HSBC shares fall about 7% as revenue misses despite 32% profit jump

Shares of HSBC Holdings, the global bank, fell by around 6% to 7% in London on Tuesday, October 27, 2026, after its third-quarter revenue came in below analysts' forecasts, even though pre-tax profit rose 32%. The bank reported revenue of about $18.6 billion for July to September, against expectations of about $19 billion, with slower growth in its wealth business. It also announced a share buyback of up to $1 billion and kept, but did not raise, its guidance for the year.

The reaction shows what investors were looking for. A 32% jump in profit sounds strong, but once one-off "notable items" are stripped out, profit rose 10%. Revenue, the money the bank earns before costs, is what investors watch for the direction of the business, and it missed. Slower growth in wealth management, the business of managing investments for well-off clients, added to the disappointment.

A share buyback means the bank uses spare capital to purchase its own shares from the market, which usually supports the share price by reducing the number of shares in circulation. HSBC's $1 billion buyback was not enough to offset the revenue miss on the day. Keeping guidance unchanged, rather than raising it, told investors that management does not expect the rest of the year to be better than planned.

HSBC's shares are listed in both London and Hong Kong, so the results moved two markets on the same day. The bank separates "notable items", one-off gains or losses such as those from selling or closing businesses, from its everyday earnings so that investors can compare quarters on a like-for-like basis. That is why it reports two profit figures, and why analysts tend to give more weight to the underlying one when judging whether the business itself is growing.

For Indian readers, the result is a reminder that big global banks are being judged as much on growth as on profit. Bank shares have been a large part of market gains in many countries, and a miss at one of the world's largest lenders can affect sentiment towards the sector more widely. This story does not offer any view on whether to buy or sell HSBC or any other bank share.

Short-term: HSBC's share price took a sharp one-day fall in both London and Hong Kong, as investors focused on weaker revenue and slower wealth growth rather than the profit increase.

Long-term: The bank will need to show that revenue and its wealth business can grow faster if investors are to reward its strategy, with buybacks offering only partial support.

Who is affected: HSBC shareholders, including pension and mutual funds in many countries, the bank's employees and customers, and investors watching global bank shares.

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