STOCKS | HSBC PROFITS SURGE 32% — SO WHY IS THE STOCK FALLING 5%?
One of the world's biggest banks just delivered a surprising earnings reaction.
TODAY, OCTOBER 27:
💰 Q3 Pretax Profit: $9.6 BILLION
📈 Reported Profit Growth: +32% YoY
📊 Underlying Pretax Profit Growth: +10%
💰 New Share Buyback: Up to 1 BILLION
🔴 Hong Kong Shares: Approximately -5% intraday
Yes, profits surged. But investors are selling.
HERE'S WHAT WALL STREET IS WATCHING.
HSBC's wealth-business revenue remained flat at $2.7 billion.
Compare that with year-over-year growth of 15% in Q1 and 23% in Q2.
That's a significant slowdown.
And there's another important detail.
The headline 32% profit increase benefited from the absence of major legal provisions recorded last year.
Excluding notable items, pretax profit growth was 10%, not 32%.
WHY DOES THIS MATTER?
Banks can deliver strong headline earnings while investors question the sustainability of future growth.
HSBC also reported a 17% decline in expected credit losses to $800 million.
But slowing wealth revenue raises questions about future fee income.
STOCKS TO WATCH:
$HSBC — HSBC's NYSE-listed ADR
$0005.HK — HSBC Hong Kong shares
$HSBA.L — HSBC London shares
$JPM •
$C — Major banking peers
WHAT TO WATCH NEXT?
Will HSBC's wealth division return to growth?
Can the bank sustain its profitability targets through 2028?
Will today's investor briefing ease concerns?
And how will HSBC's U.S.-listed shares react when Wall Street opens?
THE BIG QUESTION:
If a bank reports 32% profit growth and announces another
$1 billion buyback...
WHY ARE INVESTORS STILL SELLING?
Because markets don't just reward yesterday's profits.
THEY PRICE TOMORROW'S GROWTH.
#Stocks #HSBC #JPM #StockMarket