HSBC (HSBA.L) reported a decline in annual profits, in results released on Wednesday, but still beat expectations for the year.
The bank posted profit before tax of $29.91bn for 2025, down from $32.31bn for the previous year. However, this was ahead of expectations of $28.86bn, according to consensus estimates provided by the bank.
HSBC (HSBA.L) said that the decline in profits was mainly due to the impact of notable items, including impairment losses, restructuring and other costs relating to the simplification of its business.
Pre-tax profit in the fourth quarter came in at $6.8bn, which was down from $7.3bn for the previous three months, but up from the $2.28bn reported for the same period in 2024.
Revenue for the year increased by 4% to $68.3bn, which was also above estimates of $67.36bn. For the fourth quarter, revenue came in at $16.36bn, up from $11.56bn for the previous year.
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Net interest income (NII) – the difference between what the bank pays out to savers and receives from borrowers in interest – of $34.8bn was $2.1bn higher than 2024.
The bank’s return on tangible equity (RoTE) for the year was 13.3%, down from 14.6% for 2024, though excluding notable items this figure was 17.2%.
HSBC (HSBA.L) said its board had approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share for 2025, down from $0.87 for the previous year.
In terms of outlook, HSBC (HSBA.L) said it was targeting a RoTE of 17% or better for 2026, 2027 and 2028, excluding notable items. The bank said it was aiming for year-on-year growth in revenue from 2026 to 2028, rising to 5% growth in 2028 compared with 2027, excluding notable items and on a constant currency basis.
Georges Elhedery, group CEO of HSBC (HSBA.L), said: “Each of our four businesses performed well and we have strong momentum across the bank. That is why we are raising our ambition and targeting a 17% RoTE or better, excluding notable items, in each year from 2026 to 2028.”
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