UK FTSE 100 falls as HSBC revenue miss weighs on banks

Traders Union
All News
Stocks
FTSE 100 falls on HSBC miss

Highlights

FTSE 100 drops 0.76% to 10,685.18 points, led by a 7% slide in HSBC shares after third-quarter revenue of $18.6 billion missed expectations.
Banking stocks fall sharply as Standard Chartered, NatWest Group, and Lloyds drop 1.1%–2.2%, dragging the banking index down 3.7% to a four-month low.
Informa cuts full-year revenue growth target to 3% from 6% due to Middle East security concerns, while Reckitt lowers annual net revenue outlook, sending its shares down 4.5%.

Banking losses and corporate updates

As reported by Reuters, the FTSE 100 falls 0.76% to 10,685.18 points by 0949 GMT, putting the index on course for its biggest one-day decline in about a month, while the FTSE 250 gains 0.16%. The move is driven mainly by weakness in lenders after HSBC shares drop 7%, their steepest one-day percentage fall since April 2025.

Europe's largest bank reports third-quarter revenue of $18.6 billion, below analysts' estimates of $19 billion, as a slowdown in its wealth business hurts performance. Standard Chartered, NatWest Group and Lloyds Banking Group also fall between 1.1% and 2.2%, leaving the banking index down 3.7% and at a four-month low.

Elsewhere, exhibitions group Informa slips 1% after cutting its full-year revenue growth guidance to 3% from 6%, citing security concerns in the Middle East that force the rescheduling of events in Saudi Arabia. Dettol maker Reckitt falls 4.5% after lowering its annual net revenue growth forecast, pulling the personal care, drug and grocery sector 1.8% lower into negative territory, while Computacenter rises 1.6% after Stifel raises its price target on the IT services provider.

Budget caution and external pressures

Broader market sentiment remains restrained ahead of Britain's budget due on Wednesday, with investors watching for key fiscal announcements at a time of high borrowing costs and elevated energy prices. The combination keeps risk appetite in check even as stock-specific earnings updates dominate trading.

Oil markets add another layer of pressure, with Brent crude up 0.4% on renewed Houthi attacks on Saudi Arabia, overshadowing optimism from talks in Tehran. Separately, British business minister Jonathan Reynolds says Britain and the EU are "finding a way through" concerns over the bloc's proposed "Made in Europe" rules, an issue that has raised uncertainty for UK manufacturers.

Our earlier report on the Bank of England’s assessment of the energy price shock highlighted Deputy Governor Sarah Breeden’s view that the UK economy has absorbed higher energy costs better than expected. The piece noted that supportive fiscal measures and central bank interventions helped steady markets, while policymakers remained focused on ongoing risks from inflation and market volatility.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.