Customers are chasing higher-rate products, and that’s bad news for banks like HSBC

Customers are chasing higher-rate products, and that’s bad news for banks like HSBC Customers are chasing higher-rate products, and that’s bad news for banks like HSBC Customers in Hong Kong have been moving to higher-rate products from HSBC. Shares of banking giant HSBC Holdings fell as much as 7% on Tuesday as the lender revealed that customers are increasingly turning to higher-rate products. reported third-quarter net interest income 2% below expectations as the proportion of its deposits in time deposits — higher-rate products like certificates of deposit — reached 38% in Hong Kong, which is close to its historical peak around 40%. The bank saw the same behavior at work in the U.K., a market where it is choosing not to be as competitive to protect margins.

Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it. I agree to the Terms of Use, Privacy Notice and Cookie Notice. I would like to receive updates and special offers from Dow Jones and affiliates.

I can unsubscribe at any time. Neither Kaur nor any of the analysts on the call said that AI agents are driving any of the higher deposit-seeking behavior. The investor response came even as HSBC reiterated profit and revenue targets for this year, 2027 and 2028 and said it would buy back up to $1 billion in shares.

Copyright ©2026 MarketWatch, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Steven Goldstein is based in London and responsible for MarketWatch's coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage.

Follow Steve on Twitter: @MKTWgoldstein. Designer Betsey Johnson takes $7 million SoCal home off the market The 2027 Tesla Model Y L: The new 3-row version of the popular EV is tops in tech What gave this city its ‘best place to retire’ crown? You can actually afford to live there.

Nvidia, AMD and Broadcom could buy Meta shares as part of $35 billion stock offering Intraday Data provided by FACTSET and subject to terms of use. Historical and current end-of-day data provided by FACTSET. All quotes are in local exchange time.