HSBC reported a 32% rise in third-quarter pretax profit to $9.63 billion on October 27, while announcing a new share buyback as its results prompted fresh calls for higher bank taxes before the budget. The London-headquartered lender also said net interest income rose and that it remains on track for its longer-term targets.

Profit growth comes in just under forecasts

HSBC said profit before tax climbed from a year earlier as higher interest rates, lower loan losses and smaller legal provisions lifted results. Revenue rose to $18.6 billion from $17.8 billion a year ago, and net interest income — the gap between what banks earn on loans and pay on deposits — increased to $9.3 billion from $8.8 billion.

The latest quarter also reflected stronger fee income from HSBC’s corporate and institutional banking and wealth businesses. CNBC reported that the bank’s pretax profit came in at $9.63 billion, compared with a consensus estimate of $9.69 billion.

HSBC said it was maintaining its forecast for banking net interest income of at least $46 billion in 2026. It also kept its target for return on average tangible equity at 17% or higher for 2026 through 2028, excluding notable items.

Buybacks, dividends and costs stay in focus

The bank announced another share buyback of up to $1 billion and approved a third interim dividend of 10 cents a share. The Guardian reported that HSBC is returning $2.7 billion to shareholders in total, including the new buyback and an interim dividend that would distribute another $1.71 billion.

Operating expenses fell 12% to $8.8 billion, largely because legal provisions recorded a year earlier did not recur. HSBC said that, excluding notable items, expenses still rose because of inflation and higher spending on technology.

The bank said it expects operating expense growth of about 1% in 2026 on a target basis, though stronger business performance could push up pay costs. It also said it expects annual revenue growth through 2028, targeting 5% growth in 2028 versus 2027 on a constant-currency basis, excluding notable items.

Pressure builds on banks ahead of the budget

The results landed as Chancellor John Healey prepares his budget and faces fresh calls to ask lenders to pay more tax. The Trades Union Congress said the figures made it “blatantly obvious” banks can afford more, while the New Economics Foundation argued the chancellor should go further than simply restoring the bank surcharge to its previous level.

The TUC said a 16% surcharge could raise £24 billion over four years, while a 35% levy would raise £60 billion over the same period. NEF said restoring the surcharge to 8% would bring in just £1.8 billion a year and argued for clawing back what it described as a taxpayer subsidy through quantitative easing.

HSBC chief financial officer Pam Kaur told reporters the bank was encouraged by the government’s growth agenda and would respond to customer behaviour. She also declined to comment on press speculation about job losses, after the Financial Times reported earlier this month that HSBC was planning sweeping cuts in its UK wealth management business. Kaur said artificial intelligence would change some roles and create others, while the bank is hiring in multiple areas in Britain.

HSBC shares fell 2.95% in Hong Kong after the results were released.