Rubbish Check
Guardian Business · 27 October 2026
source“‘HSBC profits surge 32%, sparking fresh calls for bank taxes in the budget, business live’”
R5/ 10
Selective
Rubbish Rating — 1 = base fact, 10 = pure rubbish
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In short
Rubbish Talk rates the Guardian's claim that HSBC's "profits surge 32%" a 5/10 because the headline repeats HSBC's own reported pre-tax profit growth without noting that, excluding one-off notable items, the bank's underlying profit grew only 10% and its shares fell over 6% on the day.
The Verdict
Selective. The 32% figure is real and comes straight from HSBC's own release, so this isn't fabrication. But pairing that single flattering number with a call for bank taxes, while leaving out that most of the jump was driven by a one-off $1.4bn notable-items boost, gives readers a stronger impression of underlying bank health than the numbers support.
What actually happened
HSBC reported pre-tax profit of $9.6bn for Q3 2026, HSBC Holdings plc reported a strong third quarter of 2026, with profit before tax increasing by $2.3bn to $9.6bn, a 32% rise compared to the same period in 2025, largely due to a $1.4bn favourable impact from notable items. On an underlying basis stripping out those one-off items, profit before tax grew by 10% and revenue grew by 5% compared with 3Q25, on a constant currency basis and excluding notable items. The bank announced a $1bn share buyback and a shareholder payout, but its shares fell sharply on the day as HSBC's shares slid 6% today after its revenue undershot estimates and growth at its wealth business slowed.
Key facts
- Reported pre-tax profit: $9.6bn, up 32% year-on-year, per HSBC's own Q3 2026 release.
- Underlying (constant-currency, excluding notable items) profit growth: just 10%, with revenue growth of 5%.
- A $1.4bn favourable notable-items impact accounted for the bulk of the headline jump.
- Shares fell over 6% on the day as revenue missed analyst expectations and wealth growth slowed.
- $2.7bn returned to shareholders, including a $1bn buyback and a $0.1/share interim dividend.
- Barclays reported a comparable 12% profit jump the previous week, part of the sector-wide picture fuelling tax-hike calls.
What to watch for
Watch whether tomorrow's Budget coverage keeps citing the 32% figure as evidence banks "can afford" a tax rise, without the underlying-growth caveat. Also watch how HSBC's Q4 results treat the notable-items base effect: if next quarter's comparison reverts to the 10% underlying trend, headlines built on the inflated 32% framing will need correcting.
About this scoreThe R-Score is Rubbish Talk's editorial opinion on how far a headline's framing sits from what the underlying facts support. It is a judgement about presentation and emphasis, not an allegation that any outlet has acted dishonestly. Every figure we rely on is linked under Receipts so you can check it yourself.
