HSBC Q3 2025 Earnings: Profit Decline Amid Legal Provisions and Strategic Restructuring

HSBC reported a Q3 2025 profit before tax of $7.3 billion, a $1.2 billion decline from Q3 2024, primarily due to $1.4 billion in legal provisions related to historical matters including the Madoff securities fraud. Despite this, revenue grew 5% to $17.8 billion driven by wealth management and banking net interest income. The bank upgraded its 2025 RoTE target to mid-teens or better, reflecting confidence in strategic execution. Key developments include a $3 billion share buyback completion, a proposed privatization of Hang Seng Bank (impacting CET1 ratio), and $1.5 billion in annual cost savings by 2026 through restructuring. Operating expenses rose 24% YoY to $10.1 billion, while customer lending and deposits showed modest growth. The filing also notes $1.5 billion in expected Q4 losses from strategic transactions and maintains a 50% dividend payout ratio target.