HSBC Shares Drop as Third-quarter Banking Net Interest Income, Wealth Fees Miss Estimates

06:37 AM EDT, 10/27/2026 (MT Newswires) -- HSBC (HSBA.L) shares fell nearly 7% on Tuesday, after the UK-headquartered banking group's third-quarter results showed lower-than-expected banking net interest income alongside a miss on consensus estimates for wealth fee income. Analysts at RBC Capital Markets held a negative sentiment in their quick-take report, pointing to "weaker" underlying trends, including banking net interest income missing adjusted consensus by 2%. Overall adjusted fees and other income fell 1% short of expectations, amid a 4% miss in wealth and a 1% decline in other segments outweighing a 3% beat in wholesale transaction banking. However, even with these underlying pressures, RBC noted that adjusted pretax profit for the three months ended Sept. 30 of $10.02 billion came in line with market expectations and above last year's $9.11 billion. RBC said the result was driven by lower-than-expected credit impairments offset by softer banking net interest income. HSBC's reported attributable profit came in at $7.09 billion in the third quarter, up from the year-ago $4.87 billion. Net interest income climbed year over year to $9.31 billion from $8.78 billion, while net fee income rose to $3.57 billion from $3.51 billion. On shareholder returns, HSBC matched expectations by declaring a $0.10 per share quarterly dividend. The bank also announced a fresh $1 billion share buyback plan, below Visible Alpha consensus of $1.3 billion, set to launch shortly after the third-quarter report and finish ahead of the full-year 2026 announcement. Looking ahead, HSBC maintained its target of year-over-year revenue growth from 2026 to 2028, accelerating to 5% growth in 2028 on a constant currency basis excluding notable items. The banking group also maintained a 50% target dividend payout ratio for the three years.