HSBC profits surge 32% as cost-cutting programme exceeds targets

Summarised from 2 outlets · 3 reports · Updated 27 Oct, 08:20 · Archive

HSBC's pre-tax profit leapt to $9.6bn in the third quarter, driven by cost-cutting that exceeded its two billion dollar programme.

HSBC reported pre-tax profits of $9.6 billion for the three months to September, up 32 per cent year-on-year. The gain was driven by higher income from interest rates, lower expected credit losses and smaller legal provisions than the same quarter last year. Operating expenses fell by $1.3 billion compared to the previous year.

The results reflect a major cost-cutting drive launched by chief executive Georges Elhedery in 2025, with an initial target to reduce the annual cost base by around $1.5 billion by the end of 2026. The bank has beaten this target, achieving $1.9 billion in cost savings and expecting to reach $2 billion by year-end.

As part of the results, HSBC announced it would return up to $750 million to shareholders through a new share buyback scheme. Mr Elhedery said: 'Our performance shows that in a more complex world clients continue to turn to us to navigate uncertainty and seize new opportunities. It also reflects consistent execution of our strategic priorities with pace, precision and discipline.'

HSBC profits surge 32% as cost-cutting programme exceeds targets — Image: Evening Standard

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How it is being reported

HSBC profits surge by a third as cost-cutting exceeds targetThe banking giant said it had made bigger savings than it originally set out to do.Evening Standard · 27 Oct, 08:31
HSBC profits surge by a third as cost-cutting exceeds targetThe banking giant said it had made bigger savings than it originally set out to do.Evening Standard · 27 Oct, 07:57
HSBC profits surge by a third as cost-cutting exceeds targetThe banking giant said it had made bigger savings than it originally set out to do.Independent Business · 27 Oct, 07:57

In this story: HSBC · Georges Elhedery

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