HSBC Holdings reported robust financial results for 2025, with its share price surging over 3% in Hong Kong to reach HK$140, nearing its all-time high. The bank's pretax profit came in at $29.9 billion, a 7% decline from 2024, primarily due to $4.9 billion in one-off charges related to business disposals in Canada and France, impairments on its Bank of Communications stake, and restructuring costs.
Excluding these notable items, pretax profit actually increased by $2.4 billion to $36.6 billion, with total revenue growing 4% to $68.3 billion. A key driver was the bank's wealth management business, which generated $2.1 billion in fees during Q4 2025, representing a 20% year-over-year increase. The business attracted over $78 billion in new deposits last year, bringing total deposits to $1.75 trillion.
CEO Georges Elhedery stated, "We are also targeting year-on-year revenue growth over the same period on the same basis, rising to 5% in 2028. We are becoming a simple, more agile, focused bank, one that moves with the speed our customers." The bank raised its return on tangible equity (RoTE) target to "17% or better" through 2028, up from 17.6% achieved in 2025.
However, HSBC announced it will postpone new share buybacks until its CET1 capital ratio recovers to the target range of 14–14.5%. This delay follows the January 2026 privatization of its Hong Kong subsidiary, Hang Seng Bank, which reduced the CET1 ratio by 110 basis points. The bank plans to rebuild capital organically and will assess buyback resumption on a quarterly basis.
For 2026, HSBC projects net interest income to exceed $45 billion, surpassing analyst estimates, with cost growth expected to remain modest at around 1%. The integration of Hang Seng Bank is expected to deliver $900 million in pretax revenue and cost synergies by 2028, offset by approximately $600 million in restructuring costs.
Investor reaction was positive, with HSBC shares in Hong Kong rising as much as 4.1% to HK$140.8 before settling at HK$139.9, a 3.4% gain. In London, shares closed at roughly 1,293 pence. Morgan Stanley raised its price target for HSBC's Hong Kong-listed shares to HK$149 from HK$138.1, maintaining an overweight rating.
