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, excluding notable items.

• Return on tangible equity reached 17.2%, meeting or exceeding mid-teens targets across all four global businesses.

• 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.

• Strategic priorities focused on simplification, customer-centricity, and sustainable growth, with $1.2 billion in annualized simplification savings realized.

Financial highlights

• Declared ordinary dividends of $0.75 per share, a 14% increase year-over-year.

• Deposits grew by $78 billion year-over-year to $1,787 billion, with strong inflows in Hong Kong.

• Loan book grew by 2% to $988 billion, with growth in the U.K., CIB, and IWPB, partially offset by muted demand in Hong Kong.

• Cost of risk was 39 basis points, in line with guidance, and Stage 3 balances rose slightly to 2.5% of customer loans.

• 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 approach 5% by 2028, excluding notable items.

• Targeting return on tangible equity of 17% or better annually through 2028.

• 2026 banking NII guidance set at a minimum of $45 billion.

• Cost growth guided at 1% for 2026.

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