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HSBC lifts returns target as strong underlying 2025 performance offsets one-off charges

Story Highlights
  • HSBC delivered stronger underlying 2025 profits and revenue, with RoTE excluding notable items rising to 17.2%.
  • Despite significant one-off charges, HSBC expanded lending and deposits, held capital strong, and raised its RoTE ambitions through 2028.
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HSBC lifts returns target as strong underlying 2025 performance offsets one-off charges

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The latest announcement is out from HSBC Holdings ( (GB:HSBA) ).

HSBC reported 2025 results marked by strong underlying performance despite lower reported profit before tax of $29.9bn, down $2.4bn due to $4.9bn of adverse notable items including BoCom-related losses, French portfolio reserve recycling, legal provisions and restructuring costs. Excluding notable items and on a constant currency basis, profit before tax rose to $36.6bn, revenue increased 4% to $68.3bn, RoTE improved to 17.2%, and the bank expanded lending and deposits while maintaining a 14.9% CET1 ratio.

Management highlighted robust growth in wealth and wholesale transaction banking, higher net interest income aided by structural hedge reinvestment, and disciplined cost control with target-basis expenses up 3% despite heavy investment in technology and inflationary pressures. HSBC raised its ambition to target a 17% or better RoTE and steady revenue growth through 2028, signalling confidence in its simplified, more agile operating model and its ability to continue delivering capital returns, including a total 2025 dividend of $0.75 per share.

More about HSBC Holdings

HSBC Holdings plc is a global banking and financial services group headquartered in London, with shares listed in Hong Kong and other major exchanges. The bank operates across four main businesses, including wealth management, corporate and institutional banking and retail banking, with a strong presence in Hong Kong, the UK and key international markets.

Find detailed analytics on HSBA stock on TipRanks’ Stock Analysis page.

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