HSBC’s profit after tax down 17.91% to $5.5b in Q3

Operating expenses rose, whilst banking NII rose and wealth performance was strong.

HSBC’s profit after tax was 17.91% lower in Q3 2025 compared to a year earlier on higher operating expenses, although net interest income (NII) and wealth performance strengthened.

Profit after tax was $5.5b during the quarter, a $1.2b decline compared to Q3 2024, the bank said in its Q325 earnings report released on 28 October.Its profit before tax of $7.3b in Q3 was 14.12% or $1.2b lower compared to the same quarter in 2024.

The reduction reflected an increase in operating expenses, HSBC said, mainly from notable items in Q3, including legal provisions of $1.4b.

This was partly offset by revenue growth, which included an increase in banking NII and a strong performance in wealth.

NIII rose 15% to $8.8b in Q3, which included a benefit from non-recurrence of a $0.3b loss in Q3 2024 on the early redemption of legacy securities.

In contrast, fee and other income fell in the global foreign exchange and in the debt and equity markets of HSBC’s corporate and institutional banking (CIB) segment.

Revenue for Q3 rose by 5% to $17.8b compared to a year earlier. HSBC noted growth in its fee and other income in the international wealth and premier banking (IWPB), and Hong Kong business segments.

Expected credit losses (ECL) of $1b were stable compared with Q3 2024, according to HSBC.

Operating expenses were $10.1b, or 24% higher compared to the same quarter a year earlier.

Common equity tier 1 (CET1) capital ratio is 14.5%, a 0.1 percentage point (ppt) decline compared to Q2 2025.

9M 2025 profit after tax down $6.5b
For the first nine months of 2025, HSBC’s profit after tax has decreased by $6.5b to $17.9b compared to the same period in 2024.

HSBC said that this was partly due to its non-recurring net gains in 2024 related to its disposals in Canada and Argentina, as well as the recognition of dilution and impairment losses related to its associate Bank of Communications.

It also recorded $1.4b in legal provisions, and restructuring and other related costs of $0.8b during the nine-month period.

Revenue declined 4% to $51.9b.

Net interest income rose by $1.1b to $25.6b, whilst net interest margin was 1.57%.