HSBC FY pretax profit $29.91B, est. $28.86B

HSBC FY pretax profit $29.91B, est. $28.86B

HSBC Reports FY Pretax Profit of $29.91 Billion, Exceeds Estimates

Hong Kong-based multinational banking giant HSBC Holdings PLC (HSBC) announced its full-year (FY) 2025 financial results on February 24, 2026, reporting a pretax profit of $29.91 billion, surpassing the estimated $28.86 billion projected by analysts. The results reflect improved performance across key business segments and regional markets, driven by cost discipline and recovering corporate and institutional client demand.

Total revenue for the year reached $54.3 billion, a 4.2% increase compared to the prior fiscal year. The growth was underpinned by stronger trading income in global markets and higher fees from wealth management services. Regional performance highlighted resilience in Asia-Pacific operations, where revenue rose 5% year-on-year to $21.8 billion, while European and North American divisions also posted modest gains.

HSBC's cost-income ratio improved to 48% in FY 2025, down from 51% in 2024, as the bank continued restructuring initiatives launched in 2023 to streamline operations and reduce overheads. The firm also reported a 12% reduction in credit impairment charges, attributed to tighter risk management and stabilizing economic conditions in core markets.

Despite the positive results, challenges persist. Regulatory pressures and geopolitical uncertainties in key markets, including China and the Middle East, remain risks to long-term growth. HSBC's CEO emphasized a strategic focus on digital transformation and sustainability-linked financing in upcoming earnings calls.

Analysts noted the results position HSBC to meet its 2026 capital adequacy targets, with a common equity tier 1 (CET1) ratio of 12.8% as of December 2025. The bank has maintained its dividend payout ratio at 40% of pretax profits, aligning with shareholder expectations.

Investors will closely watch HSBC's Q1 2026 guidance, particularly in light of ongoing interest rate volatility and potential regulatory changes in major markets.