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
Should l Buy HSBC?
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.
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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.
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- Economic Slowdown: The Purchasing Managers' Index for March fell to its lowest level since October 2022, reflecting the adverse impact of Middle Eastern conflicts and rising energy costs on domestic demand, with the growth forecast for FY2027 facing considerable downside risks.
- Strategic Autonomy Constraints: India's efforts to balance its economic and energy needs are increasingly constrained by U.S. policies, particularly regarding energy supplies, which complicates its trade negotiations and energy procurement strategies.
- Market Uncertainty: While the Indian government claims that refineries are operating normally and crude inventories are adequate, experts warn that the expiration of the U.S. waiver on Russian oil could lead to rising prices, intensifying market pressures and forcing India to rely more on Russian crude amid supply shortages.
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- Global Coverage: The service is currently available in Hong Kong, Singapore, Luxembourg, and the UK, supporting multiple currencies including EUR, GBP, HKD, SGD, and USD, showcasing HSBC's strategic positioning in the global digital finance landscape.
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- Market Potential: This innovative service is expected to attract more clients seeking digital solutions, further solidifying HSBC's competitive position in the global financial services market, especially as digital currencies gain traction.
See More
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- 24/7 Transfers: TDS facilitates domestic and cross-border transfers 24/7, allowing clients to instantly transfer funds between treasury centers and subsidiaries, which improves working capital management and reduces operational complexity to meet clients' demands for faster, transparent liquidity management.
- Compatibility and Integration: The service is designed to integrate with clients' existing treasury and payment infrastructures, reflecting HSBC's commitment to innovation and compliance standards, aiming to streamline operations by reducing manual processing and enabling straight-through processing.
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