HSBC reported full-year financial results showing pretax profit of $29.91 billion for 2025, topping an analyst consensus of $28.86 billion compiled by Bloomberg. The result was, however, lower than the prior year’s pretax profit of $32.38 billion.
Management said the full-year performance was affected by $4.9 billion of adverse notable items. Those notable items include impairments linked to its stake in Bank of Communications, as well as legal and restructuring costs. When those items are excluded, pretax profit increased to $36.62 billion from $34.18 billion a year earlier.
Revenue for the year rose 4% to $68.3 billion. HSBC cited growth in wealth fees and stronger foreign-exchange income within its corporate and institutional banking arm as contributors to the revenue improvement.
The fourth quarter showed a sharp improvement on the profit line. Pretax profit in the quarter was $6.8 billion, up from $2.3 billion in the same period a year earlier. The bank said this reflected a favourable swing in notable items after the 2024 period was affected by losses related to the Argentina disposal.
On returns, HSBC reported a return on tangible equity of 13.3% for the year. Excluding notable items, the return on tangible equity was 17.2%.
Shareholders will receive a fourth interim dividend of $0.45 per share, bringing total dividends for 2025 to $0.75 per share.
The bank reaffirmed strategic targets for the 2026-28 period, reiterating a target of at least 17% return on tangible equity from 2026 to 2028. HSBC attributed those targets to momentum across its four core businesses and to continued simplification savings.
Looking ahead to 2026, the bank set an expectation for banking net interest income of at least $45 billion. It also flagged anticipated credit losses of about 40 basis points of loans for 2026.
Contextual notes
- The reported full-year pretax profit of $29.91 billion exceeded the $28.86 billion analyst consensus but was down from $32.38 billion a year earlier.
- Notable items of $4.9 billion reduced headline results; excluding these items, pretax profit rose to $36.62 billion from $34.18 billion.
- Revenue grew 4% to $68.3 billion, supported by wealth fees and corporate foreign-exchange income.
This set of results highlights the interplay between recurring revenue streams such as wealth management and transactional banking, and one-off charges tied to strategic choices and legal matters. The bank’s guidance for 2026 and reiterated medium-term targets provide a framework for investors and analysts to assess operating performance against the backdrop of simplification efforts and capital return expectations.