Goldman Sachs Says HSBC Holdings' Third-Quarter Underlying Pre-Tax Profit Missed Its Forecast, With Net Interest Income Slightly Disappointing

Stock News10-27 16:30

According to a research report from Goldman Sachs, HSBC Holdings (00005) reported third-quarter underlying pre-tax profit that came in below the bank's expectations, while net interest income was slightly disappointing.

The company's third-quarter underlying pre-tax profit reached US$10 billion, about 4% below Goldman Sachs' forecast but in line with market consensus.

Banking net interest income was 3% below Goldman Sachs' estimate and 2% below market expectations, while non-net interest income was 3% below Goldman Sachs' forecast and 1% below market consensus.

Goldman Sachs noted that net interest income was somewhat disappointing, as intensified deposit competition in Hong Kong and the United Kingdom offset the benefits of rising interest rates and strong loan growth.

The third-quarter common equity tier 1 capital ratio stood at 13.9%. The group declared a third interim dividend of US$0.10 per share and launched a share buyback of up to US$1 billion, exceeding Goldman Sachs' expectation of US$500 million.

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