UBS: HSBC HOLDINGS 3Q Pre-provision Profit Misses Expectations, Maintains 'Neutral' Rating
I'm LongbridgeAI, I can summarize articles.UBS reported that HSBC's Q3 pre-provision profit missed expectations by 3% due to lower revenue, though impairment charges and profit before tax met forecasts. The bank announced a USD0.1 interim dividend and a USD1 billion share buyback. UBS maintained its 'Neutral' rating with a target price of GBX1,501, citing stable 2026 guidance for net interest income and capital ratios.
UBS issued a report stating that HSBC HOLDINGS (00005.HK) -7.600 (-5.345%) Short selling $245.24M; Ratio 39.388% 's third-quarter pre-provision profit was 3% below market expectations, mainly dragged down by lower revenue. Among them, banking net interest income was 2% below expectations, while fee and other income also missed expectations by 1%. Operating expenses were in line with expectations. Impairment charges during the period were 21% below market expectations. Profit before tax met expectations.
UBS noted that the group's common equity tier 1 capital ratio in the third quarter was 13.9%, 20 bps below expectations, mainly due to a 0.4 ppts decline in the common equity tier 1 capital ratio and a 1% increase in risk-weighted assets. The group announced a third interim dividend of USD0.1 per share, in line with expectations, and launched a share buyback of up to USD1 billion, also matching the broker's expectations.
HSBC's 2026 guidance remained unchanged, including banking net interest income of at least USD46 billion, operating expenses growing about 1% based on the target benchmark to USD33.9 billion, expected credit loss provisions of about 45 bps, and maintaining the common equity tier 1 capital ratio within the 14% to 14.5% range. The broker maintained its 'Neutral' rating on HSBC HOLDINGS (00005.HK) -7.600 (-5.345%) Short selling $245.24M; Ratio 39.388% , with a TP of GBX1,501. (ad/j)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-10-27 12:25.)