HSBC Holdings Reports Strong Wealth Growth Amid Profit Decline

HSBC Holdings plc ( (HSBC) ) has released its Q1 earnings. Here is a breakdown of the information HSBC Holdings plc presented to its investors.

HSBC Holdings plc is a global banking and financial services organization headquartered in London, with a focus on providing international financial services across various sectors, including retail banking, wealth management, and corporate and institutional banking.

In its first-quarter earnings report for 2025, HSBC Holdings plc reported a decrease in profit before tax to $9.5 billion, down by $3.2 billion compared to the same period in 2024, primarily due to the non-recurrence of gains from previous business disposals. Despite this, the company demonstrated strong performances in its Wealth and Corporate and Institutional Banking segments.

Key financial metrics indicated a 15% decrease in revenue to $17.6 billion, attributed to business disposals in Canada and Argentina. However, excluding notable items, revenue saw an increase driven by growth in Wealth and Foreign Exchange markets. The company’s net interest income fell slightly due to lower interest rates but was offset by strategic hedging benefits. Operating expenses remained stable, while expected credit losses rose due to geopolitical tensions and trade tariffs.

Looking forward, HSBC’s management remains confident in navigating economic uncertainties, targeting a mid-teens return on average tangible equity over the next three years. The company plans to continue its focus on strategic growth areas, including wealth management in Asia and enhancing its transaction banking capabilities.

Overall, HSBC Holdings plc is poised to manage the challenges posed by the current macroeconomic environment, leveraging its strong revenue streams and conservative credit risk approach to support its clients and sustain growth.