HSBC Holdings PLC (LSE:HSBA) shares rose 3% on Monday after the bank raised its full-year returns guidance, brushing aside a $1.1 billion provision linked to the Madoff securities fraud.
The group’s third-quarter underlying profit before tax rose 3% to $9.1 billion, ahead of forecasts, while revenue also climbed 3% to $17.9 billion.
Hargreaves Lansdown analyst Matt Britzman said the apparent weakness in headline figures “flips” when the one-off Madoff charge is excluded.
He said the results showed “the operational engine is clearly firing,” with net interest income increasing to $11 billion on stronger deposits and structural hedging, while wealth management fees improved as client activity returned.
HSBC raised its 2025 net interest income target to at least $43 billion, up from $42.5 billion, which Britzman described as “conservative” given rising Hong Kong rates and resilient deposit growth.
The lender’s upbeat tone and better-than-expected underlying performance lifted sentiment across the UK banking sector, helping offset lingering concerns over litigation costs and slowing global growth.
HSBC’s results suggest its core business remains in good health despite market volatility and regulatory headwinds — a reassuring sign for investors after several quarters of mixed performance.
The shares rose 28.5p to 1,029.8p.