HSBC profit beats forecasts with strong performance from wealth business

Its CEO has earned plaudits from investors with radical restructuring of the bank. Read more at straitstimes.com.

LONDON – HSBC Holdings reported better-than-estimated earnings for 2025 as Europe’s largest bank closed out a year in which its market value broke through £200 billion (S$342 billion) for the first time in its history.

The London-headquartered lender with a focus on Asia posted pre-tax profit of US$29.9 billion (S$37.8 billion) in the 12-month period, exceeding its own compiled analyst estimate of US$28.9 billion.

Results were lifted by a strong performance in its wealth business and its core Hong Kong franchise. HSBC also said it expects to achieve a US$1.5 billion cost-savings target in the first half of 2026 – six months ahead of schedule.

“I think the key message to take forward is number one, we are performing and this performance is delivering good earnings, strong earnings, and is delivering strong growth in all four businesses,” chief executive officer Georges Elhedery said in a Bloomberg Television interview. 

The lender lifted its return on tangible equity targets to 17 per cent or better for 2026, and in 2027 and 2028, according to Mr Elhedery. HSBC shares rose 2.5 per cent in early afternoon Hong Kong trading. 

Since taking over as CEO in 2024, Mr Elhedery has led a radical restructuring of the bank, cutting thousands of jobs, and selling some businesses while merging and closing others. He doubled down on his predecessor’s Asia-pivot strategy by taking private its troubled Hong Kong subsidiary Hang Seng Bank, a major bet on growth in the Asian financial hub.