HSBC has reported strong profit growth for the first nine months of 2026, led by its main banking business and improved results in Hong Kong. The Hongkong and Shanghai Banking Corporation, the group’s largest earnings contributor, recorded a sharp rise in pre-tax profit as revenue increased and credit losses declined.
The bank’s pre-tax profit rose 26.6% year on year to US$18.78 billion, equal to about HK$146.48 billion, during the first three quarters. This unit accounted for 64.65% of the HSBC group’s total pre-tax profit.
Revenue also grew during the period. The bank reported a rise of 13.88% to US$30.16 billion, showing stronger income across its business activities.
The results highlight the importance of the main banking unit to HSBC’s overall performance. Its profit growth helped support the wider group’s earnings during the first nine months of the year.
The bank also recorded higher profit in the third quarter alone. Pre-tax profit for the three months rose 7.98% year on year to US$5.89 billion. While the increase was slower than the nine-month growth rate, it showed that the bank continued to deliver higher earnings.
HSBC’s Hong Kong business also reported positive results. Its pre-tax profit increased 11.57% to US$7.7 billion, or about HK$60.06 billion, in the first three quarters. The segment contributed more than 26.4% of the group’s total pre-tax profit on a constant currency basis.
Revenue from the Hong Kong business rose 6.07% to US$12.23 billion during the period. The increase points to continued income growth in one of HSBC’s key markets.
A further boost came from lower expected credit losses. These fell by 32% to US$788 million during the first nine months. The decline was linked to lower charges related to Hong Kong’s commercial real estate sector.
Expected credit losses are funds banks set aside to cover loans that may not be repaid. These costs can rise when borrowers face financial pressure or when property values fall. Lower charges can support profit, although they do not mean that all credit risks have disappeared.
The fall in credit loss charges suggests that the impact of the commercial property sector on the bank’s results eased during the period. Hong Kong’s property market has faced pressure from high borrowing costs, weak demand and concerns about the value of commercial buildings.
For banks with large property lending portfolios, changes in the sector can have a direct effect on earnings. When fewer funds are needed to cover possible loan losses, more income can remain in reported profit.
HSBC’s latest figures show that its main banking unit and Hong Kong operations both helped drive earnings higher. The main unit delivered stronger revenue and a sharp rise in pre-tax profit, while the Hong Kong business benefited from revenue growth and lower expected credit losses.
The figures also show the weight carried by these two businesses within the wider group. The Hongkong and Shanghai Banking Corporation accounted for nearly two-thirds of HSBC’s total pre-tax profit for the first nine months. Hong Kong added more than a quarter on a constant currency basis.
Revenue growth is an important part of the results because it shows how much income the bank generated before costs and other items were taken into account. Higher revenue can help support profit, but the final result also depends on operating expenses, loan losses and wider market conditions.
The lower credit loss charges in Hong Kong provided another source of support. However, commercial property risks remain an area that banks must watch closely, as changes in property prices and the ability of borrowers to repay loans can affect future results.
HSBC’s performance comes as global banks continue to respond to changes in interest rates, business demand and credit conditions. Results can vary across markets, making the strength of major banking units important to the group’s overall earnings.
The latest figures show that HSBC’s main banking business remains its largest source of profit. At the same time, its Hong Kong operations continued to make a strong contribution, with higher earnings and lower expected credit losses.
The results offer a positive picture of the bank’s performance during the first three quarters of 2026. Future earnings will depend on revenue trends, credit conditions and the health of key markets, including Hong Kong’s commercial property sector.
