HSBC (HSBA) Q4 2025 Fixed Income earnings summary

Executive summary

• Achieved $71 billion in revenue for 2025, up 5% year-over-year, and record profit before tax of $36.6 billion, up 7% year-over-year, with all four global businesses delivering mid-teens or better ROTE.

• Completed the privatization of Hang Seng Bank ahead of schedule, unlocking $0.5 billion in expected synergies by 2028 and strengthening the position in Hong Kong.

• Announced or completed 11 business exits in 2025, supporting simplification and a more agile, customer-centric organization, with $1.2 billion in annualized simplification savings realized.

• Strategic priorities focused on simplification, customer-centricity, and sustainable growth, with significant cost savings and reinvestment in technology and innovation.

Financial highlights

• Group revenue reached $71 billion, with banking NII at $44.1 billion; profit before tax was $36.6 billion, a 7% increase year-over-year.

• Deposits grew by $78 billion year-over-year to $1,787 billion, with notable strength in Hong Kong; customer loans increased 2% year-over-year to $988 billion.

• Return on tangible equity was 17.2%, meeting the mid-teens target; reported ROTE was 13.3%.

• Ordinary dividends declared at $0.75 per share, up 14% from the prior year.

• Costs increased 3% year-over-year, in line with guidance, with $1.2 billion annualized simplification savings actioned.

Outlook and guidance

• Revenue growth expected to rise towards 5% by 2028, excluding notable items; targeting ROTE of 17% or better each year through 2028.

• 2026 banking NII guidance set at a minimum of $45 billion; cost growth guided at 1% for 2026.

• ECL charge guidance of ~40bps for FY26.

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

• Continued investment in digital assets and AI to drive innovation and operational efficiency.