HSBC 2025 full year earnings results

HSBC, Europe’s largest lender, announced its annual pre-tax profit of $29.91 billion on Wednesday; This beat forecasts, driven by strong performance in the wealth division and Hong Kong businesses.

While its annual profit fell by 7.4%, HSBC’s revenues increased by 4% compared to the previous year.

Here’s a comparison of HSBC’s full year results consensus estimates Compiled by the bank.

• Profit before tax: $28.86 billion versus $29.91 billion
• Revenues: $68.27 billion – $67.36 billion

The lender’s fourth-quarter pre-tax profit rose $4.5 billion to $6.8 billion from a year earlier, largely due to positive one-off items associated with business divestitures. Operating expenses increased 8% to $9.3 billion due to restructuring costs, technology investment and higher performance-related fees.

Its revenue in the last quarter rose 42% year-on-year to $16.4 billion.

HSBC Group CEO Georges Elhedery said that 2025 is the year of “decisive action and rapid implementation”, and that all four business areas of the bank are performing well and gaining strong momentum.

The lender now aims to deliver an average return on tangible equity (a measure of profitability) of 17% or more between 2026 and 2028, excluding notable items.

The results came close as the privatization of HSBC’s Hang Seng Bank was completed on January 26 and Hang Seng Bank’s shares were subsequently listed on the Hong Kong Stock Exchange.

HSBC announced last year that the deal would take place. add to earnings and it was a better use of capital than buybacks.

“We anticipate there will be revenue and cost synergies between the two brands, but expect this to occur gradually over the medium term,” said Kathy Chan, equity analyst at Morningstar.

The private offering is “an exciting opportunity to grow both Hang Seng and HSBC,” Elhedery said last October, adding that the bank would protect Hang Seng’s brand while investing to strengthen its capabilities.

At the beginning of the month, Bloomberg reported HSBC is preparing to give some bankers little or no bonuses as it moves towards a tougher, more performance-focused compensation model similar to its Wall Street peers.

The report, citing sources familiar with the matter, said the bank plans to use the upcoming bonus round to alienate underperformers in areas such as investment banking and asset management, potentially including chief executives.

While HSBC has not confirmed any final decisions on plans to shed underperformers, Morningstar’s Chan said he would not be surprised to see further headcount reductions given the Group’s broader aim to improve operational efficiency and deliver cost savings.

HSBC’s Hong Kong-listed shares lost 0.46 percent.