3Q 2026 update

“Our performance shows that in a more complex world clients continue to turn to us to navigate uncertainty and seize new opportunities.

“It also reflects consistent execution of our strategic priorities with pace, precision and discipline.

“As we simplify HSBC, we are creating greater capacity to invest, grow and deliver strong returns for our shareholders.”

Georges Elhedery, HSBC Group CEO
27 October 2026

We remain confident of achieving the Group financial targets we set out in February 2026, including a RoTE of 17% or better for 2026, 2027 and 2028, excluding notable items.

We continue to target year-on-year growth in revenue from 2026 to 2028, rising to 5% growth in 2028, excluding notable items and on a constant currency basis.

We also maintain our dividend payout ratio target basis of 50% in 2026, 2027 and 2028, excluding material notable items and related impacts.

This year, we continue to expect banking NII of at least $46bn in 2026.

We continue to expect ECL charges (expected credit losses and other credit impairment charges) as a percentage of average gross loans to be around 45bps (including held-for-sale loan balances) for 2026. Over the medium term, we retain our planning range of 30-40bps.

The Group remains on track to deliver year-on-year growth in operating expenses of approximately 1% in 2026 on a target basis.

As communicated at our 2026 interim results, should strong business performance continue, we may consider additional performance-related pay, which would increase 2026 target basis cost growth modestly.

Our target basis operating expenses measure excludes notable items and includes the impact of simplification-related saves associated with our strategic reorganisation.

We continue to assess the anticipated impact of the final Basel 3.1 standards on our capital. We expect, based on our latest modelling, that the impact on the Group CET1 capital ratio at 1 January 2027 will be a benefit of approximately 40-50bps.

We intend to continue to manage the CET1 capital ratio within our medium-term target range of 14% to 14.5%.

The increase in reported profit before tax was primarily due to a net favourable impact from notable items of $1.4bn, which reflected the non-recurrence of legal provisions in 3Q25.

The increase also reflected growth in banking NII (up $0.6bn to $11.7bn) and lower than expected credit losses and other impairment charges.

The decrease in our CET1 capital ratio reflected an increase in risk-weighted assets, a decrease in the value of certain debt instruments and the impact of the share buyback announced at our interim results, partly offset by regulatory profit.