Full Year 2025 HSBC Holdings PLC Earnings Call Transcript
Key Points
- HSBC Holdings PLC (HSBC) reported a 5% growth in group revenues for 2025, with profit before tax rising 7% to a record $36.6 billion.
- The company achieved a return on tangible equity of 17.2%, meeting its mid-teens or better target.
- Deposit balances grew by 5%, contributing significantly to the bank's net interest income (NII).
- HSBC Holdings PLC (HSBC) announced a 14% increase in its full-year ordinary dividend per share to $0.75.
- The company is investing in strategic long-term growth, including the $13.7 billion privatization of Hang Seng Bank, which is expected to generate $0.9 billion in benefits by 2028.
- There were $6.7 billion of notable items in 2025, which were excluded from the earnings discussion.
- The company plans to suspend share buybacks for up to three quarters following the Hang Seng Bank privatization.
- HSBC Holdings PLC (HSBC) faces challenges in the Hong Kong commercial real estate sector, with some pockets of distress in retail and office spaces.
- The company expects a 40 basis point ECL charge in 2026, reflecting economic outlook pressures.
- There is uncertainty around the sustainability of the 17% return on tangible equity target beyond the announced planning horizon.
(audio in progress)
At this time, I will hand the call over to George L. Hedey, Group CEO.
Welcome everyone.
Thank you for joining us.
As we celebrate the year of the horse kong Heefa hoi.
Our 2025 full year performance was strong.
It was a year in which we performed.
Transformed and invested for growth.
I will discuss our strong strategic progress today.
First, the strong momentum in our 2025 performance.
Second, the execution of our 3 strategic priorities where we are progressing at pace and with discipline.
And third, the new growth and return targets we are setting out today for 2026, 202,007, and 202,008.
So first, the full year earnings.
My comments will exclude notable items, and the comparisons will be year on year on a constant currency basis.
In 2025, there were $6.7 billion of notable items. You are already aware of these from prior
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