← Back to Sardaana 24/7
HSBC shares slide about 7% after third-quarter revenue miss
Europe's largest lender reported pretax profit up 32% to $9.6 billion, in line with forecasts, but revenue of $18.6 billion missed estimates as wealth income stalled. A new $1 billion buyback did not stop the sell-off.
Shares in HSBC fell roughly 6–7% in London on Tuesday, dragging European bank stocks lower, after the lender’s third-quarter revenue disappointed investors.
The numbers
- Pretax profit rose 32% to $9.6 billion, broadly in line with analysts’ expectations.
- Revenue was $18.6 billion, short of forecasts of around $19 billion.
- Wealth revenue was flat year on year at about $2.7 billion, after growth of 15% and 23% in the two previous quarters.
- The bank announced a new $1 billion share buyback and a $0.10 dividend and reaffirmed its targets.
According to reports by Reuters and CNBC, slower growth in the wealth business and tougher competition for deposits weighed on income. The STOXX 600 banking index fell about 1.3%, and London’s FTSE 100 dropped around 1%, largely because of HSBC.
Also available in: Саха тылаРусскийEspañol中文Portuguêsالعربية