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Dec 31, 2025
HSBC Q4 2025 Earnings Report
HSBC reported strong fourth quarter 2025 results with significant year-over-year revenue and profit growth driven by notable items and higher net interest income.
Key Takeaways
HSBC delivered a strong Q4 2025 with revenue up 42% year-over-year to $16.40B and net income rising to $5.20B, supported by higher net interest income and lower expected credit losses.
Revenue increased 42% year-over-year driven by notable items and NII growth.
Net income rose significantly to $5.20B compared to prior year.
Expected credit losses declined year-over-year.
Operating expenses increased due to restructuring and investment spend.
Forward Guidance
HSBC targets improved returns and revenue growth through 2026-2028 while maintaining capital discipline.
Positive Outlook
- Targeting RoTE of 17% or better from 2026 to 2028.
- Expecting year-on-year revenue growth through 2028.
- Banking NII expected to be at least $45000000000 in 2026.
- Cost growth target of approximately 1% for 2026.
- Maintaining dividend payout ratio target of 50%.
Challenges Ahead
- CET1 ratio may temporarily fall below target range in January 2026.
- Exposure to macroeconomic uncertainty and geopolitical risks.
- Potential volatility in interest rates and inflation.
- Ongoing restructuring and simplification costs.
- Credit risk exposure including commercial real estate sector.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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