HSBC bankers to share $3.9bn bonus pot, the highest in more than a decade | HSBC

Bankers at HSBC are set to split a $3.9bn (£2.9bn) bonus after Europe’s biggest lender reported better-than-expected annual results. This is the highest level in more than a decade.

The bonus pool for staff was 10% higher than the previous year, which the bank said it determined “based on a review of our performance against financial and non-financial measures”, and the bank’s chief executive salary also increased.

It comes as Georges Elhedery, who takes over as CEO in 2024, signals his sweeping turnaround at the lender is nearing its end.

Elhedery said the London-based bank, which makes most of its profits in Asia, “is evolving into a simpler, more agile, focused bank built for a rapidly changing world.” Elhedery received £6.6 million in 2025, up 18% on the previous year.

HSBC’s pre-tax profits fall 7% to $29.9 billion in 2025; but this was still $1bn higher than City analysts’ forecasts and follows an unusually strong 2024. This comes as the bank faced one-time charges of $4.9 billion last year.

The bank’s London-listed shares rose 5% in morning trade on Wednesday.

Elhedery, who has a seasoned career at HSBC, took the reins and announced an overhaul of the bank as he sought to save $1.5 billion in costs.

The bank said Wednesday it is on track to realize the savings six months ahead of schedule. Elhedery shook up the lender by reorganizing its business divisions in an east-west direction, breaking up smaller investment banking units in the US and Europe and cutting the ranks of senior executives.

These efforts have helped London-listed shares rise 50% in 2025 and are up another 10% since the beginning of the year, pushing the bank’s market value to nearly $300 billion.

HSBC took its subsidiary Hang Seng Bank private last year in a deal worth $13.7 billion. It said on Wednesday that its combined banking operations will target $900 million in pre-tax revenue and cost synergies by the end of 2028, but will also have $600 million in restructuring costs.

HSBC said it had raised its target for return on tangible equity, the key measure of profitability for banks, to “17 per cent or better” by 2028, from the “mid-teens” target it had set for the three years to 2027. Last year, this rate was 13.3 percent.

Last year’s charges included a $2.1 billion write-down on its assets at the China Communications Bank, which was partially damaged by a prolonged downturn in China’s real estate sector.

This led to a 66% drop in pre-tax profits for the mainland China business to $1.1 billion.

The bank also recorded regulatory provisions worth $1.4 billion, as well as restructuring and related costs of $1 billion.

The bank also said it would pay a final dividend of 45 cents per share, in addition to the 30 cents given at the beginning of the year. However, this was below the 87 cents total paid for 2024.

Analysts at Jefferies said investors will likely welcome strong results but may question predictions of just a 1% increase in costs for 2026 given the competitive landscape and the need to invest in AI technology.

In December, HSBC appointed former KPMG partner Brendan Nelson as chairman, following a lengthy search process that left a senior executive missing for months.

Reuters contributed to this report