compiled by the bank<\/a>.<\/p>\nProfit before tax: $7.3 billion vs. $5.98 billionRevenue: $17.8 billion vs. $17.05 billion<\/p>\n
The lender expects banking NII of $43 billion or more in 2025, citing rising confidence in the near-term trajectory for policy rates in key markets such as the United Kingdom and Hong Kong. It forecast double-digit percentage average annual growth in fee and other income from its wealth division over the medium term.<\/p>\n
The provisions include $1.1 billion set aside for potential payout over claims related to the Bernard Madoff investment fraud case.<\/p>\n
The Madoff case stems from a 2009 lawsuit by Herald Fund SPC against HSBC’s Luxembourg arm, seeking the return of securities and cash allegedly lost in the fraud.<\/p>\n
The court rejected the HSBC unit’s appeal on the securities restitution claim, though it accepted its challenge about the cash portion.<\/p>\n
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
“The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters,” HSBC Group CEO Georges Elhedery said.<\/p>\n
HSBC’s net interest income for the third quarter rose 15% year on year to $8.8 billion, according to the earnings release.<\/p>\n
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’s financial strength.<\/p>\n
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
Elhedery had said that the deal underscores HSBC’s confidence in Hong Kong’s role as a “leading global financial center. Hang Seng’s non-performing loan ratio rose to 6.69% in the first half of 2025 amid continued stress in the property sector.<\/p>\n
HSBC shares in Hong Kong were up 1.47% following the earnings release.<\/p>\n
\u2014CNBC’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…\n","protected":false},"author":2,"featured_media":210520,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[1532,116,28,122,8084,36696,138634,112],"class_list":{"0":"post-255922","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"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/255922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=255922"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/255922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/210520"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=255922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=255922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=255922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}