HSBC Approves $1.71 Billion Dividend, Plans $1 Billion Share Buyback
Key Facts
HSBC’s board approved a third interim dividend for 2026 of $0.50 per American depositary share on October 27, with a total expected payout of about $1.71 billion. The dividend will be paid on December 17 to shareholders of record on November 6. The ex-dividend date is November 5 for ordinary shares listed in London, Hong Kong and Bermuda, and November 6 for American depositary shares in New York. The announcement provides a cash return to shareholders alongside a new share buyback plan, while third-quarter results showed revenue growth and lower credit loss charges.
HSBC said it intends to launch a share buyback program worth up to $1 billion, which it expects to complete by the announcement of its 2026 full-year results. The program follows the bank’s completion on September 28 of a previous buyback of the same value, announced alongside its interim results. The bank is therefore combining a cash dividend with a buyback as part of its capital return decisions. Chief Executive Georges Elhedery said in his shareholder letter following the first-half results that the bank had resumed buybacks after suspending them following the announcement of the privatization of Hang Seng Bank. Elhedery described the bank’s performance at the time as enabling it to continue investing in growth while maintaining financial strength and cost discipline.
HSBC’s revenue rose by $0.8 billion year on year to $18.6 billion in the third quarter of 2026. The bank attributed the increase mainly to growth in net interest income. Higher fee income and other revenue in corporate and institutional banking, debt and equity markets, and wealth management also contributed. Net interest income was $9.3 billion, up $0.5 billion, or 6%, from the third quarter of 2025. The bank linked the improvement to deposit balance growth and the reinvestment of structural hedges at higher yields.
Expected credit losses and other impairment charges fell to $0.8 billion, down $0.2 billion, or 17%, year on year. The bank said the decline included lower stage-three charges related to commercial real estate in Hong Kong, as well as lower charges in Britain and Mexico. The third-quarter improvement in revenue and lower charges followed a strong first half of the year. In that period, profit before tax rose 23% to $19.5 billion, while revenue increased 11% to $37.7 billion compared with the same period in 2025. HSBC attributed first-half growth to a positive impact from notable items, growth in net interest income and fee income.
In its previous guidance for 2026, HSBC expected net interest income to be at least $46 billion, based on favorable interest rate expectations, while acknowledging that the environment remained volatile and uncertain. Elhedery said in the first-half results that the bank was delivering its strategic priorities “with pace, precision and discipline.” The guidance provides an indicator of one of the areas investors are monitoring in the bank’s performance during the remainder of the year. Market data also showed HSBC shares falling from a close of $92.74 on October 20 to $91.17 on October 26. The bank is scheduled to announce its 2026 annual results on February 23, 2027.