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HSBC Holdings, the largest banking group in Europe and Hong Kong by assets, on Wednesday reported a 7 per cent decline in profit last year, as bad debt in commercial property and lawsuits related to the Bernard Madoff fraud case offset strong growth in its wealth business.
Pre-tax profit in 2025 dropped to US$29.9 billion from US$32.3 billion a year earlier, or US$1.21 per share, the lender said in a filing to the Hong Kong stock exchange. The result was higher than analysts’ estimates of US$28.86 billion.
HSBC, which completed a US$14 billion buyout of its subsidiary Hang Seng Bank in January, will pay a final dividend of 45 US cents per share, bringing the payout for the year to 75 US cents. That compared with 87 US cents paid in 2024 and 61 US cents in 2023.
As expected, the bank did not announce any share buy-backs, having indicated that it would suspend them for three quarters when it unveiled the Hang Seng Bank buyout.
“Each of our four businesses performed well and we have strong momentum across the bank,” said CEO Georges Elhedery in the stock exchange filing. “That is why we are raising our ambition and targeting a 17 per cent rate of return or better, excluding notable items, in each year from 2026 to 2028.
“We are becoming a simple, more agile, focused bank, one that moves with the speed our customers need to navigate the modern world. That gives us confidence in our ability to continue delivering for our shareholders.”
