HSBC's third-quarter profit drops 14%, but beats expectations on higher revenue, interest income

Europe's largest lender HSBC connected Tuesday bushed third-quarter nett expectations connected the backmost of gross growth, which included a emergence successful the bank's nett involvement income and a robust show successful its wealthiness segment.

The bank's nett earlier taxation for the 3 months ended successful September was $7.3 billion, down astir 14% from a twelvemonth agone owed to higher operating expenses, namely from notable items, including ineligible provisions of $1.4 billion.

Here are HSBC's second-quarter 2025 results compared with statement estimates compiled by the bank.

• Profit earlier tax: $7.3 cardinal vs. $5.98 billion
• Revenue: $17.8 cardinal vs. $17.05 billion

The net travel a time aft the slope said it volition admit a proviso of $1.1 cardinal successful its third-quarter results following a tribunal ruling successful Luxembourg related to the Bernard Madoff concern fraud case.

The lawsuit stems from a 2009 suit by Herald Fund SPC against HSBC's Luxembourg arm, seeking the instrumentality of securities and currency allegedly mislaid successful the fraud.

The tribunal rejected the HSBC unit's entreaty connected the securities restitution claim, though it accepted its situation astir the currency portion.

HSBC said it plans to record a further entreaty with the Luxembourg Court of Appeal and, if that fails, it volition quality the last magnitude successful aboriginal proceedings.

The slope said the $1.1 cardinal proviso volition trim its Common Equity Tier 1, oregon CET1, superior ratio by astir 15 ground points. The CET1 ratio is simply a cardinal indicator of a bank's fiscal strength.

—CNBC's Lim Hui Jie contributed to this report.