{"id":337588,"date":"2025-10-28T04:31:12","date_gmt":"2025-10-28T04:31:12","guid":{"rendered":"https:\/\/www.europesays.com\/us\/337588\/"},"modified":"2025-10-28T04:31:12","modified_gmt":"2025-10-28T04:31:12","slug":"hsbcs-third-quarter-profit-drops-14-beats-estimates","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/337588\/","title":{"rendered":"HSBC&#8217;s third-quarter profit drops 14%, beats estimates"},"content":{"rendered":"<p>Two HSBC bank logos are displayed on an office building in Mexico City, Mexico, July 25, 2025. <\/p>\n<p>Henry Romero | Reuters<\/p>\n<p>Europe&#8217;s largest lender HSBC on Tuesday beat third-quarter profit expectations as the bank&#8217;s net interest income rose while performance of its wealth segment was also robust.<\/p>\n<p>The bank&#8217;s profit before tax for the three months ended in September was $7.3 billion, down nearly 14% from a year ago due to higher operating expenses, namely from notable items, including legal provisions of $1.4 billion.<\/p>\n<p>Here are HSBC&#8217;s second-quarter 2025 results compared with consensus estimates<a href=\"https:\/\/www.hsbc.com\/investors\/investing-in-hsbc\/consensus-buyback-updates-and-analyst-coverage\" target=\"_blank\" rel=\"nofollow noopener\"> compiled by the bank<\/a>.<\/p>\n<ul>\n<li><strong>Profit before tax:<\/strong> $7.3 billion vs. $5.98 billion<\/li>\n<li><strong>Revenue:<\/strong> $17.8 billion vs. $17.05 billion<\/li>\n<\/ul>\n<p>The provisions include $1.1 billion set aside for potential payout over claims related to the Bernard Madoff investment fraud case.<\/p>\n<p>The Madoff case stems from a 2009 lawsuit by Herald Fund SPC against HSBC&#8217;s Luxembourg arm, seeking the return of securities and cash allegedly lost in the fraud.<\/p>\n<p>The court rejected the HSBC unit&#8217;s appeal on the securities restitution claim, though it accepted its challenge about the cash portion.<\/p>\n<p>HSBC said it plans to file a further appeal with the Luxembourg Court of Appeal and, if that fails, it will dispute the final amount in later proceedings.<\/p>\n<p><strong>&#8220;<\/strong>The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters,&#8221; HSBC Group CEO Georges Elhedery said.<\/p>\n<p>HSBC&#8217;s net interest income for the third quarter rose 15% year on year to $8.8 billion, according to the earnings release.<\/p>\n<p>The bank on Monday said the $1.1 billion provision will trim its Common Equity Tier 1, or CET1, capital ratio by roughly 15 basis points. The CET1 ratio is a key indicator of a bank&#8217;s financial strength.<\/p>\n<p>Earlies this month, HSBC announced plans to take its subsidiary Hang Seng Bank private, valuing it at over HK$290 billion ($37 billion).<\/p>\n<p>Elhedery had said that the deal underscores HSBC&#8217;s confidence in Hong Kong&#8217;s role as a &#8220;leading global financial center. Hang Seng&#8217;s non-performing loan ratio rose to 6.69% in the first half of 2025 amid continued stress in the property sector.<\/p>\n<p>\u2014CNBC&#8217;s Lim Hui Jie contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"Two HSBC bank logos are displayed on an office building in Mexico City, Mexico, July 25, 2025. Henry&hellip;\n","protected":false},"author":3,"featured_media":288057,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[259,133,64,81,13656,67107,121,135,67,132,68],"class_list":{"0":"post-337588","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-banks","9":"tag-breaking-news-markets","10":"tag-business","11":"tag-business-news","12":"tag-earnings","13":"tag-hsbc-holdings-plc","14":"tag-luxembourg","15":"tag-markets","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115449920881391229","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/337588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=337588"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/337588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/288057"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=337588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=337588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=337588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}