Goldman Sachs says HSBC’s third-quarter underlying profit and net interest income fell short

HSBC's third-quarter performance drew a below-expectations assessment

Goldman Sachs said HSBC Holdings’ third-quarter underlying profit before tax was below the bank’s expectations and that its net interest income performance was slightly disappointing. The report did not provide the underlying profit or net interest income figures in the reviewed material.

UBS assessed HSBC's second-quarter results and capital actions

UBS reported that HSBC’s adjusted pre-tax profit for the second quarter increased 13% year over year to $10.34 billion, beating market expectations by 5%, mainly because revenue was better than expected.

HSBC also announced a mid-term dividend of 10 cents per share and restarted a share-buyback program of up to $1 billion. UBS said the planned buyback was below its expectation of approximately $2 billion.

Full-year net interest income guidance increased

Management raised HSBC’s 2026 net interest income guidance from approximately $46 billion to at least $46 billion. UBS said the increase was smaller than expected and noted that HSBC’s three-year targets had not been adjusted.

UBS retained a neutral stance and 1,520-pence target

UBS maintained a “Neutral” rating on HSBC and a target price of 1,520 pence. The target corresponds to forecast valuation multiples of 11.5 times price-to-earnings and 2.2 times tangible book value for 2027.

UBS’s assessment covered HSBC’s second-quarter performance, while Goldman Sachs separately assessed the bank’s third-quarter results. The two reports therefore addressed different reporting periods.