research and manufacturing organization, is projected to achieve 18%-22% revenue growth in 2026, driven by robust customer demand and global capacity expansion, with HSBC analysts suggesting this growth could last another two to three years.
See More
US Treasury Yields Enter Danger Zone Amid Inflation Fears
- Yield Surge: The 30-year US Treasury yield surged above 5.19% on Tuesday, marking the highest level since 2007, while the 10-year yield approached 4.69%, indicating market concerns over persistent inflation and hawkish rate expectations that could pressure equities and risk assets.
- Market Resilience: Despite the intensified selloff in government bonds, HSBC noted that robust corporate earnings growth and a relatively optimistic view on the Middle East conflict have kept markets resilient, although further increases in yields could lead to temporary declines in risk assets.
- Psychological Impact: The auction of the 30-year Treasury clearing above 5% is seen as a significant psychological threshold; according to Interactive Brokers' chief strategist, current market conditions are a
See More
Domestic Investors Support Indian Stock Market Amid Foreign Sell-Off
- Significant Role of Domestic Investors: Amid a $35 billion foreign sell-off, Indian institutional investors injected a net $91 billion into the equity markets last year, effectively preventing a 'freefall' in the stock market and demonstrating the resilience and potential of the domestic market.
- Surge in Investor Registrations: The Bombay Stock Exchange (BSE) saw 35 million new investor registrations over the past year, indicating a growing participation of the Indian population in capital markets, which further strengthens the market's foundation.
- Market Performance Comparison: Despite the BSE Sensex declining 11% year-to-date, domestic capital inflows remain robust, with total inflows in equity mutual funds reaching 384.4 billion rupees (nearly $4 billion) in April, marking a 58% increase from the previous year.
- Bearish Foreign Sentiment: Foreign investors maintain a pessimistic outlook on India due to rising global oil prices and economic impacts, while the lack of a strong AI ecosystem dampens India's competitiveness in the global market, leading to continued capital outflows.
See More
Nvidia's Earnings Beat Expectations, Stock Drop Reflects Maturity
- Strong Earnings Report: Nvidia's data center revenue nearly doubled, with overall revenue exceeding expectations, as CEO Jensen Huang stated that demand has gone parabolic, indicating robust performance in the AI sector, even though the stock slipped in after-hours trading, reflecting market recognition of its maturity.
- Supply Chain Investment: Huang emphasized the company's heavy investment across its supply chain's five layers to support rapid growth, demonstrating Nvidia's leadership in the AI industry and confidence in future developments.
- Competitive Market Pressure: Despite Nvidia's strong performance in AI, Huang admitted that the company has largely conceded the Chinese market due to U.S. export restrictions accelerating China's drive for semiconductor self-sufficiency, which could impact its future market share.
- Asian Market Reaction: Although Nvidia's stock declined, Asian tech stocks surged in response to its earnings report, with Softbank's shares soaring 20%, reflecting strong investor interest in the AI sector and further energizing regional market activity.
See More
Volatility in UK Assets Amid Political Turmoil and Investment Opportunities
- Political Turmoil Impacting Markets: The recent volatility in UK assets, particularly the 10-year gilt yield nearing post-2008 highs, reflects market uncertainty stemming from Prime Minister Keir Starmer's questioned leadership and potential challenges from rival Andy Burnham.
- Investor Optimism on Large Caps: Despite the political upheaval, Citi analysts maintain a bullish outlook on the FTSE 100, citing its significant commodity and defensive exposure as a geopolitical hedge, indicating strong investor confidence in large-cap stocks.
- Opportunities in Small Caps: Jupiter Asset Management's Adrian Gosden highlights that while small and mid-cap stocks (SMIDs) face severe challenges, identifying financially sound companies could yield substantial returns, especially given the current pessimistic market sentiment.
- Attraction of SALO Businesses: Ben Needham from Ninety One notes that the market's harsh treatment of soft asset, low obsolescence SALO businesses has created attractive investment opportunities, particularly as many companies accelerate buybacks and cash returns, signaling strong value amidst the turmoil.
See More
Global Markets Under Pressure from Bond Market
- Bond Market Pressure: The U.S. 30-year Treasury yield peaked at 5.19% on Tuesday, the highest in nearly 19 years, while the 10-year yield reached 4.687%, leading to widespread declines in global stock markets, indicating the negative impact of rising yields on equities.
- Equity Market Declines: The S&P 500 and Nasdaq logged their third consecutive day of losses on Tuesday, reflecting investor concerns over high yields, with Asian markets also suffering declines, particularly Japan's Nikkei 225 and South Korea's Kospi.
- Geopolitical Developments: Russian President Vladimir Putin has invited Chinese President Xi Jinping to visit Russia next year, emphasizing the deep political mutual trust and strategic cooperation between the two nations during their meeting in Beijing, highlighting the unprecedented level of ties.
- Tech Sector Focus: Nvidia is set to report earnings after the market closes on Wednesday, with investors keen on its infrastructure buildout progress, while the company also plans to open a new research center in Singapore, further solidifying its presence in the Asia-Pacific market.
See More
Investment Risks and Opportunities Amid AI Boom
- Market Concentration Risk: Since the late 2022 release of ChatGPT, AI has dominated global markets, leading to significant investments in AI stocks, with TSMC, SK Hynix, and Samsung Electronics accounting for over half of the returns on the FTSE Asia ex-Japan index, prompting HSBC to warn of potential market dislocations.
- Forgotten Investment Opportunities: HSBC has identified ten overlooked companies in Asia, including Hong Kong Exchange, South Korean food manufacturer Samyang Foods, and Indonesian telecom provider PT Telkom, which have maintained high profitability while gaining market share.
- Fuyao Glass's Growth Potential: Fuyao Glass, the world's largest automotive glass manufacturer, holds about a 70% share of the Chinese market and is expanding internationally; HSBC analysts believe the market undervalues its growth trajectory and margin resilience amid shifting global competitive dynamics.
- WuXi AppTec's Strong Growth: WuXi AppTec, a China-based contract research and manufacturing organization, is projected to achieve 18%-22% revenue growth in 2026, driven by robust customer demand and global capacity expansion, with HSBC analysts suggesting this growth could last another two to three years.
See More
US Treasury Yields Enter Danger Zone Amid Inflation Fears
- Yield Surge: The 30-year US Treasury yield surged above 5.19% on Tuesday, marking the highest level since 2007, while the 10-year yield approached 4.69%, indicating market concerns over persistent inflation and hawkish rate expectations that could pressure equities and risk assets.
- Market Resilience: Despite the intensified selloff in government bonds, HSBC noted that robust corporate earnings growth and a relatively optimistic view on the Middle East conflict have kept markets resilient, although further increases in yields could lead to temporary declines in risk assets.
- Psychological Impact: The auction of the 30-year Treasury clearing above 5% is seen as a significant psychological threshold; according to Interactive Brokers' chief strategist, current market conditions are a
See More
Domestic Investors Support Indian Stock Market Amid Foreign Sell-Off
- Significant Role of Domestic Investors: Amid a $35 billion foreign sell-off, Indian institutional investors injected a net $91 billion into the equity markets last year, effectively preventing a 'freefall' in the stock market and demonstrating the resilience and potential of the domestic market.
- Surge in Investor Registrations: The Bombay Stock Exchange (BSE) saw 35 million new investor registrations over the past year, indicating a growing participation of the Indian population in capital markets, which further strengthens the market's foundation.
- Market Performance Comparison: Despite the BSE Sensex declining 11% year-to-date, domestic capital inflows remain robust, with total inflows in equity mutual funds reaching 384.4 billion rupees (nearly $4 billion) in April, marking a 58% increase from the previous year.
- Bearish Foreign Sentiment: Foreign investors maintain a pessimistic outlook on India due to rising global oil prices and economic impacts, while the lack of a strong AI ecosystem dampens India's competitiveness in the global market, leading to continued capital outflows.
See More
