HSBC has capped a challenging year with a robust final quarter, as the banking giant navigates costly restructuring efforts aimed at sharpening its global focus, according to its annual results. Group pre-tax profits for 2025 fell to $29.9 billion (£22.1 billion), a decline of $2.4 billion (£1.8 billion) on the previous twelve months, the lender stated.
The bank attributed the annual drop primarily to a $4.9 billion (£3.6 billion) adverse impact from a combination of factors, including significant legal provisions, costs associated with organisational simplification, and the sale of its French-retained portfolio of loans.
Profits after tax for the year followed a similar trajectory, decreasing by $1.9 billion (£1.4 billion) to $23.1 billion (£17.1 billion). However, the final quarter offered a counterpoint, with pre-tax profits surging by $4.5 billion (£3.3 billion) to $6.8 billion (£5 billion) compared to the same period in 2024.
Group chief executive George Elhedery framed the annual figures as part of a broader strategic transition. “We are becoming a simple, more agile, focused bank, one that moves with the speed our customers need to navigate the modern world,” he said, describing the underlying business performance as strong and citing maintained momentum.
Outlining future ambitions, Elhedery confirmed the bank is now targeting year-on-year revenue growth rising to 5% by 2028. “We are delivering growth, investing for growth and we are executing our strategy with discipline and precision,” he added, expressing confidence in the bank’s ability to continue delivering for shareholders.
