For the HSBC Q3 Profit Holdings plc announced a 14% decrease in pretax profit, mostly as a result of significant legal costs, but underlying performance was the lender’s justification for moderate hopefulness. HSBC Q3 Profit reported a pretax profit of about US$7.3 billion for the three months ending 30 September, down from the approximately $8.5 billion reported a year prior.
A legal accusation of about $1.1 billion resulting from a lawsuit related to the Bernard Madoff scam
Wealth and fee-based income also increased; the wealth industry reported an increase of nearly 30% over that time. Operating costs rose around 24%, reflecting legal fees, restructuring demands, and other increased expenditures, under pressure on HSBC’s cost base. Management, on the other hand, highlighted stability in the basic company. Citing trust in the policy rate, the bank restated its expectation that banking net interest income for full-year 2025 would reach at least $43 billion. Perspective over markets including Hong Kong and the United Kingdom, HSBC seeks full control of Hong Kong’s Hang Seng Bank
Chief Executive Georges Elhedery said the results reflected HSBC’s shift to a leaner, more nimble business strategy, notwithstanding historical obstacles. For investors and analysts, the quarter offers a study in contrasts. On the one hand, the legal and restructuring burdens underline the legacy risks still hanging over the bank. On the contrary, the momentum in interest-earning assets and wealth management indicates that the strategic refocus may be successful. HSBC moves through the remainder of 2025, attention will fall on how well the bank can manage costs, contain credit risk (particularly in property exposures) and fulfill its high NII recommendations.
