HSBC (HSBA) Q3 2025 earnings summary

Executive summary

• Achieved 3% year-over-year growth in revenue and profit before tax (excluding notable items), with annualized ROTE of 17.6% year-to-date and upgraded 2025 ROTE targets to mid-teens or better.

• Wealth fee and other income grew 29% year-over-year, with strong deposit inflows of $86 billion and robust performance in Asia.

• Announced intention to privatize Hang Seng Bank, aiming for operational efficiencies and growth in Hong Kong.

• Eleven business exits announced year-to-date, including Malta and Sri Lanka retail banking, to focus on higher-return areas.

• Reported profit before tax for 3Q25 was $7.3 billion, down year-over-year due to $1.4 billion in legal provisions and higher operating expenses.

Financial highlights

• Q3 revenue excluding notable items: $17.9 billion (+3% YoY); reported revenue: $17.8 billion (+4-5% YoY); Q3 profit before tax excluding notable items: $9.1 billion (+3% YoY); reported PBT: $7.3 billion (-15% YoY due to notable items).

• Net interest income for Q3 was $8.8 billion, up 15% year-over-year; net interest margin at 1.57%, up 11bps YoY.

• Customer deposit balances at $1.7 trillion, with $86 billion growth over 12 months.

• CET1 capital ratio at 14.5%; tangible net asset value per share: $9.22.

• ECL charge for Q3 was $1 billion (~40bps annualized of gross loans and advances), flat year-over-year.

Outlook and guidance

• Upgraded 2025 banking NII guidance to $43 billion or better.

• 2025 ROTE (excluding notable items) expected to be mid-teens or better.

• Targeting around 3% cost growth in 2025 compared to 2024.

• Dividend payout ratio for 2025 targeted at 50% of earnings per ordinary share, excluding material notable items.

• CET1 capital ratio target range maintained at 14%-14.5%, with temporary dip expected post-Hang Seng Bank privatisation.