To The Moon

According to a research report released by UBS, HSBC Holdings PLC (HSBC) reported third-quarter pre-provision profit that fell short of market expectations, and the bank has maintained its "Neutral" rating on the stock.

The third-quarter pre-provision profit came in 3% below market consensus, primarily dragged down by a decline in revenue, with net interest income falling 2% short of expectations and fee and other income also missing by 1%, while operating expenses were in line with forecasts.

Impairment provisions for the period were 21% lower than market expectations. Profit before tax was in line with consensus.

UBS noted that the group's third-quarter common equity tier 1 capital ratio stood at 13.9%, 20 basis points below expectations, mainly due to a 0.4% decline in the CET1 ratio and a 1% increase in risk-weighted assets.

The group announced a third interim dividend of $0.10 per share, in line with expectations, and launched a share buyback of up to $1 billion, which also matched the bank's forecasts.

HSBC's 2026 guidance remains unchanged, including banking net interest income of at least $46 billion, operating expenses growing approximately 1% to $33.9 billion on a targeted basis, expected credit loss provisions of around 45 basis points, and a common equity tier 1 capital ratio maintained within the 14% to 14.5% range.