HSBC (HSBA) Q1 2026 earnings summary

Executive summary

• Annualized return on tangible equity (RoTE) excluding notable items reached 18.7%, the highest in nearly 20 years.

• Profit before tax, excluding notable items, was $10.1 billion; revenue excluding notable items rose 4% year-on-year to $19.1 billion.

• Guidance for full-year banking net interest income (NII) upgraded to ~$46 billion, reflecting an improved rate outlook.

• Completed privatization of Hang Seng Bank and several business disposals, including UK Life, Sri Lanka, South Africa, and announced sale of Indonesia retail banking.

• All four business segments contributed to revenue growth and delivered annualized RoTE above 17% (excluding notable items).

Financial highlights

• Revenue excluding notable items increased 4% year-on-year to $19.1 billion; reported revenue up 2%.

• Banking NII increased to $11.3 billion year-on-year, but fell sequentially due to day count and one-offs.

• Dividend per share maintained at $0.10; targeting a 50% payout ratio for 2026 EPS, excluding material notable items.

• ECL charge for Q1 was $1.3 billion (52bps of loans); full-year guidance updated to 45bps.

• CET1 capital ratio at 14%, down from 14.9% sequentially, due to Hang Seng Bank privatization and Malta disposal.

Outlook and guidance

• Upgraded banking NII guidance to ~$46 billion for 2026, reflecting improved rate outlook.

• ECL charge guidance updated to 45bps, reflecting macro and market uncertainty.

• Cost growth expected at ~1% for 2026 versus 2025.

• CET1 capital ratio to be managed within 14-14.5% range.

• RoTE target of 17% or better, excluding notable items, reiterated for 2026-2028.