HSBC Holdings Plunges 4.33% on Disappointing Mid-Year Earnings

On July 30, 2025, HSBC Holdings experienced a significant drop of 4.33% in pre-market trading, reflecting investor concerns over the company's recent financial performance.

HSBC Holdings released its 2025 mid-year financial results, which showed a decline in both revenue and profits. The company reported a pre-tax profit of $15.8 billion for the first half of the year, a decrease of $5.7 billion compared to the same period last year. Post-tax profit was $12.4 billion, down 30% year-over-year. Revenue for the period was $34.1 billion, a 9% decrease from the previous year. The net interest margin stood at 1.57%, down 5 basis points from the same period last year. The Common Equity Tier 1 capital ratio was 14.6%, down 0.3 percentage points from the end of 2024.

In the second quarter, HSBC's pre-tax profit was $6.3 billion, a 29% decrease year-over-year. Revenue for the quarter was $16.5 billion, also down year-over-year. The company's expected credit losses for the quarter were $1.1 billion, an increase of $0.7 billion from the same period last year.

The decline in profits was primarily due to a $2.1 billion impairment and dilution loss related to the company's stake in China's Bank of Communications. Additionally, a $3.6 billion gain from the sale of Canadian and Argentine banking operations in 2024 did not recur, further impacting the company's financial performance. Despite the challenges, HSBC's four main business segments remained profitable, with revenue growth in key areas such as Hong Kong deposits and international wealth management.

The board of directors approved a second interim dividend of $0.10 per share and announced a share buyback program of up to $3 billion, expected to be completed before the release of the third-quarter results.