What Happened
HSBC has reported a pre-tax profit of $29.91 billion (£22.1 billion) for the year 2025, marking a decline of 7.4% compared to the previous year. This drop of $2.4 billion (£1.8 billion) is attributed to various factors, including $4.9 billion (£3.6 billion) in adverse impacts from legal provisions, organizational simplification, and the sale of its French-retained loan portfolio. Despite the overall decline, the bank’s revenue increased by 4% year-on-year, reaching $68.27 billion (£52.5 billion), surpassing analysts’ expectations.
Why It Matters
The results indicate a mixed performance for HSBC, with significant challenges in profit generation overshadowed by growth in revenue, particularly in its wealth management and Hong Kong operations. Group CEO Georges Elhedery emphasized that 2025 was a year of decisive action, highlighting the bank’s strong momentum across all business segments. The bank aims for a return on average tangible equity of 17% or more between 2026 and 2028, up from 13.3% in 2025.
What’s Next
Looking ahead, HSBC plans to focus on maintaining its growth trajectory, targeting a year-on-year revenue increase of 5% by 2028. The bank is committed to becoming a more agile and focused institution, adapting to the evolving needs of its customers. Elhedery expressed confidence in the bank’s strategy and its ability to deliver value to shareholders in the coming years.
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