Core Insights - HSBC Holdings is set to announce its third-quarter 2025 results, with expectations of a year-over-year decline in revenues and earnings [1][9] - The consensus estimate for earnings is $1.65 per share, reflecting a 2.9% decrease from the previous year, while sales are estimated at $16.83 billion, indicating a roughly 1% decline [2] Investment Banking Performance - Investment banking revenues are anticipated to have increased due to a rebound in global mergers and acquisitions, driven by a strong U.S. economy and favorable regulatory conditions [3][4] - The IPO market showed significant growth in the third quarter, contributing to increased equity and debt underwriting fees for HSBC [4] Trading Revenues - Client activity and market volatility were robust, influenced by uncertainties regarding tariffs and Federal Reserve policy changes, leading to solid performance in HSBC's trading business [5] Interest Income - Interest income is expected to have improved slightly, supported by a mixed approach to interest rate adjustments by central banks and a modest rise in loan demand [6][7] Expense Management - Despite HSBC's historical ability to control expenses, overall costs are projected to be high due to investments in market share growth and digital capabilities, alongside an organizational overhaul [7] Litigation Impact - HSBC will recognize a $1.1 billion provision related to litigation from the Luxembourg Madoff fraud, which is expected to affect the bank's common equity tier 1 ratio by approximately 15 basis points [9][10]