HSBC Shares Drop After Revenue Misses Expectations

HSBC shares saw a sharp decline after the bank released its third-quarter results. The stock fell 6.5% in London and 2.95% in Hong Kong. This movement reflects disappointment with revenue figures which came in 2% below market estimates.

Pre-tax profit reached $9.6 billion. This figure represents a 32% increase compared to the same period last year. The result was boosted by the absence of legal provisions that weighed on the previous balance sheet.

Total revenue rose to $18.6 billion from the $17.8 billion recorded a year earlier. The bank also saw 6% growth in net interest income. This gain was supported by increased deposits and the reinvestment of structural hedges at higher rates.

To offset the performance, the institution announced a new share buyback program of up to $1 billion. The bank also approved a third interim dividend payment of 10 cents per share. The target for return on tangible equity remains at 17% or higher through 2028.

Instability in major global financial institutions may increase risk aversion in equity markets. This scenario tends to boost demand for safe-haven assets and influence currency volatility for the dollar against emerging market currencies.