HSBC's full-year profit exceeded expectations, with strong performance in wealth and transaction banking businesses

LootboxPhobia · 2026-02-25T04:58:56+00:00

HSBC reports full-year pre-tax profit of $29.91 billion, exceeding expectations but below last year. Revenue grew by 4%, driven by wealth management and foreign exchange businesses. The board announced dividends and reaffirmed future return rate targets.

LootboxPhobia

2026-02-25 04:58:56

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HSBC (HK:0005) (LON:HSBA) announced its full-year profit on Wednesday, exceeding expectations. Strong performance in wealth management and corporate banking offset costs related to restructuring and strategic exits.

This Asia-focused bank reported a pre-tax profit of $29.91 billion for 2025, above the $28.86 billion consensus estimate compiled by Bloomberg, but below the $32.38 billion from the same period last year.

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This was due to $4.9 billion in unfavorable special items, including impairments related to holdings in Bank of Communications and legal and restructuring costs.

Excluding these items, pre-tax profit increased from $34.18 billion last year to $36.62 billion.

Revenue grew 4% to $68.3 billion, driven by growth in wealth management fees and foreign exchange income from corporate and institutional banking.

Pre-tax profit in the fourth quarter jumped from $2.3 billion last year to $6.8 billion, reflecting favorable changes in special items, after being impacted by losses from the sale of Argentine operations in the same period in 2024.

Full-year return on tangible equity was 13.3%, or 17.2% excluding special items.

The board declared a fourth interim dividend of $0.45 per share, bringing the total dividend for 2025 to $0.75 per share.

HSBC reaffirmed its target of at least 17% return on tangible equity from 2026 to 2028, citing growth momentum in its four core businesses and ongoing cost-saving initiatives.

For 2026, the bank expects net interest income of at least $45 billion, with credit losses around 40 basis points of loans.

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