Form 6-K HSBC HOLDINGS PLC For: May 05
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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of May Wealth
balances
HSBC Holdings plc
8
Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or
Form 40-F).
Form
20-F X Form 40-F
HSBC Holdings plc Earnings Release 1Q26
5 May
2026
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Georges Elhedery, Group CEO, said:
"We
continued to make positive progress in creating a simple, more
agile, growing HSBC. Each of our four businesses contributed to
firm-wide revenue growth and each delivered an annualised RoTE in
excess of 17%, excluding notable items. In periods of greater
uncertainty, customers turn to us more as their trusted partner to
navigate complexity with the financial strength, stability and
expertise they know they can rely on. We remain confident in
achieving the targets we set out in February 2026."
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Financial performance in 1Q26
-
Reported profit before tax of $9.4bn decreased
by $0.1bn compared with 1Q25. The decrease reflected higher
expected credit losses and other credit impairment charges
(‘ECL‘) in 1Q26, an adverse impact from notable items
and a rise in operating expenses. This was partly offset by revenue
growth from strong Wealth fee and other income, as well as higher
banking net interest income (‘banking NII‘). Profit
after tax of $7.4bn was $0.2bn lower than in 1Q25.
-
In 1Q26, notable
items included a disposal loss on classification to held for sale
of $0.3bn associated with the planned sale of our business in
Malta, and losses of $0.2bn from the recycling of foreign currency
translation reserves following the completion of the sale of our UK
life insurance business. In 1Q25, notable items included $0.1bn of
fair value losses on American Depositary Receipts
(‘ADRs‘) received as part of the sale consideration for
our business in Argentina.
-
Constant currency profit before tax excluding
notable items was $10.1bn, broadly stable compared with
1Q25. Revenue growth, driven by a strong performance in
Wealth and higher banking NII, was broadly offset by higher ECL and
operating expense growth.
-
Annualised return on average tangible equity
(‘RoTE‘) in 1Q26 was 17.3%, compared with 17.9% in
1Q25. Excluding notable items, annualised RoTE in 1Q26 was
18.7%, a rise of 0.3 percentage points compared with
1Q25.
-
Revenue increased by $1.0bn or 6% to $18.6bn
compared with 1Q25. The increase primarily reflected strong
growth in Wealth fees and other income in our International Wealth
and Premier Banking (‘IWPB‘) and Hong Kong business
segments, supported by higher customer activity. The increase also
included a one-off property asset disposal gain of $0.2bn, and
growth in banking NII. This was partly offset by the year-on-year
impact of notable items, mainly related to business disposals.
Constant currency revenue excluding
notable items rose by $0.7bn to $19.1bn.
-
Net interest income (‘NII‘) of
$8.9bn increased by $0.6bn or 8% compared with 1Q25,
including an adverse $0.1bn one-off item in 1Q26. The increase was
mainly driven by deposit balance growth, the benefit of
reinvestment of our structural hedge at higher yields and the
impact of lower market interest rates on the funding deployed to
the trading book, partly offset by higher trading balances.
Banking NII, which excludes the
funding costs associated with the trading book, which were stable,
increased by $0.7bn to $11.3bn.
-
Net interest margin (‘NIM’) of
1.60% was 1 basis points (‘bps‘) higher compared with
1Q25. NIM was 4bps lower compared with 4Q25, primarily
reflecting the impact of a one-off item in 1Q26.
-
ECL of $1.3bn were $0.4bn higher compared with
1Q25. The charge in 1Q26 primarily reflected a $0.4bn
fraud-related, secondary, securitisation exposure with a financial
sponsor in the UK in our Corporate and Institutional Banking
(‘CIB‘) business, as well as a $0.3bn increase in
allowances to reflect heightened uncertainty and a deterioration in
the forward economic outlook due to the onset of the conflict in
the Middle East on 28 February 2026. ECL in 1Q25 included charges
related to geopolitical tensions and higher trade
tariffs.
-
Operating expenses of $8.7bn were $0.6bn or 8%
higher compared with 1Q25. The increase reflected the
phasing of the performance-related pay accrual relative to 1Q25,
the impacts of inflation, higher planned spend and investment in
technology, and an adverse impact from foreign currency translation
differences of $0.4bn. These increases were partly mitigated by
cost reductions from our organisational simplification. Target basis operating expenses rose by
$0.3bn or 3%, including a higher performance-related pay
accrual.
-
Customer lending
balances increased by $13.6bn compared with 4Q25, including adverse
foreign currency translation differences. On a constant currency
basis, lending balances increased by $20.1bn, with growth across
all of our business segments.
-
Customer accounts decreased by $5.1bn compared
with 4Q25, including adverse foreign currency translation
differences. On a constant currency basis, customer accounts
increased by $9.2bn, primarily driven by balance growth in CIB in
Asia, notably in Hong Kong. Deposit growth was partly offset by the
classification of deposits from the planned sale of our business in
Malta to ‘liabilities of disposal groups held for
sale‘.
-
Common equity tier 1 (‘CET1’)
capital ratio of 14.0% decreased by 0.9 percentage points compared
with 4Q25, reflecting the impact of the privatisation of
Hang Seng Bank, dividends and an increase in risk-weighted assets
(‘RWAs‘), partly offset by regulatory
profit.
-
The
Board has approved a first interim dividend for 2026 of $0.10 per
share.
Outlook
-
We retain all of
the Group financial targets we announced at our full year 2025
annual results in February 2026, including a RoTE of 17% or better for 2026,
2027 and 2028, excluding notable items.
-
The macroeconomic
outlook is facing heightened uncertainty, creating volatility in
both economic forecasts and financial markets resulting in both
tailwinds and headwinds. The Group is well-positioned to manage the
impacts of these challenges through our high-quality revenue
streams, conservative approach to credit risk and strong deposit
franchise. Supporting our clients through this volatile period is a
top priority.
-
We now expect
banking NII of around $46bn in
2026, reflecting an improved interest rate outlook, while
recognising the outlook remains volatile and uncertain. We had
previously provided banking NII guidance of at least $45bn for
2026.
-
We now expect an
ECL charge as a percentage of
average gross loans to be around 45bps (including held for
sale loan balances) for 2026, reflecting ongoing uncertainty in the
outlook. Our previous ECL guidance for 2026 was around 40bps of
average gross loans (including held for sale loan balances). Over
the medium term, we retain our planning range of
30-40bps.
-
We retain our
commitment to Group-wide cost discipline. We continue to target
growth in target basis operating expenses of approximately 1%
compared with 2025. Our target basis operating expenses measure
excludes notable items and includes the impact of
simplification-related saves associated with our announced
strategic reorganisation.
-
We intend to
continue to manage the CET1 capital
ratio within our medium-term target range of
14%–14.5%. A decision to recommence buy-backs will be
subject to our normal buy-back considerations and process on a
quarterly basis.
-
The Group is well
positioned to manage the changes and uncertainties prevalent within
the global environment in which we operate, including in relation
to the conflict in the Middle East. As part of our periodic
internal stress testing, we have modelled a range of integrated
downside stress scenarios of increasing severity and duration,
which include higher oil prices, rising inflation, a material
slowdown in GDP, rising unemployment and market disruption. Under
these scenarios, we could expect a mid-to-high single digit
percentage adverse impact on profit before tax, which if
unmitigated, could bring RoTE excluding notable items below our 17%
or better target in 2026.
➢
Our targets and
expectations reflect our current outlook for the global
macroeconomic environment and market-dependent factors, such as
market-implied interest rates (as of mid-April 2026) and rates of
foreign exchange, as well as customer behaviour and activity
levels.
➢
We do not reconcile
our forward guidance on RoTE excluding notable items, constant
currency revenue excluding notable items, target basis operating
expenses, dividend payout ratio target basis or banking NII to
their equivalent reported measures.
➢
See page 6 for a
further explanation of RoTE excluding notable items, constant
currency revenue excluding notable items, banking NII, target basis
operating expenses and dividend payout ratio target basis. For
further information on our CET1 ratio, see page 46.
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Presentation to investors and analysts
HSBC
Holdings plc will be conducting a trading update conference call
with analysts and investors today to coincide with the publication
of this Earnings Release 1Q26. The call will take place at 07.45am
BST. Details of how to participate in the call and the live
audio webcast can be found at www.hsbc.com/investors.
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About HSBC
HSBC
Holdings plc, the parent company of HSBC, is headquartered in
London. With assets of $3.3tn at 31 March 2026, HSBC is one of the
world’s largest banking and financial services
organisations.
The
Group‘s operating segments comprise of four businesses along
with Corporate Centre:
-
Hong
Kong
-
UK
-
Corporate and
Institutional Banking
-
International
Wealth and Premier Banking
Our
Hong Kong business comprises Retail Banking and Wealth and
Commercial Banking of HSBC Hong Kong and Hang Seng Bank. Our UK
business comprises UK Retail Banking and Wealth (including first
direct and M&S Bank) and UK Commercial Banking, including HSBC
Innovation Bank. CIB integrates our Commercial Banking business
(outside of the UK and Hong Kong) with our Global Banking and
Markets business. IWPB comprises Premier banking outside of Hong
Kong and the UK, our Private Bank, Asset Management and Insurance
businesses. Corporate Centre results primarily comprise the
financial impact from certain acquisitions and disposals and the
share of profit, dilution and impairment loss impacts from
interests in our associates and joint ventures. It also includes
Central Treasury, stewardship costs and consolidation
adjustments.
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Notes
Income
statement comparisons, unless stated otherwise, are between the
quarter ended 31 March 2026 and the quarter ended
31 March 2025. Balance sheet comparisons, unless
otherwise stated, are between balances at 31 March 2026 and the
corresponding balances at 31 December 2025. Unless otherwise
stated, the factors impacting constant currency income statement
performance between periods are the same factors discussed in
relation to reported income statement performance for the same
periods.
The
financial information on which this Earnings Release 1Q26
is based is unaudited. Other than the adoption of certain
amendments to IFRS 9 ‘Financial Instruments‘ effective
from 1 January 2026, which have had no material impact on the
Group, it has been prepared in accordance with our material
accounting policies as described on pages 274 to 285 of the
Annual Report and Accounts 2025.
Reshaping the Group for growth
On 26
January 2026, we completed our privatisation of Hang Seng Bank,
following shareholder and Court approval. Hang Seng Bank is now a
wholly-owned subsidiary of the HSBC Group and Hang Seng Bank shares
have been withdrawn from the Hong Kong Stock Exchange. Through the
privatisation of Hang Seng Bank, we expect to realise $0.5bn in
pre-tax revenue and cost synergies across both our brands in Hong
Kong by the end of 2028. We expect to incur associated
restructuring costs of $0.6bn, of which one-off income statement
impacts would be reported as material notable items. We also have
an ambition to generate further revenue and cost opportunities of
around $0.4bn by the end of 2028 across both our brands in Hong
Kong.
At our
2024 full-year results we announced measures to simplify the Group,
and we have committed to deliver an annualised reduction of around
$1.5bn in our cost base, expected by the end of 2026 from our
organisational simplification programme.
We
remain on track to have taken actions to deliver our $1.5bn
annualised cost reduction by the end of June 2026, which is six
months earlier than planned. To date, we have identified and
actioned annualised cost savings of approximately $1.4bn, which
resulted in a reduction of around $0.6bn in operating expenses in
the income statement in 2025, and a $0.3bn reduction in 1Q26. In
1Q26 we incurred $0.1bn in restructuring and other related costs,
primarily related to severance, taking the total charge to date to
$1.2bn.
We are
also focused on opportunities where we have a clear competitive
advantage and accretive returns, and we aim to redeploy
approximately $1.8bn of additional costs saved from non-strategic
activities into these areas over the medium term. This includes the
additional $0.3bn of costs saved from the synergies generated from
our privatisation of Hang Seng Bank.
During
the first quarter of 2026, we completed the sales of our UK life
insurance business and our business in South Africa. In addition,
we reclassified to held for sale the assets and liabilities related
to the planned sale of our business in Malta. On 30 April 2026, we
completed the sale of our retail banking business in Sri
Lanka.
On 4
May 2026, we entered into a binding agreement to sell our retail
banking business in Indonesia. The proposed transaction remains
subject to regulatory approval and is expected to complete in the
first half of 2027. Targeted strategic reviews of our retail
businesses in Australia and Egypt, and HSBC Life Singapore, remain
underway on which no decisions have been made. Our CIB businesses
in these markets, as well as in Indonesia are
unaffected.
➢
For further details
on business disposals, see page 14.
From 1
January 2026, we have updated our definition of Wealth balances to
exclude Asset Management third-party distribution assets. On this
new basis, Wealth balances as at 31 March 2026 across all of our
business segments were $1.6tn, broadly stable compared with
31 December 2025. Within this we have attracted net new money
(‘NNM‘) in 1Q26 of $39bn, with $34bn booked in Asia.
This compared with NNM in 1Q25 of $23bn, with $19bn booked in
Asia.
Transaction
banking continues to perform well as we leverage our network and
capabilities to capture opportunities from changing trade and
capital flows. In 1Q26, fee and other income in Wholesale
Transaction Banking rose by 2% compared with 1Q25, reflecting
increases in Securities Services, Global Trade Solutions
(‘GTS‘) and Global Payment Solutions
(‘GPS‘).
Financial
summary
Key financial metrics
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Quarter ended
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31 Mar 2026
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31 Dec 2025
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31 Mar 2025
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Reported results
|
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Profit before tax ($m)
|
9,376
|
6,802
|
9,484
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Profit after tax ($m)
|
7,394
|
5,187
|
7,570
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Net
operating income before change in expected credit losses and other
credit impairment charges (‘revenue’) ($m)
|
18,624
|
16,364
|
17,649
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Cost efficiency ratio (%)
|
46.8
|
57.0
|
45.9
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Net interest margin (%)
|
1.60
|
1.64
|
1.59
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Basic earnings per share ($)
|
0.41
|
0.28
|
0.39
|
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Diluted earnings per share ($)
|
0.40
|
0.27
|
0.39
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Dividend
per ordinary share (in respect of the period) ($)
|
0.10
|
0.45
|
0.10
|
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Alternative performance measures
|
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Constant currency profit before tax ($m)
|
9,376
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6,846
|
9,788
|
|
Constant
currency revenue ($m)
|
18,624
|
16,464
|
18,319
|
|
Constant
currency banking net interest income ($m)
|
11,253
|
11,806
|
11,007
|
|
Constant currency cost efficiency ratio (%)
|
46.8
|
57.0
|
46.1
|
|
Constant currency profit before tax excluding notable items
($m)
|
10,055
|
8,630
|
10,078
|
|
Constant currency revenue excluding notable items ($m)
|
19,125
|
17,831
|
18,411
|
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Constant
currency profit before tax excluding notable items and strategic
transactions ($m)
|
10,055
|
N/A
|
9,984
|
|
Constant
currency revenue excluding notable items and strategic transactions
($m)
|
19,125
|
N/A
|
18,233
|
|
Expected
credit losses and other credit impairment charges (annualised) as a
% of average gross loans and advances to customers, including held
for sale (%)
|
0.52
|
0.36
|
0.38
|
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Basic
earnings per share excluding material notable items and related
impacts ($)
|
0.44
|
0.37
|
0.39
|
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Return on average ordinary shareholders’ equity (annualised)
(%)
|
16.0
|
10.8
|
16.6
|
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Return on average tangible equity (annualised) (%)
|
17.3
|
11.8
|
17.9
|
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Return
on average tangible equity excluding notable items (annualised)
(%)
|
18.7
|
15.9
|
18.4
|
|
Target
basis operating expenses ($m)
|
8,543
|
8,974
|
8,264
|
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At
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31 Mar
2026
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31 Dec 2025
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31 Mar 2025
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Balance sheet
|
|
|
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Total assets ($m)
|
3,306,011
|
3,233,034
|
3,054,36
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Net loans and advances to customers ($m)
|
1,001,957
|
988,399
|
944,708
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Constant
currency net loans and advances to customers ($m)
|
1,001,957
|
981,879
|
965,802
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Customer accounts ($m)
|
1,781,761
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1,786,828
|
1,666,485
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Constant
currency customer accounts ($m)
|
1,781,761
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1,772,579
|
1,696,120
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Average interest-earning assets, year to date ($m)
|
2,261,415
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2,190,078
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2,124,161
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Loans and advances to customers as % of customer accounts
(%)
|
56.2
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55.3
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56.7
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Total shareholders’ equity ($m)
|
196,819
|
198,225
|
190,810
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Tangible ordinary shareholders’ equity ($m)
|
162,335
|
165,153
|
160,398
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Net asset value per ordinary share at period end ($)
|
10.17
|
10.36
|
9.74
|
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Tangible net asset value per ordinary share at period end
($)
|
9.46
|
9.64
|
9.08
|
|
Capital, leverage and liquidity
|
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Common
equity tier 1 capital ratio (%)1,2
|
14.0
|
14.9
|
14.7
|
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Risk-weighted
assets ($m)1,2
|
883,759
|
888,647
|
853,257
|
|
Total
capital ratio (%)1,2
|
19.7
|
20.5
|
19.9
|
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Leverage
ratio (%)1,2
|
5.0
|
5.3
|
5.4
|
|
High-quality
liquid assets (liquidity value) ($m)2,3
|
710,604
|
702,123
|
660,704
|
|
Liquidity
coverage ratio (%)2,3
|
135
|
137
|
139
|
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Share count
|
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|
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Period
end basic number of $0.50 ordinary shares outstanding, after
deducting own shares held (millions)
|
17,164
|
17,140
|
17,668
|
|
Period
end basic number of $0.50 ordinary shares outstanding and dilutive
potential ordinary shares, after deducting own shares held
(millions)
|
17,293
|
17,276
|
17,836
|
|
Average
basic number of $0.50 ordinary shares outstanding, after deducting
own shares held (millions)
|
17,129
|
17,136
|
17,769
|
➢
For reconciliations
of our reported results to a constant currency basis, including
lists of notable items, see page 22. Definitions and calculations
of other alternative performance measures are included in
‘Alternative performance measures’ on page
30.
1
Regulatory capital ratios and requirements are based on the
Prudential rules in force at the time.
2
Regulatory numbers and ratios are as presented at the date of
reporting. Small changes may exist between these numbers and ratios
and those subsequently submitted in regulatory filings. Where
differences are significant, we may restate in subsequent
periods.
3 The
liquidity coverage ratio (‘LCR‘) is based on the
average value of the preceding 12 months.
Basis of presentation
Constant
currency performance
Constant
currency performance is computed by adjusting reported results for
the effects of foreign currency translation differences, which
reflect the movements of the US dollar against most major
currencies during 2026. Excluding these differences allows us to
assess balance sheet and income statement performance on a
like-for-like basis and to better understand the underlying trends
in the business. Foreign currency translation differences at 31
March 2026 are computed by retranslating into US dollars for non-US
dollar branches, subsidiaries, joint ventures and
associates:
-
the income
statements for 4Q25 and 1Q25 at the average rate of exchange for
1Q26;
-
the closing prior
period balance sheets at the prevailing rates of exchange on 31
March 2026.
No
adjustment has been made to the exchange rates used to translate
foreign currency-denominated assets and liabilities into the
functional currencies of any HSBC branches, subsidiaries, joint
ventures or associates. The constant currency data of our
operations in Türkiye has not been adjusted further for the
impacts of hyperinflation. When reference is made to foreign
currency translation differences in tables or commentaries,
comparative data reported in the functional currencies of
HSBC’s operations has been translated at the appropriate
exchange rates applied in the current period on the basis described
above.
Notable
items and material notable items
We
separately disclose ‘notable items’, which are
components of our income statement that management would consider
as outside the normal course of business and generally
non-recurring in nature.
Certain
notable items are classified as ‘material notable
items’, which are a subset of notable items. Categorisation
as a material notable item is dependent on the nature of each item
in conjunction with the financial impact on the Group‘s
income statement, and such items are excluded from our
‘dividend payout ratio target basis’ calculation and
‘basic earnings per share excluding material notable items
and related impacts’ measure. Material notable items in 1Q26
or relevant comparative periods relate to the operating expenses
associated with actions to exit or wind down non-strategic
businesses.
➢
The tables on pages
22 to 24 and pages 27 to 29 detail the effects of notable items on
each of our business segments and legal entities.
Impact
of strategic transactions
In
addition to the items categorised as material notable items, the
impacts of strategic transactions include the distorting impact
observed between the periods of the operating income statement
results related to acquisitions and disposals that affect
period-on-period comparisons. Once a transaction has completed or a
wind-down has commenced, the impact will include the operating
income statement results of each business, which are not classified
as notable items, in any comparative period if there are no results
in the current period as a result of a transaction, or a reduction
in revenue or costs has arisen from the wind-down of a business. We
consider the monthly impact of distorting income statement results
when calculating the impact of strategic transactions. In the case
of wind-downs, or transactions that complete in phased tranches,
there may be timing differences between the recognition of
operating cost impacts and operating revenue impacts. These would
arise in the event that there is a timing lag between the impact of
cost actions and the resultant impact on operating
revenue.
➢
See page 25 for
further details on the impact of strategic
transactions.
Management
view of revenue on a constant currency basis
We
provide breakdowns of revenue for each of our business segments on
a constant currency basis by major product. These reflect the basis
on which revenue performance of the businesses is assessed and
managed. In the management view of revenue, notable items are
presented separately.
We
group certain products in a consistent manner across our business
segments. Wholesale Transaction Banking comprises our Global
Foreign Exchange, GPS, GTS and Securities Services businesses.
Wealth comprises our Investment Distribution, Insurance, Private
Bank and Asset Management businesses.
On page
7 we also provide a summarised management view of revenue for the
Group‘s results, on reported foreign exchange rates, to
supplement the Group‘s reported revenue performance using the
product grouping which is used to manage and assess our segmental
performance.
Impact
of hyperinflationary accounting
We
continue to treat Türkiye as a hyperinflationary economy for
accounting purposes. The impact of applying International
Accounting Standard (‘IAS’) 29 ‘Financial
Reporting in Hyperinflationary Economies’ and the
hyperinflation provisions of IAS 21 ’The Effects of Changes
in Foreign Exchange Rates’ in the current period on our
operations in Türkiye was a decrease in the Group’s
profit before tax of $62m (4Q25: $31m decrease; 1Q25: $48m
decrease). The consumer price index at 31 March 2026 for
Türkiye was 121.47, an increase in the 1Q26 period of 11.08
compared with 4Q25 (4Q25: 4.61 increase compared with 3Q25; 1Q25:
8.49 increase compared with 4Q24).
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Use of alternative performance measures
Our
reported results are prepared in accordance with International
Financial Reporting Standards as issued by the International
Accounting Standards Board (‘IFRS Accounting
Standards‘), as detailed in our financial statements
starting on page 262 of the Annual Report and Accounts
2025.
To
measure our performance, we supplement our IFRS Accounting
Standards figures with non-IFRS Accounting Standards measures,
which constitute alternative performance measures under European
Securities and Markets Authority guidance and non-GAAP financial
measures defined in and presented in accordance with the US
Securities and Exchange Commission rules and regulations. These
measures include those derived from our reported results that
eliminate factors distorting period-on-period comparisons. The
‘constant currency performance’ measure used throughout
this report is described on page 5. Definitions and calculations
of other alternative performance measures are included in
‘Alternative performance measures’ on page 30. All alternative performance
measures are reconciled to the closest reported performance
measure.
Return
on average tangible equity excluding notable items
The
calculation for RoTE excluding notable items adjusts the
‘profit attributable to the ordinary shareholders, excluding
goodwill and other intangible assets impairment‘ for the
post-tax impact of notable items. To better align with market
practice, from our 2025 full-year results, we no longer adjust the
‘average tangible equity‘ for the post-tax impact of
notable items in each period. Comparatives have been
re-presented.
➢
See page 31 for the
definition of return on average tangible equity excluding notable
items and page 31 for the reconciliation to the GAAP
measure.
Banking
net interest income
Banking
net interest income (‘banking NII‘) adjusts our NII
primarily for the impact of funding trading and fair value
activities reported in interest expense. It represents the
Group’s banking revenue that is directly impacted by changes
in interest rates. We use this measure to determine the deployment
of our surplus funding, and to help optimise our structural hedging
and risk management actions.
➢
For more
information on banking NII, including the reconciliation to the
GAAP measure, see page 11.
Constant
currency revenue and profit before tax excluding notable items and
the impact of strategic transactions
To aid
the understanding of our results, we separately report
‘constant currency revenue excluding notable items‘ and
‘constant currency profit before tax excluding notable
items‘, which exclude the impact of notable items and the
impact of foreign exchange translation. We also separately disclose
‘constant currency revenue excluding notable items and the
impact of strategic transactions‘ and ‘constant
currency profit before tax excluding notable items and the impact
of strategic transactions‘, which also exclude the impact of
strategic transactions classified as material notable items. We
consider these measures to provide useful information to investors
as they remove items that distort period-on-period
comparisons.
The
impact of strategic transactions also includes the distorting
impact between the periods of the operating income statement
results related to acquisitions and disposals and that affect
period-on-period comparisons. These impacts are not included in our
notable or material notable items. The impact of strategic
transactions is computed by including the operating income
statement results of each business in any period for which there
are no results in the comparative period.
➢
See page 31 for the
reconciliation to the GAAP measure.
Target
basis operating expenses
Target
basis operating expenses includes the impact of
simplification-related saves associated with our announced
strategic reorganisation, is measured on a constant currency basis
and excludes notable items and the impact of retranslating the
prior year results of hyperinflationary economies at constant
currency, which we consider to be outside of our control. We
consider target basis operating expenses to provide useful
information to investors by quantifying and excluding the notable
items that management considered when setting and assessing
cost-related targets.
➢
See page 33 for the
reconciliation to the GAAP measure.
Basic
earnings per share excluding material notable items and related
impacts
We have
established a dividend payout ratio target basis of 50% for 2026.
For the purposes of computing our dividend payout ratio target
basis, we exclude from earnings per share material notable items
and related impacts.
Related
impacts include those items that do not qualify for designation as
notable items but whose adjustment is considered by management to
be appropriate for the purposes of determining the basis for our
dividend payout ratio target basis calculation, which we exclude
from earnings per share material notable items and related
impacts.
➢
See page 25 for the
supplementary analysis of the impact of strategic
transactions.
➢
See page 30 for the
definition of ‘basic earnings per share excluding material
notable items and related impacts‘ and page 33 for the
reconciliation to the GAAP measure.
Income statement results
Summary
consolidated income statement
|
|
Quarter
ended
|
||||||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
||||||
|
|
$m
|
$m
|
$m
|
||||||
|
Net
interest income
|
8,945
|
9,196
|
8,302
|
||||||
|
Net fee income
|
3,719
|
3,194
|
3,324
|
||||||
|
Net
income from financial instruments held for trading or managed on a
fair value basis
|
5,450
|
4,621
|
5,356
|
||||||
|
Net
income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
(364)
|
1,619
|
1,521
|
||||||
|
Insurance
finance income/(expense)
|
401
|
(1,656)
|
(1,556)
|
||||||
|
Insurance service result
|
491
|
439
|
347
|
||||||
|
(Losses)/gains
recognised on sale of business operations1
|
(505)
|
134
|
2
|
||||||
|
Other
operating (expense)/income2
|
487
|
(1,183)
|
353
|
||||||
|
Net operating income before change in expected credit losses and
other credit impairment charges3
|
18,624
|
16,364
|
17,649
|
||||||
|
Change in expected credit losses and other credit impairment
charges
|
(1,301)
|
(901)
|
(876)
|
||||||
|
Net operating income
|
17,323
|
15,463
|
16,773
|
||||||
|
Total
operating expenses excluding amortisation and impairment of
intangible assets
|
(7,997)
|
(8,612)
|
(7,489)
|
||||||
|
Amortisation
and impairment of intangible assets
|
(724)
|
(718)
|
(613)
|
||||||
|
Operating profit
|
8,602
|
6,133
|
8,671
|
||||||
|
Share of profit in associates and joint ventures
|
774
|
669
|
813
|
||||||
|
Profit before tax
|
9,376
|
6,802
|
9,484
|
||||||
|
Tax expense
|
(1,982)
|
(1,615)
|
(1,914)
|
||||||
|
Profit after tax
|
7,394
|
5,187
|
7,570
|
||||||
|
Attributable to:
|
|||||||||
|
– ordinary shareholders of the parent company
|
6,938
|
4,719
|
6,932
|
||||||
|
– other equity holders
|
407
|
225
|
392
|
||||||
|
– non-controlling interests
|
49
|
243
|
246
|
||||||
|
Profit after tax
|
7,394
|
5,187
|
7,570
|
||||||
|
|
$
|
$
|
$
|
||||||
|
Basic earnings per share
|
0.41
|
0.28
|
0.39
|
||||||
|
Diluted earnings per share
|
0.40
|
0.27
|
0.39
|
||||||
|
Dividend
per ordinary share (paid in the period)
|
—
|
0.10
|
—
|
||||||
|
|
%
|
%
|
%
|
||||||
|
Return on average ordinary shareholders’ equity
(annualised)
|
16.0
|
10.8
|
16.6
|
||||||
|
Return on average tangible equity (annualised)
|
17.3
|
11.8
|
17.9
|
||||||
|
Cost efficiency ratio
|
46.8
|
57.0
|
45.9
|
||||||
1
Amounts in 1Q26 include $0.2bn on the recycling in foreign currency
translation reserve losses arising on completion of the sale of our
UK life insurance business, HSBC Life (UK) Limited, and $0.3bn of
disposal losses recognised upon the ‘held for sale‘
classification of HSBC Continental Europe’s shareholding in
HSBC Bank Malta plc.
2
Amounts in 4Q25 include recycling of cumulative fair value losses
of $1.5bn relating to the French retained portfolio of home and
certain other loans following the completion of its sale to a
consortium comprising Rothesay Life plc and CCF.
3 Also
referred to as revenue.
1Q26
compared with 1Q25 – reported results
|
Movement in reported profit compared with 1Q25
|
||||||||||
|
|
Quarter ended
|
|||||||||
|
|
|
|
Variance
|
|||||||
|
|
|
|
1Q26 vs. 1Q25
|
|||||||
|
|
31 Mar 2026
|
31 Mar 2025
|
|
|
of which strategic
transactions1
|
|||||
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|||||
|
Revenue
|
18,624
|
|
17,649
|
|
975
|
|
6
|
|
(572)
|
|
|
–
of which: net interest income
|
8,945
|
|
8,302
|
|
643
|
|
8
|
|
5
|
|
|
ECL
|
(1,301)
|
|
(876)
|
|
(425)
|
|
(49)
|
|
—
|
|
|
Operating expenses
|
(8,721)
|
|
(8,102)
|
|
(619)
|
|
(8)
|
|
82
|
|
|
Share
of profit from associates and joint ventures
|
774
|
|
813
|
|
(39)
|
|
(5)
|
|
—
|
|
|
Profit before tax
|
9,376
|
|
9,484
|
|
(108)
|
|
(1)
|
|
(490)
|
|
|
Tax expense
|
(1,982)
|
|
(1,914)
|
|
(68)
|
|
(4)
|
|
|
|
|
Profit after tax
|
7,394
|
|
7,570
|
|
(176)
|
|
(2)
|
|
|
|
|
Revenue excluding notable items
|
19,125
|
|
17,740
|
|
1,385
|
|
8
|
|
(162)
|
|
|
Profit before tax excluding notable items
|
10,055
|
|
9,766
|
|
289
|
|
3
|
|
|
|
1 For
details, see ‘Strategic transactions supplementary
analysis‘ on page 25.
|
Supplementary management view of revenue
|
|
||||||||||
|
|
Quarter ended
|
|
|||||||||
|
|
|
|
Variance
|
|
|||||||
|
|
|
|
1Q26 vs. 1Q25
|
|
|||||||
|
|
31 Mar
2026
|
31 Mar 2025
|
|
|
of which strategic
transactions1
|
|
|||||
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
|||||
|
Banking NII2
|
11,253
|
|
10,599
|
|
654
|
|
6
|
|
2
|
|
|
|
Fee and other income
|
7,872
|
|
7,141
|
|
731
|
|
10
|
|
(164)
|
|
|
|
–
Wealth
|
2,697
|
|
2,290
|
|
407
|
|
18
|
|
(37)
|
|
|
|
–
Wholesale Transaction Banking
|
3,081
|
|
2,912
|
|
169
|
|
6
|
|
(1)
|
|
|
|
–
Other
|
2,094
|
|
1,939
|
|
155
|
|
8
|
|
(126)
|
|
|
|
Revenue excluding notable items3
|
19,125
|
|
17,740
|
|
1,385
|
|
8
|
|
(162)
|
|
|
|
Notable items
|
(501)
|
|
(91)
|
|
(410)
|
|
>(100)
|
(410)
|
|
||
|
Revenue
|
18,624
|
|
17,649
|
|
975
|
|
6
|
|
(572)
|
|
|
1 For
details, see ‘Strategic transactions supplementary
analysis‘ on page 25.
2 For a
reconciliation of banking NII to reported NII, see page
11. Banking NII in
our supplementary management view of revenue excludes notable
items, which were nil in 1Q26 (1Q25: nil).
3 For a
reconciliation of reported revenue to revenue excluding notable
items, see page 31.
|
Notable items
|
||||||
|
|
Quarter ended
|
|||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|||
|
|
$m
|
$m
|
$m
|
|||
|
Revenue
|
|
|
|
|||
|
Disposals, wind-downs, acquisitions and related costs
|
(501
|
)
|
(1,359)
|
|
(91)
|
|
|
Dilution loss of interest in BoCom associate
|
—
|
|
—
|
|
—
|
|
|
Currency
translation on revenue notable items
|
|
(8)
|
|
(1)
|
||
|
Operating expenses
|
|
|
|
|||
|
Disposals,
wind-downs, acquisitions and related costs
|
(50
|
)
|
(157)
|
|
(50)
|
|
|
Restructuring
and other related costs
|
(128
|
)
|
(257)
|
|
(141)
|
|
|
Legal
provisions
|
—
|
|
(11)
|
|
—
|
|
|
Currency
translation on operating expenses notable items
|
|
8
|
|
(7)
|
||
|
Impairment of interest in associate
|
—
|
|
—
|
|
—
|
|
|
Currency translation on associate notable items
|
|
—
|
|
—
|
||
1Q26
compared with 1Q25 – constant currency basis
|
Movement in profit before tax compared with 1Q25 – on a
constant currency basis
|
|
|
||||||||||
|
|
Quarter ended
|
|
||||||||||
|
|
|
|
Variance
|
|||||||||
|
|
|
|
1Q26
vs. 1Q25
|
|||||||||
|
|
31 Mar 2026
|
31 Mar 2025
|
|
|
of
which strategic transactions1
|
|||||||
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|||||||
|
Revenue
|
18,624
|
|
18,319
|
|
305
|
|
2
|
(587)
|
||||
|
ECL
|
(1,301
|
)
|
(923
|
)
|
(378)
|
|
(41)
|
—
|
||||
|
Operating expenses
|
(8,721
|
)
|
(8,453
|
)
|
(268)
|
|
(3)
|
84
|
||||
|
Share
of profit from associates and joint ventures
|
774
|
|
845
|
|
(71)
|
|
(8)
|
—
|
||||
|
Profit before tax
|
9,376
|
|
9,788
|
|
(412)
|
|
(4)
|
(503)
|
||||
1 For
details, see ‘Strategic transactions supplementary
analysis‘ on page 25.
1Q26
compared with 1Q25 – performance commentary
Reported profit before tax of $9.4bn was $0.1bn lower than
in 1Q25, driven by higher ECL charges, as well as an adverse impact
from notable items and growth in operating expenses. In 1Q26,
notable items primarily comprised a disposal loss on classification
to held for sale of $0.3bn associated with the planned sale of our
business in Malta, and losses of $0.2bn from the recycling of
foreign currency translation reserves following the completion of
the sale of our UK life insurance business. In 1Q25, notable items
included $0.1bn of fair value losses on ADRs received as part of
the sale consideration for our business in Argentina. We disposed
of these ADRs during the second quarter of 2025. These reductions
were partly offset by revenue growth from strong fee and other
income growth in Wealth in our IWPB and Hong Kong businesses and
higher banking NII.
On a
constant currency basis, profit before tax of $9.4bn was 4% lower
compared with 1Q25. Excluding notable items, profit before tax of
$10.1bn was broadly stable compared with 1Q25.
Reported revenue of $18.6bn was $1.0bn or 6% higher than in
1Q25 reflecting fee and other income and banking NII growth. This
was partly offset by a net adverse movement in notable items of
$0.4bn, primarily relating to the planned sale of our business in
Malta and the completion of the sale of our UK life insurance
business in 1Q26.
Revenue
excluding notable items increased by $1.4bn or 8%, reflecting fee
and other income growth, primarily in Wealth. There was a strong
performance in investment distribution, in both our IWPB and Hong
Kong business segments, and an increase in Private Bank supported
by higher customer activity. In addition, there was growth in
Insurance fee and other income driven by higher contractual service
margin (‘CSM‘) release given continued year-on-year
growth in our CSM balance, notably in Hong Kong, favourable
experience variances, and the non-recurrence of onerous contract
losses, notably in mainland China.
Fee and
other income increased in Wholesale Transaction Banking and also in
Corporate Centre due to a one-off property asset disposal gain of
$0.2bn. These increases were partly offset by a reduction in fee
and other income in Debt and Equity Markets.
NII increased by $0.6bn compared with 1Q25, including an
adverse $0.1bn one-off item in 1Q26. The increase was mainly driven
by deposit balance growth, the benefit of reinvestment of our
structural hedge at higher yields and the impact of lower market
interest rates on the funding deployed to the trading book, partly
offset by higher trading balances. The funding costs associated
with generating trading and fair value income were $2.4bn. Banking
NII, which excludes these costs, increased by $0.7bn to
$11.3bn.
On a
constant currency basis, revenue increased by $0.3bn or
2%.
Reported ECL of $1.3bn were $0.4bn higher compared with
1Q25. The charge in 1Q26 primarily reflected a $0.4bn
fraud-related, secondary, securitisation exposure with a financial
sponsor in the UK in our CIB business, as well as a $0.3bn increase
in allowances to reflect heightened uncertainty and a deterioration
in the forward economic outlook due to the onset of the conflict in
the Middle East on 28 February 2026. ECL in 1Q25 included charges
related to geopolitical tensions and higher trade
tariffs.
➢
For further details
of the calculation of ECL, including the measurement uncertainties
and significant judgements applied to such calculations, the impact
of the economic scenarios and management judgemental adjustments,
see pages 38 to 43.
Reported operating expenses of $8.7bn were $0.6bn or 8%
higher. The increase reflected the phasing of the
performance-related pay accrual relative to 1Q25, the impact of
inflation, higher planned spend and investment in technology, and
an adverse impact from foreign currency translation differences of
$0.4bn. These increases were partly mitigated by cost reductions
from our organisational simplification.
Restructuring
and other related costs associated with our organisational
simplification of $0.1bn were broadly stable compared with 1Q25. On
a constant currency basis, operating expenses increased by $0.3bn
or 3%. Target basis operating
expenses were $0.3bn or 3% higher than in 1Q25.
Reported share of profit from associates and joint ventures of $0.8bn fell by
$39m or 5%, primarily due to a lower share of profit from Bank of
Communications Co., Limited (‘BoCom‘) following the
dilution in the Group‘s stake from 19.03% to 16.00% during
2025.
Tax expense in 1Q26 was a charge of $2.0bn, representing an
effective tax rate of 21.1%. The effective tax rate for 1Q26 was
increased by 1.0% by the non-deductible losses recorded on the sale
of HSBC Life (UK) Limited and the planned sale of our business in
Malta. Tax expense in 1Q25 was a charge of $1.9bn, representing an
effective tax rate of 20.2%. The effective tax rate for 1Q25 was
increased by 0.7% by charges in respect of prior
periods.
Dividend
On 5
May 2026, the Board announced a first interim dividend for 2026 of
$0.10 per ordinary share. For further details, see page
49.
1Q26
compared with 4Q25 – reported results
|
Movement
in reported profit compared with 4Q25
|
|
||||||
|
|
Quarter ended
|
||||||
|
|
|
|
Variance
|
||||
|
|
|
|
1Q26 vs. 4Q25
|
||||
|
|
31 Mar
2026
|
31 Dec 2025
|
|
|
|||
|
|
$m
|
$m
|
$m
|
%
|
|||
|
Revenue
|
18,624
|
|
16,364
|
|
2,260
|
|
14
|
|
–
of which: net interest income
|
8,945
|
|
9,196
|
|
(251)
|
|
(3)
|
|
ECL
|
(1,301)
|
|
(901)
|
|
(400)
|
|
(44)
|
|
Operating expenses
|
(8,721)
|
|
(9,330)
|
|
609
|
|
7
|
|
Share
of profit from associates and joint ventures
|
774
|
|
669
|
|
105
|
|
16
|
|
Profit before tax
|
9,376
|
|
6,802
|
|
2,574
|
|
38
|
|
Tax expense
|
(1,982)
|
|
(1,615)
|
|
(367)
|
|
(23)
|
|
Profit after tax
|
7,394
|
|
5,187
|
|
2,207
|
|
43
|
|
Revenue excluding notable items
|
19,125
|
|
17,723
|
|
1,402
|
|
8
|
|
Profit before tax excluding notable items
|
10,055
|
|
8,586
|
|
1,469
|
|
17
|
|
Supplementary management view of revenue
|
|||||||
|
|
Quarter ended
|
||||||
|
|
|
|
Variance
|
||||
|
|
|
|
1Q26 vs. 4Q25
|
||||
|
|
31 Mar 2026
|
31 Dec 2025
|
|
|
|||
|
|
$m
|
$m
|
$m
|
%
|
|||
|
Banking NII1
|
11,253
|
|
11,722
|
(469)
|
|
(4)
|
|
|
Fee and other income
|
7,872
|
|
6,001
|
1,871
|
|
31
|
|
|
–
Wealth
|
2,697
|
|
2,147
|
550
|
|
26
|
|
|
–
Wholesale Transaction Banking
|
3,081
|
|
2,647
|
434
|
|
16
|
|
|
–
Other
|
2,094
|
|
1,207
|
887
|
|
73
|
|
|
Revenue excluding notable items2
|
19,125
|
|
17,723
|
1,402
|
|
8
|
|
|
Notable items
|
(501)
|
|
(1,359)
|
858
|
|
63
|
|
|
Revenue
|
18,624
|
|
16,364
|
2,260
|
|
14
|
|
1 For a
reconciliation of banking NII to reported NII, see page 11. Banking
NII in our supplementary management view of revenue excludes
notable items, which were nil in 1Q26 (4Q25: nil).
2 For a
reconciliation of reported revenue to revenue excluding notable
items, see page 31.
1Q26
compared with 4Q25 – constant currency basis
|
Movement in profit before tax compared with 4Q25 – on a
constant currency basis
|
|
|||||||||
|
|
Quarter ended
|
|
||||||||
|
|
|
|
Variance
|
|
||||||
|
|
|
|
1Q26 vs. 4Q25
|
|
||||||
|
|
31 Mar 2026
|
31 Dec 2025
|
|
|
|
|||||
|
|
$m
|
$m
|
$m
|
%
|
|
|
||||
|
Revenue
|
18,624
|
16,464
|
2,160
|
13
|
|
|||||
|
ECL
|
(1,301
)
|
(910
)
|
(391
)
|
(43
)
|
|
|||||
|
Operating expenses
|
(8,721
)
|
(9,389
)
|
668
|
7
|
|
|
||||
|
Share
of profit from associates and joint ventures
|
774
|
681
|
93
|
14
|
|
|||||
|
Profit before tax
|
9,376
|
6,846
|
2,530
|
37
|
|
|
||||
1Q26
compared with 4Q25 – performance commentary
Reported profit before tax of $9.4bn was $2.6bn higher than
in 4Q25. This primarily reflected an increase in revenue of $2.3bn,
which included a net favourable impact of notable items of $0.9bn,
mainly relating to business disposals. Higher revenue also included
growth in fee and other income from Wealth in our IWPB and Hong
Kong business segments, and Debt and Equity Markets and Global
Foreign Exchange in our CIB segment. Operating expenses fell by
$0.6bn compared with 4Q25, while ECL increased by
$0.4bn.
Reported
profit after tax of $7.4bn was $2.2bn or 43% higher compared with
4Q25.
On a
constant currency basis, profit before tax of $9.4bn was $2.5bn
higher than in 4Q25, while excluding notable items it increased by
$1.4bn or 17%.
Reported revenue of $18.6bn was $2.3bn or 14% higher, which
included a net favourable impact of notable items of
$0.9bn.
In
1Q26, notable items primarily comprised a disposal loss on
classification to held for sale of $0.3bn associated with the
planned sale of our business in Malta, and losses of $0.2bn from
the recycling of foreign currency translation reserves following
the completion of the sale of our UK life insurance business. In
4Q25, notable items primarily comprised reserve recycling losses of
$1.5bn following the completion of the sale of our French retained
portfolio of home and certain other loans.
Revenue
excluding notable items increased by $1.4bn driven by the impact of
higher customer activity across Wealth products in our Hong Kong
and IWPB business segments, and stronger client activity and market
volatility in Debt and Equity Markets in CIB. Fee and other income
from Wholesale Transaction Banking also increased, primarily in
Global Foreign Exchange driven by increased market volatility in
1Q26, as well as from higher fee and other income in
GTS.
NII decreased by $0.3bn compared with 4Q25, including an
adverse impact of foreign currency translation differences of
$0.1bn. Excluding these factors, NII decreased due to a lower day
count in 1Q26, an adverse $0.1bn one-off item in 1Q26, the
non-recurrence of $0.1bn in favourable one-off items in 4Q25, and
increased funding deployed to the trading book. This was partly
offset by the benefit of deposit growth. The funding costs
associated with generating trading and fair value income were
$2.4bn, a reduction of $0.2bn compared with 4Q25. Banking NII,
which excludes these costs, decreased by $0.5bn to
$11.3bn.
Reported ECL of $1.3bn were $0.4bn or 44% higher than in
4Q25, primarily reflecting a $0.4bn fraud-related, secondary,
securitisation exposure with a financial sponsor in the UK in our
CIB business. In addition, the 1Q26 charge included a $0.3bn
increase in allowances to reflect heightened uncertainty and a
deterioration in the forward economic outlook due to the onset of
the conflict in the Middle East on 28 February
2026.
Reported operating expenses of $8.7bn were $0.6bn or 7%
lower. The reduction included a net favourable impact from notable
items of $0.2bn, including restructuring and other related costs of
$0.1bn related to our organisational simplification, and a $0.1bn
impact from strategic transactions, as well as $0.2bn from lower
banking levies, mainly incurred in the fourth quarter. These
decreases were partly offset by higher planned spend and investment
in technology.
On a
constant currency basis, operating expenses decreased by $0.7bn or
7%. Target basis operating expenses
were $0.4bn or 5% lower than in 4Q25.
The
number of employees expressed in full-time equivalent staff at 31
March 2026 was 208,844, stable compared with 31 December 2025.
The number of contractors at 31 March 2026 was 3,774, a decrease of
200 from 31 December 2025.
Reported share of profit from associates and joint ventures
was $0.1bn or 16% higher, primarily due to a higher share of profit
from BoCom.
Tax expense in 1Q26 was a charge of $2.0bn, representing an
effective tax rate of 21.1% (4Q25: 23.7%). The effective tax rate
for 1Q26 was increased by 1.0% by the non-deductible losses
recorded on the sale of HSBC Life (UK) Limited and the planned sale
of our business in Malta. The effective tax rate for 4Q25 was
increased by the non-deductible bank levy expense and by
non-deductible net losses arising on business disposals. Excluding
these items, the effective tax rate for 4Q25 was
19.1%.
Net
interest income
|
|
Quarter
ended
|
|||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|||
|
|
$m
|
$m
|
$m
|
|||
|
Interest
income
|
23,658
|
24,503
|
24,413
|
|
||
|
Interest
expense
|
(14,713
)
|
(15,307
)
|
(16,111
|
)
|
||
|
Net interest income
|
8,945
|
9,196
|
8,302
|
|
||
|
Average interest-earning assets
|
2,261,415
|
2,221,054
|
2,124,161
|
|
||
|
|
%
|
%
|
%
|
|||
|
Gross
interest yield1
|
4.24
|
4.38
|
4.66
|
|
||
|
Less:
gross interest payable1
|
(2.79
)
|
(2.93
)
|
(3.34
|
)
|
||
|
Net
interest spread2
|
1.45
|
1.45
|
1.32
|
|
||
|
Net
interest margin3
|
1.60
|
1.64
|
1.59
|
|
||
1 Gross
interest yield is the average annualised interest rate earned on
average interest-earning assets (‘AIEA’), net of
amortised premiums and loan fees. Gross interest payable is the
average annualised interest cost as a percentage of average
interest-bearing liabilities.
2 Net
interest spread is the difference between the average annualised
interest rate earned on AIEA, net of amortised premiums and loan
fees, and the average annualised interest rate payable on average
interest-bearing funds.
3 Net
interest margin is net interest income expressed as an annualised
percentage of AIEA.
NII in 1Q26 of $8.9bn was $0.3bn lower compared with 4Q25.
This mainly reflected a lower day count, an adverse $0.1bn one-off
item in 1Q26, the non-recurrence of $0.1bn in favourable one-off
items in 4Q25, and increased funding deployed to the trading book.
This was partly offset by the benefit of deposit
growth.
NII
increased by $0.6bn or 8% compared with 1Q25, including an adverse
$0.1bn one-off item in 1Q26. The increase was mainly driven by
deposit balance growth, the benefit of the reinvestment of our
structural hedge at higher yields and the impact of lower market
interest rates on the funding deployed to the trading book, partly
offset by higher trading balances.
NIM for 1Q26 of 1.60% was 1bps higher compared with 1Q25.
NIM was down 4bps in 1Q26 compared with 4Q25, primarily reflecting
the one-off items mentioned above.
Interest income in 1Q26 of $23.7bn decreased by $0.8bn or 3%
compared with 1Q25, and by $0.8bn or 3% compared with 4Q25, due to
lower market interest rates. On a constant currency basis, interest
income fell by $1.7bn compared with 1Q25, and by $1.0bn compared
with 4Q25.
Interest expense in 1Q26 of $14.7bn decreased by $1.4bn or
9% compared with 1Q25, and by $0.6bn or 4% compared with 4Q25, due
to lower market interest rates. On a constant currency basis,
interest expense fell by $2.0bn compared with 1Q25, and by $0.7bn
compared with 4Q25.
Banking net interest income
|
|
Quarter
ended
|
|||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|||
|
|
$m
|
$m
|
$m
|
|||
|
Net interest income
|
8,945
|
|
9,196
|
|
8,302
|
|
|
Banking book funding costs used to generate 'net income from
financial instruments held for trading or managed on a fair value
basis'
|
2,356
|
|
2,592
|
|
2,403
|
|
|
Third-party net interest income from insurance
|
(48
|
)
|
(66
|
)
|
(106
|
)
|
|
Banking net interest income
|
11,253
|
|
11,722
|
|
10,599
|
|
|
Currency translation
|
|
84
|
|
408
|
|
|
|
Banking net interest income - on a constant currency
basis
|
11,253
|
|
11,806
|
|
11,007
|
|
|
Banking net interest income - on a reported basis
|
11,253
|
|
11,722
|
|
10,599
|
|
|
- of
which:
|
|
|
|
|||
|
The
Hongkong and Shanghai Banking Corporation Limited
|
5,431
|
|
5,710
|
|
5,439
|
|
|
HSBC
UK Bank plc
|
3,027
|
|
3,046
|
|
2,662
|
|
|
HSBC
Bank plc
|
1,376
|
|
1,477
|
|
1,104
|
|
Banking NII adjusts our NII primarily for the impact of
funding trading and fair value activities reported in interest
expense. It represents the Group’s banking revenue that is
directly impacted by changes in interest rates. It is defined as
Group net interest income after deducting:
-
the internal cost
to fund trading and fair value net assets for which associated
revenue is reported in ‘Net income from financial instruments
held for trading or managed on a fair value basis’, also
referred to as ‘trading and fair value income’. These
funding costs reflect proxy overnight or term interest rates as
applied by internal funds transfer pricing;
-
the funding cost of
foreign exchange swaps in Markets Treasury, where an offsetting
income or loss is recorded in trading and fair value income. These
instruments are used to manage foreign currency deployment and
funding in our entities; and
-
third-party net
interest income in our insurance business.
In our
segmental disclosures, the funding costs of trading and fair value
net assets are predominantly recorded in CIB in ‘net income
from financial instruments held for trading or managed on a fair
value basis’. On consolidation, this funding is eliminated in
Corporate Centre, resulting in an increase in the funding cost
reported in net interest income with an equivalent offsetting
increase in ‘net income from financial instruments held for
trading or managed on a fair value basis’ in this segment. In
the consolidated Group results, the cost to fund these trading and
fair value net assets is reported in net interest
income.
Banking
NII was $11.3bn in 1Q26, an increase of $0.7bn or 6% compared with
1Q25, mainly driven by deposit growth, and the benefit of
reinvestment of our structural hedge at higher yields. This was
partly offset by an adverse $0.1bn one-off item in 1Q26. The
funding costs associated with generating trading and fair value
income were $2.4bn, broadly stable compared with 1Q25.
The
internally allocated funding to generate trading and fair value
income was approximately $243bn at 1Q26, a rise of approximately
$43bn since 1Q25, and up $18bn compared with 4Q25. This relates to
trading, fair value and associated net asset balances predominantly
in CIB.
Balance sheet
Summary
consolidated balance sheet
|
|
At
|
|
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
|
|
|
|
|
$m
|
$m
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash and balances at central banks
|
214,707
|
|
242,859
|
|
|
|
Trading assets
|
365,667
|
|
366,153
|
|
|
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
138,535
|
|
133,063
|
|
|
|
Derivatives
|
267,583
|
|
237,740
|
|
|
|
Loans and advances to banks
|
100,297
|
|
108,462
|
|
|
|
Loans and advances to customers
|
1,001,957
|
|
988,399
|
|
|
|
Reverse repurchase agreements - non-trading
|
314,864
|
|
298,392
|
|
|
|
Financial investments
|
580,632
|
|
567,211
|
|
|
|
Assets held for sale
|
11,583
|
|
11,115
|
|
|
|
Other assets
|
310,186
|
|
279,640
|
|
|
|
Total assets
|
3,306,011
|
|
3,233,034
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits by banks
|
87,581
|
|
97,952
|
|
|
|
Customer accounts
|
1,781,761
|
|
1,786,828
|
|
|
|
Repurchase agreements - non-trading
|
216,162
|
|
204,974
|
|
|
|
Trading liabilities
|
80,646
|
|
72,122
|
|
|
|
Financial liabilities designated at fair value
|
167,693
|
|
158,456
|
|
|
|
Derivatives
|
259,845
|
|
237,854
|
|
|
|
Debt securities in issue
|
101,742
|
|
99,675
|
|
|
|
Insurance contract liabilities
|
128,070
|
|
122,955
|
|
|
|
Liabilities of disposal groups held for sale
|
20,719
|
|
23,382
|
|
|
|
Other liabilities
|
264,522
|
|
223,170
|
|
|
|
Total liabilities
|
3,108,741
|
|
3,027,368
|
|
|
|
Equity
|
|
|
|
|
|
|
Total shareholders' equity
|
196,819
|
|
198,225
|
|
|
|
Non-controlling interests
|
451
|
|
7,441
|
|
|
|
Total equity
|
197,270
|
|
205,666
|
|
|
|
Total liabilities and equity
|
3,306,011
|
|
3,233,034
|
|
|
|
Combined view of customer lending and customer
deposits
|
||||||
|
|
At
|
|||||
|
|
31 Mar 2026
|
31 Dec 2025
|
|
|||
|
|
$m
|
$m
|
|
|||
|
Loans and advances to customers
|
1,001,957
|
|
988,399
|
|
|
|
|
Loans and advances to customers of disposal groups reported in
'Assets held for sale'
|
4,910
|
|
2,190
|
|
|
|
|
-
business in Malta
|
3,191
|
|
-
|
|
|
|
|
-
Germany custody business
|
316
|
|
323
|
|
|
|
|
-
business in South Africa
|
-
|
|
431
|
|
|
|
|
-
retail banking business in Sri Lanka
|
98
|
|
101
|
|
|
|
|
-
business in Uruguay
|
1,304
|
|
1,314
|
|
|
|
|
-
other
|
-
|
|
21
|
|
|
|
|
Non-current
assets held for sale
|
645
|
|
1,303
|
|
|
|
|
Combined customer lending
|
1,007,512
|
|
991,892
|
|
|
|
|
Currency translation
|
|
|
(6,589
|
)
|
|
|
|
Combined customer lending at constant currency
|
1,007,512
|
|
985,303
|
|
|
|
|
Customer accounts
|
1,781,761
|
|
1,786,828
|
|
|
|
|
Customer
accounts reported in 'Liabilities of disposal groups held for
sale'
|
19,007
|
|
16,173
|
|
|
|
|
-
business in Malta
|
7,276
|
|
-
|
|
|
|
|
-
Germany custody business
|
9,772
|
|
12,316
|
|
|
|
|
-
business in South Africa
|
-
|
|
2,056
|
|
|
|
|
-
retail banking business in Sri Lanka
|
426
|
|
430
|
|
|
|
|
-
business in Uruguay
|
1,534
|
|
1,369
|
|
|
|
|
-
other
|
-
|
|
2
|
|
|
|
|
Combined customer deposits
|
1,800,768
|
|
1,803,001
|
|
|
|
|
Currency translation
|
|
|
(14,563
|
)
|
|
|
|
Combined customer deposits at constant currency
|
1,800,768
|
|
1,788,438
|
|
|
|
Balance
sheet commentary – 31 March 2026 compared with 31 December
2025
At 31
March 2026, our total assets of $3.3tn were $73.0bn higher on a
reported basis and included the adverse effects of foreign currency
translation differences of $25.1bn. On a constant currency basis,
total assets were $98.1bn higher, as increases in derivative
assets, settlement balances, loans and advances to customers,
reverse repos and financial investments were partly offset by a
decrease in cash and balances at central banks.
Loans
and advances to customers as a percentage of customer accounts were
56.2%, compared with 55.3% at 31 December 2025.
Loans and advances to customers of $1.0tn were $13.6bn
higher on a reported basis. This included an adverse effect of
foreign currency translation differences of $6.5bn. On a constant
currency basis, customer lending balances increased by
$20.1bn.
The
following movements are on a constant currency basis.
In CIB,
customer lending increased by $12.0bn, which included an increase
in GTS lending in the Middle East, Singapore and India. There was
also lending growth in the US and Hong Kong, partly offset by a
decrease in Mexico.
In our
UK business, customer lending rose by $4.4bn, primarily driven by
continued growth in commercial lending and mortgage
balances.
In our
Hong Kong business, customer lending increased by $2.4bn, driven by
higher term and other lending balances across commercial and retail
customers.
In our
IWPB business, customer lending rose by $1.2bn, reflecting growth
in Private Bank lending notably in Hong Kong and Singapore. This
was partly offset by the classification to ‘assets of
disposal groups held for sale‘ of loans from the planned sale
of our business in Malta.
Customer accounts of $1.8tn decreased by $5.1bn on a
reported basis. This included the adverse effects of foreign
currency translation differences of $14.2bn. On a constant currency
basis, customer accounts increased by $9.2bn.
The
following movements are on a constant currency basis.
In CIB,
customer accounts increased by $10.5bn. This included growth in
balances in Hong Kong, reflecting new client mandates in Securities
Services, partly offset by the classification to ‘liabilities
of disposal groups held for sale‘ of $2.0bn of deposits from
the planned sale of our business in Malta.
In
IWPB, customer accounts decreased by $1.1bn reflecting the
classification to ‘liabilities of disposal groups held for
sale‘ of $5.2bn of deposits from the planned sale of our
business in Malta. This was partly offset by growth in deposits in
Private Bank notably in Hong Kong, and retail deposits in the
US.
In our
Hong Kong and UK businesses, customer accounts remained broadly
stable.
Total shareholders‘ equity, including non-controlling
interests, of $197bn decreased by $8bn or 4% compared with 31
December 2025. Profit generated of $7bn was more than offset by the
impact of the $13.7bn privatisation of Hang Seng Bank, which
comprised the derecognition of $7bn in non-controlling interests
and a residual $6.7bn reduction in shareholders‘ equity. In
addition, there were losses through other comprehensive income of
$3bn.
Financial investments
As part
of our interest rate hedging strategy, we hold a portfolio of debt
instruments, reported within financial investments, which are
classified as hold-to-collect-and-sell. As a result, the change in
value of these instruments is recognised through ‘debt
instruments at fair value through other comprehensive income’
in equity. At 1Q26, we recognised a pre-tax cumulative unrealised
loss reserve through other comprehensive income of $2.4bn related
to these hold-to-collect-and-sell positions, excluding investments
held in our insurance business. This compared with an unrealised
loss of $1.1bn at 4Q25, and reflected a $1.3bn pre-tax loss in
1Q26, inclusive of movements on related fair value
hedges.
We also
hold a portfolio of financial investments measured at amortised
cost, which are classified as hold-to-collect and are held to
manage our interest rate exposure. At 1Q26, the debt instruments
within this portfolio had a cumulative unrecognised loss of $1.8bn,
representing a $1.4bn deterioration during 1Q26.
Risk-weighted assets
RWAs of
$883.8bn decreased by $4.8bn compared with 31 December 2025,
primarily due to lower market risk RWAs of $6.3bn, mainly due to a
reduction of structural foreign exchange exposures following
completion of the privatisation of Hang Seng Bank and a $5.0bn fall
from foreign currency translation differences. Further decreases
reflected the $3.5bn impact from strategic transactions and credit
quality improvements of $3.1bn, mainly in our Hong Kong business.
This was offset mainly by higher corporate lending in our CIB and
UK businesses, and Saudi Awwal Bank (‘SAB‘) within
Corporate Centre.
➢
For further details
on RWAs, see page 47.
View of
customer deposits by type
The
following table, introduced at 1Q26, shows a view of customer
deposits by type. Instant access/demand deposits include current
accounts and savings accounts that can be contractually accessed on
demand by the customer with no or limited conditions on withdrawal.
Fixed term deposits include term deposits, and instant
access/demand deposits where withdrawal is contractually permitted
but subject to conditions impacting withdrawal.
|
Customer deposits - legal entities
|
|||||||||||||||||
|
|
At 31 Mar 2026
|
|
|||||||||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Total
|
|
||||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
||||||||
|
Instant
access/demand deposits ('IA/D')
|
287,984
|
|
223,165
|
|
581,050
|
|
29,054
|
|
92,393
|
|
20,050
|
|
7,474
|
|
1,241,170
|
|
|
|
Fixed term deposits
|
82,619
|
|
90,406
|
|
338,520
|
|
9,128
|
|
7,558
|
|
8,235
|
|
4,125
|
|
540,591
|
|
|
|
Total customer accounts
|
370,603
|
|
313,571
|
|
919,570
|
|
38,182
|
|
99,951
|
|
28,285
|
|
11,599
|
|
1,781,761
|
|
|
|
IA/D to
total customer accounts ratio (%)
|
78
|
|
71
|
|
63
|
|
76
|
|
92
|
|
71
|
|
64
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and advances to customers
|
311,494
|
|
103,572
|
|
479,119
|
|
24,420
|
|
55,361
|
|
24,068
|
|
3,923
|
|
1,001,957
|
|
|
|
Loan to
IA/D ratio (%)
|
108
|
|
46
|
|
82
|
|
84
|
|
60
|
|
120
|
|
52
|
|
81
|
|
|
|
Loan to
total customer accounts ratio (%)
|
84
|
|
33
|
|
52
|
|
64
|
|
55
|
|
85
|
|
34
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31
Dec 2025
|
|
|||||||||||||||
|
Instant
access/demand deposits
|
293,276
|
|
216,100
|
|
570,222
|
|
28,701
|
|
91,189
|
|
21,138
|
|
6,006
|
|
1,226,632
|
|
|
|
Fixed term deposits
|
83,627
|
|
105,351
|
|
341,503
|
|
8,309
|
|
8,269
|
|
8,355
|
|
4,782
|
|
560,196
|
|
|
|
Total customer accounts
|
376,903
|
|
321,451
|
|
911,725
|
|
37,010
|
|
99,458
|
|
29,493
|
|
10,788
|
|
1,786,828
|
|
|
|
IA/D to
total customer accounts ratio (%)
|
78
|
|
67
|
|
63
|
|
78
|
|
92
|
|
72
|
|
56
|
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
and advances to customers
|
310,116
|
|
106,409
|
|
467,842
|
|
22,618
|
|
52,178
|
|
25,252
|
|
3,984
|
|
988,399
|
|
|
|
Loan to
IA/D ratio (%)
|
106
|
|
49
|
|
82
|
|
79
|
|
57
|
|
119
|
|
66
|
|
81
|
|
|
|
Loan to
total customer accounts ratio (%)
|
82
|
|
33
|
|
51
|
|
61
|
|
52
|
|
86
|
|
37
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business disposals
During
the first quarter of 2026, we recognised a pre-tax loss on disposal
of $0.3bn related to the planned sale of our business in Malta and
a loss of $0.2bn following completion of the sale of our UK life
insurance entity. We reported balances of $11.6bn in assets held
for sale and $20.7bn in liabilities held for sale at 31 March
2026, which were predominantly business groups that met held for
sale criteria. This included reclassification to held for sale of
$8.3bn in assets and $8.2bn in liabilities in respect of our
business in Malta, which was offset by derecognitions following
completion of the sale of our UK life insurance entity and our
business in South Africa.
On 4
May 2026, PT Bank HSBC Indonesia, an indirect subsidiary of HSBC
Holdings, entered into a binding agreement to sell its retail
banking business to PT Bank OCBC NISP Tbk. The transaction, which
is subject to regulatory approval, is expected to complete in the
first half of 2027, at which point, subject to variable
consideration terms, an estimated up to $0.4bn pre-tax gain will be
recognised.
On 30
April 2026, The Hongkong and Shanghai Banking Corporation Limited
completed the sale of its retail banking business in Sri Lanka to
Nations Trust Bank PLC. An immaterial pre-tax gain on disposal was
recognised following completion.
On 27
February 2026, HSBC Bank plc completed the transfer of its business
in South Africa to local lender FirstRand Bank Ltd. Prior to their
derecognition at completion, as at 31 December 2025, related
balances stood at $0.4bn in assets and $2.1bn in liabilities. Upon
subsequent wind-down of the entity, expected in the second half of
2026, cumulative foreign currency translation reserves and other
reserves will recycle to the income statement. At 31 March 2026,
foreign currency translation reserve and other reserve losses stood
at $0.2bn.
On 30
January 2026, HSBC Bank plc completed the sale of its UK life
insurance entity, HSBC Life (UK) Limited, to Chesnara plc. Prior to
their derecognition at completion, as at 31 December 2025, related
balances stood at $6.6bn in assets and $6.4bn in liabilities. On
completion, we recognised a loss of $0.2bn following the recycling
of foreign currency translation reserves to the income
statement.
On 16
September 2025, HSBC Continental Europe entered into a put option
agreement with CrediaBank S.A. for the potential sale of its 70.03%
majority stake in HSBC Bank Malta plc. On 22 December 2025,
following completion of the employee information and consultation
process in France and in line with the put option terms, a sale and
purchase agreement was signed. As at 31 March 2026, given that the
operational readiness and transition activities were expected to be
substantially completed within 12 months, and with legal completion
anticipated shortly after, we judged the disposal group met the
held for sale criteria. As a result, $8.3bn of assets and $8.2bn of
liabilities were classified as held for sale and a pre-tax loss on
disposal of $0.3bn was recognised. The transaction remains subject
to regulatory approval.
On 27
July 2025, HSBC Latin America Holdings (UK) Limited entered into a
binding agreement to sell HSBC Bank (Uruguay) S.A. to a subsidiary
of BTG Pactual Holding SA. The disposal group met the held for sale
criteria and an immaterial loss on disposal was recognised in the
third quarter of 2025, with balances remaining classified as held
for sale at 31 March 2026 of $2.2bn in assets and $2.0bn in
liabilities. The transaction, which is subject to regulatory
approvals, is expected to complete in the second half of
2026.
On 11
July 2025, HSBC Continental Europe, a wholly-owned subsidiary of
HSBC Bank plc, reached an agreement to sell its fund administration
business, Internationale Kapitalanlagegesellschaft mbH, to BlackFin
Capital Partners S.A.S. The disposal group met the held for sale
criteria in the third quarter of 2025, with immaterial balances
remaining classified as held for sale at 31 March 2026. This
transaction, which has received regulatory approval, is expected to
complete in the second half of 2026, at which point an immaterial
gain on disposal will be recognised.
On 27
June 2025, HSBC Continental Europe reached an agreement to sell its
custody business in Germany to BNP Paribas. This transaction will
be completed in a phased manner, with the initial phase completed
in the first quarter of 2026. While client consent and related
operational requirements may extend the timing for completion of
all client transfers, given the signing of a sale and purchase
agreement, the disposal group met the held for sale criteria in the
second quarter of 2025, with balances remaining classified as held
for sale at 31 March 2026 of $0.4bn in assets and $10.1bn in
liabilities. The sale is expected to generate an estimated pre-tax
gain on disposal of $0.1bn, which will be recognised in line with
completion of client transfers.
|
|
Events after the balance sheet date
On 30
April 2026, The Hongkong and Shanghai Banking Corporation Limited
completed the sale of its retail banking business in Sri Lanka to
Nations Trust Bank PLC. An immaterial pre-tax gain on disposal was
recognised following completion.
On 4
May 2026, PT Bank HSBC Indonesia, an indirect subsidiary of HSBC
Holdings, entered into a binding agreement to sell its retail
banking business to PT Bank OCBC NISP Tbk. The transaction, which
is subject to regulatory approval, is expected to complete in the
first half of 2027, at which point, subject to variable
consideration terms, an estimated up to $0.4bn pre-tax gain will be
recognised.
Business
segments
Our
business segments – Hong Kong, UK, Corporate and
Institutional Banking and International Wealth and Premier Banking
– along with Corporate Centre – are our reportable
segments under IFRS 8 ‘Operating
Segments’.
The
Group Operating Committee is considered the Chief Operating
Decision Maker (‘CODM’) for the purposes of identifying
the Group’s reportable segments. Business segment results are
assessed by the CODM on the basis of constant currency performance.
We separately disclose ‘notable items’, as described on
page 5.
Our
operations are closely integrated and, accordingly, the
presentation of data includes internal allocations of certain items
of income and expense. These allocations include the costs of
certain support services and global infrastructures to the extent
that they can be meaningfully attributed to business segments.
While such allocations have been made on a systematic and
consistent basis, they necessarily involve a degree of
subjectivity. Costs that are not allocated to business segments are
included in Corporate Centre.
Where
relevant, income and expense amounts presented include the results
of inter-segment funding along with inter-company and
inter-business line transactions. All such transactions are
undertaken on arm‘s length terms. The intra-Group elimination
items for business segments are presented in Corporate
Centre.
As
required by IFRS 8, reconciliations of the constant currency
results to the Group’s reported results are presented on
page 22. Supplementary reconciliations of constant currency to
reported results by business segment are presented on pages 23 to
25 for information purposes.
Effective
1 January 2026, we transferred certain clients, primarily in Hong
Kong and the UK, to the CIB segment to better meet their needs.
This transfer does not change the Group’s reportable
segments. Comparative periods have been re-presented accordingly.
The re-presentation has no impact on the Group’s consolidated
financial results or financial position.
|
|
Hong Kong – constant currency basis
|
Results – on a constant currency basis
|
|
|||||||||||
|
|
Quarter ended
|
|||||||||||
|
|
|
|
|
Variance
|
||||||||
|
|
|
|
|
1Q26 vs. 1Q25
|
||||||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
||||||
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
||||||
|
Revenue
|
4,024
|
|
3,954
|
|
3,915
|
|
109
|
|
3
|
|
—
|
|
|
ECL
|
(208
|
)
|
(307
|
)
|
(315
|
)
|
107
|
|
34
|
|
—
|
|
|
Operating expenses
|
(1,227
|
)
|
(1,299
|
)
|
(1,136
|
)
|
(91
|
)
|
(8
|
)
|
—
|
|
|
Share
of profit/(loss) from associates and joint ventures
|
—
|
|
—
|
|
—
|
|
—
|
|
0
|
—
|
|
|
|
Profit before tax
|
2,589
|
|
2,348
|
|
2,464
|
|
125
|
|
5
|
|
—
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
Management
view of revenue - on a constant currency basis
|
|
|
|
Quarter ended
|
|
|||||||||||
|
|
|
|
|
Variance
|
|
||||||||
|
|
|
|
|
1Q26 vs. 1Q25
|
|||||||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|||||||
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|
||||||
|
Banking NII2
|
2,905
|
|
3,180
|
|
2,962
|
|
(57
|
)
|
(2
|
)
|
-
|
|
|
|
Fee and other income
|
1,119
|
|
774
|
|
953
|
|
166
|
|
17
|
|
-
|
|
|
|
- Retail Banking and Wealth
|
798
|
|
545
|
|
658
|
|
140
|
|
21
|
|
-
|
|
|
|
-
Retail Banking
|
95
|
|
65
|
|
86
|
|
9
|
|
10
|
|
-
|
|
|
|
-
Wealth
|
673
|
|
457
|
|
544
|
|
129
|
|
24
|
|
-
|
|
|
|
-
Other3
|
30
|
|
23
|
|
28
|
|
2
|
|
7
|
-
|
|
|
|
|
- Commercial Banking
|
321
|
|
229
|
|
295
|
|
26
|
|
9
|
|
-
|
|
|
|
-
Wholesale Transaction Banking
|
193
|
|
171
|
|
177
|
|
16
|
|
9
|
|
-
|
|
|
|
-
Credit and Lending
|
26
|
|
16
|
|
26
|
|
-
|
|
-
|
|
-
|
|
|
|
-
Other3
|
102
|
|
42
|
|
92
|
|
10
|
|
11
|
|
-
|
|
|
|
Revenue excluding notable items
|
4,024
|
|
3,954
|
|
3,915
|
|
109
|
|
3
|
|
-
|
|
|
|
Notable items
|
-
|
|
-
|
|
-
|
|
-
|
|
n/a
|
-
|
|
|
|
|
Revenue
|
4,024
|
|
3,954
|
|
3,915
|
|
109
|
|
3
|
|
-
|
|
|
|
RoTE
(annualised)4 (%)
|
44.7
|
|
36.8
|
|
|
|
|
||||||
|
RoTE
excluding notable items (annualised)4 (%)
|
44.7
|
|
37.0
|
|
|
|
|
||||||
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
2 For a
description of how we derive banking NII, see page 11. In the Hong
Kong business, there are no adjustments to NII to derive banking
NII.
3
Includes revenue from Markets Treasury. It also includes other
non-product-specific income and notional tax credits.
4 For
details of our RoTE calculation by business segment, see page
32.
|
Notable items
|
|||
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Operating expenses
|
|
|
|
|
Restructuring and other related costs
|
(4)
|
(6)
|
(7)
|
|
Currency
translation on operating expenses notable items
|
—
|
—
|
—
|
1Q26
compared with 1Q25
Profit
before tax of $2.6bn increased by $0.1bn or 5% compared with 1Q25
on a constant currency basis.
Revenue
of $4.0bn was $0.1bn or 3% higher on a constant currency
basis.
Banking
NII of $2.9bn decreased by $0.1bn or 2%. The decrease was mainly
due to margin compression on deposits in a lower interest rate
environment and an adverse one-off impact of $0.1bn in 1Q26, which
more than offset the impact of deposit balance growth.
Fee and
other income of $1.1bn grew by $0.2bn or 17%, primarily driven by
higher Wealth revenue, underpinned by strong performance in
investment distribution driven by higher customer activity and
invested asset balance growth.
ECL of
$0.2bn in 1Q26 were $0.1bn lower than in 1Q25 on a constant
currency basis, reflecting higher recoveries related to the Hong
Kong commercial real estate (‘CRE‘)
sector.
Operating
expenses of $1.2bn increased by $0.1bn or 8% on a constant currency
basis, driven by continued investment in our Wealth business, the
phasing of the performance-related pay accrual relative to 1Q25 and
the impacts of inflation. These increases were partly mitigated by
cost reductions from our organisational simplification and lower
marketing expenses.
|
|
UK – constant currency basis
|
Results – on a constant currency basis
|
|
|||||
|
|
Quarter ended
|
|||||
|
|
|
|
|
Variance
|
||
|
|
|
|
|
1Q26 vs. 1Q25
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
3,250
|
3,293
|
3,107
|
143
|
5
|
—
|
|
ECL
|
(203)
|
(101)
|
(181)
|
(22)
|
(12)
|
—
|
|
Operating expenses
|
(1,402)
|
(1,478)
|
(1,348)
|
(54)
|
(4)
|
—
|
|
Share
of profit/(loss) from associates and joint ventures
|
—
|
—
|
—
|
—
|
0
|
—
|
|
Profit before tax
|
1,645
|
1,714
|
1,578
|
67
|
4
|
—
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
|
Management view of revenue – on a constant currency
basis
|
|
||||||||||||||||||||||||||
|
|
Quarter ended
|
|||||
|
|
|
|
|
Variance
|
||
|
|
|
|
|
1Q26 vs. 1Q25
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
2,807
|
2,892
|
2,668
|
139
|
5
|
—
|
|
Fee and other income
|
443
|
401
|
439
|
4
|
1
|
—
|
|
– Retail Banking and Wealth
|
182
|
132
|
163
|
19
|
12
|
—
|
|
–
Retail Banking
|
72
|
52
|
67
|
5
|
7
|
—
|
|
– Wealth
|
88
|
72
|
92
|
(4)
|
(4)
|
—
|
|
–
Other3
|
22
|
8
|
4
|
18
|
>100
|
—
|
|
– Commercial Banking
|
261
|
269
|
276
|
(15)
|
(5)
|
—
|
|
– Wholesale Transaction Banking
|
202
|
206
|
218
|
(16)
|
(7)
|
—
|
|
– Credit and Lending
|
61
|
65
|
56
|
5
|
9
|
—
|
|
–
Other3
|
(2)
|
(2)
|
2
|
(4)
|
>(100)
|
—
|
|
Revenue excluding notable items
|
3,250
|
3,293
|
3,107
|
143
|
5
|
—
|
|
Notable items
|
—
|
—
|
—
|
—
|
n/a
|
—
|
|
Revenue
|
3,250
|
3,293
|
3,107
|
143
|
5
|
—
|
|
RoTE
(annualised)4 (%)
|
21.5
|
|
21.9
|
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
21.6
|
|
21.9
|
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
2 For a
description of how we derive banking NII, see page 11. In the UK
business, there are no adjustments to NII to derive banking
NII.
3
Includes revenue from Markets Treasury. It also includes other
non-product-specific income and notional tax credits.
4 For
details of our RoTE calculation by business segment, see page
32.
|
Notable items
|
|||
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Operating expenses
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
—
|
—
|
|
Restructuring and other related costs
|
(8)
|
(7)
|
(4)
|
|
Currency
translation on operating expenses notable items
|
—
|
—
|
(1)
|
1Q26
compared with 1Q25
Profit
before tax of $1.6bn was $0.1bn or 4% higher than in 1Q25 on a
constant currency basis.
Revenue
of $3.3bn was $0.1bn or 5% higher on a constant currency
basis.
Banking
NII of $2.8bn increased by $0.1bn or 5%, reflecting the continued
benefit of our structural hedge, higher corporate and retail
lending balances, and growth in deposit balances, partly offset by
the impact of lower interest rates.
Fee and
other income of $0.4bn was broadly stable on a constant currency
basis.
ECL of
$0.2bn increased by $22m on a constant currency basis. This
reflected heightened uncertainty and a deterioration in the forward
economic outlook due to the onset of the conflict in the Middle
East on 28 February 2026.
Operating
expenses of $1.4bn increased by $0.1bn on a constant currency
basis, with an increase in costs incurred on branch security given
the heightened risk environment, continued investment in technology
and the impact of inflation. These increases were partly mitigated
by cost reductions from our organisational
simplification.
|
|
Corporate and Institutional Banking – constant currency
basis
|
Results – on a constant currency basis
|
|
|||||
|
|
Quarter ended
|
|||||
|
|
|
|
|
Variance
|
||
|
|
|
|
|
1Q26 vs. 1Q25
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
7,788
|
7,054
|
7,651
|
137
|
2
|
(14)
|
|
ECL
|
(679)
|
(235)
|
(181)
|
(498)
|
>(100)
|
—
|
|
Operating expenses
|
(3,772)
|
(4,143)
|
(3,674)
|
(98)
|
(3)
|
73
|
|
Share
of profit/(loss) from associates and joint ventures
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
3,337
|
2,676
|
3,796
|
(459)
|
(12)
|
59
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
|
Management view of revenue – on a constant currency
basis
|
||||||
|
|
Quarter ended
|
|||||
|
|
|
|
|
Variance
|
||
|
|
|
|
|
1Q26 vs. 1Q25
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
3,960
|
3,995
|
3,721
|
239
|
6
|
(9)
|
|
Fee and other income
|
3,822
|
3,061
|
3,930
|
(108)
|
(3)
|
(11)
|
|
– Wholesale Transaction Banking
|
2,686
|
2,284
|
2,624
|
62
|
2
|
(1)
|
|
– Investment Banking
|
260
|
210
|
254
|
6
|
2
|
(10)
|
|
– Debt and Equity Markets
|
751
|
381
|
1,009
|
(258)
|
(26)
|
(1)
|
|
– Wholesale Credit and Lending
|
170
|
175
|
147
|
23
|
16
|
—
|
|
–
Other3
|
(45)
|
11
|
(104)
|
59
|
57
|
1
|
|
Revenue excluding notable items
|
7,782
|
7,056
|
7,651
|
131
|
2
|
(20)
|
|
Notable items
|
6
|
(2)
|
—
|
6
|
>100
|
6
|
|
Revenue
|
7,788
|
7,054
|
7,651
|
137
|
2
|
(14)
|
|
RoTE
(annualised)4 (%)
|
17.0
|
|
19.3
|
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
17.2
|
|
19.7
|
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
2 For a
description of how we derive banking NII, see page 11. In CIB,
there are no adjustments to NII to derive banking NII. The internal
funding costs of trading and fair value net assets are recorded in
’fee and other income’. On consolidation, this funding
is eliminated in Corporate Centre. In 1Q26, this funding cost was
$2.4bn (4Q25: $2.6bn, 1Q25: $2.5bn).
3
Includes revenue from Markets Treasury and principal investments.
It also includes other non-product-specific income and notional tax
credits.
4 For
details of our RoTE calculation by business segment, see page
32.
|
Notable items
|
|||
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
6
|
(3)
|
—
|
|
Currency
translation on revenue notable items
|
—
|
1
|
—
|
|
Operating expenses
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(12)
|
(77)
|
(26)
|
|
Restructuring and other related costs
|
(19)
|
(73)
|
(46)
|
|
Currency
translation on operating expenses notable items
|
—
|
(2)
|
(7)
|
1Q26
compared with 1Q25
Profit
before tax of $3.3bn was $0.5bn or 12% lower than in 1Q25 on a
constant currency basis.
Revenue
of $7.8bn was $0.1bn or 2% higher on a constant currency
basis.
Banking
NII of $4.0bn increased by $0.2bn or 6% primarily reflecting
increased funding deployed into trading activities on higher
bullion balances, and strong financing demand across developed and
emerging markets.
Fee and
other income of $3.8bn was $0.1bn or 3% lower than in
1Q25.
-
In Debt and Equity
Markets, fee and other income decreased by $0.3bn or 26% primarily
reflecting higher funding costs associated with trading activities
on higher bullion balances, and lower fees compared with a stronger
1Q25.
-
In Wholesale
Transaction Banking, fee and other income increased by $0.1bn,
driven by higher volumes and new mandates across Securities
Services, GPS and GTS. There was also a one-off recovery fee in
GTS
-
In Other, fee and
other income increased by $0.1bn, reflecting growth in principal
investments.
ECL of
$0.7bn in 1Q26 increased by $0.5bn compared with 1Q25 on a constant
currency basis. The charge in 1Q26 primarily reflected a $0.4bn
fraud-related, secondary, securitisation exposure in the UK with a
financial sponsor, as well as an increase in allowances to reflect
heightened uncertainty and a deterioration in the forward economic
outlook due to the onset of the conflict in the Middle East on 28
February 2026.
Operating
expenses of $3.8bn were $0.1bn or 3% higher on a constant currency
basis, reflecting the phasing of the performance-related pay
accrual relative to 1Q25 and the impact of inflation. These
increases were partly mitigated by cost reductions from our
organisational simplification.
|
|
International Wealth and Premier Banking – constant currency
basis
|
Results – on a constant currency basis
|
|
|||||
|
|
Quarter ended
|
|||||
|
|
|
|
|
Variance
|
||
|
|
|
|
|
1Q26 vs. 1Q25
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
3,749
|
3,732
|
3,693
|
56
|
2
|
(217)
|
|
ECL
|
(210)
|
(243)
|
(255)
|
45
|
18
|
—
|
|
Operating expenses
|
(2,333)
|
(2,500)
|
(2,221)
|
(112)
|
(5)
|
20
|
|
Share
of profit/(loss) from associates and joint ventures
|
25
|
(2)
|
11
|
14
|
>100
|
—
|
|
Profit before tax
|
1,231
|
987
|
1,228
|
3
|
—
|
(197)
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
|
Management view of revenue – on a constant currency
basis
|
|||||||||
|
|
Quarter ended
|
||||||||
|
|
|
|
|
Variance
|
|||||
|
|
|
|
|
1Q26
vs. 1Q25
|
|||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|||
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|||
|
Banking NII2
|
1,750
|
1,807
|
1,822
|
(72
|
)
|
(4
|
)
|
(22
|
)
|
|
Fee and other income
|
2,166
|
1,830
|
1,887
|
279
|
|
15
|
|
(44
|
)
|
|
– Retail Banking
|
229
|
187
|
168
|
61
|
|
36
|
|
(1
|
)
|
|
–
Wealth
|
1,936
|
1,626
|
1,715
|
221
|
|
13
|
|
(43
|
)
|
|
–
Other3
|
1
|
17
|
4
|
(3
|
)
|
(75
|
)
|
—
|
|
|
Revenue excluding notable items
|
3,916
|
3,637
|
3,709
|
207
|
|
6
|
|
(66
|
)
|
|
Notable items
|
(167)
|
95
|
(16)
|
(151
|
)
|
>(100)
|
(151
|
)
|
|
|
Revenue
|
3,749
|
3,732
|
3,693
|
56
|
|
2
|
|
(217
|
)
|
|
RoTE
(annualised)4 (%)
|
22.7
|
|
19.2
|
|
|
|
|||
|
RoTE
excluding notable items (annualised)4 (%)
|
27.4
|
|
19.9
|
|
|
|
|||
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
2 For a
description of how we derive banking NII, see page 11. Banking NII
in IWPB is computed by deducting third-party NII in our insurance
business from total
IWPB
NII, which was $48m in 1Q26 (4Q25: $67m, 1Q25: $113m). Total
Insurance NII is presented in ‘fee and other income‘ in
Wealth.
3
Includes allocated revenue from Markets Treasury and
hyperinflationary impacts. It also includes other
non-product-specific income.
4 For
details of our RoTE calculation by business segment, see page
32.
|
Notable items
|
||||
|
|
Quarter ended
|
|||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
|
$m
|
$m
|
$m
|
|
|
Revenue
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(167)
|
94
|
(14
|
)
|
|
Currency
translation on revenue notable items
|
—
|
1
|
(2
|
)
|
|
Operating expenses
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(6)
|
(29)
|
(4
|
)
|
|
Restructuring and other related costs
|
(21)
|
(53)
|
(23
|
)
|
|
Currency
translation on operating expenses notable items
|
—
|
(2)
|
(1
|
)
|
1Q26
compared with 1Q25
Profit
before tax of $1.2bn remained stable compared with 1Q25 on a
constant currency basis, including an adverse impact of $0.2bn from
strategic transactions.
Revenue
of $3.7bn was broadly stable on a constant currency basis compared
with 1Q25, including an adverse impact of $0.2bn from strategic
transactions.
Banking
NII of $1.8bn decreased by $0.1bn or 4%, primarily due to lower
interest rates on deposits, partly offset by balance sheet
growth.
Fee and
other income of $2.2bn was up by $0.3bn or 15%, driven by Wealth
due to growth across all products and in multiple markets,
including mainland China, Hong Kong, Singapore and
Taiwan.
In
Wealth, fee and other income of $1.9bn was up by $0.2bn or 13%
including an adverse impact from strategic
transactions.
-
Investment
distribution rose by $0.1bn or 29%, primarily due to higher sales
of mutual funds and structured products, mainly in
Asia.
-
-
Insurance income
was $0.1bn or 16% higher than in 1Q25, including the impact of
strategic transactions. The increase was driven by higher CSM
release given continued year-on-year growth in our CSM balance,
notably in Hong Kong, favourable experience variances, and the
non-recurrence of onerous contract losses, notably in mainland
China. Additionally, the insurance manufacturing CSM balance at
1Q26 was $15.2bn, up by $2.4bn or 19% compared with 1Q25. The
increase primarily reflected new business CSM growth of $0.3bn or
31%, partly offset by CSM release.
-
-
Private Bank
increased by $39m or 8%, as increased customer activity supported
by business initiatives led to strong performances in brokerage and
trading, and from higher annuity fees, driven by growth in invested
asset balances. This was partly offset by impacts from strategic
transactions.
In
Retail Banking, fee and other income of $0.2bn was up by $0.1bn or
36%, mainly driven by gains in Mexico from the disposal of minority
interests.
Notable
items in 1Q26 primarily related to losses of $0.2bn from the
recycling of foreign currency translation reserves following the
completion of the sale of our UK life insurance
business.
ECL of
$0.2bn in 1Q26 were $45m or 18% lower than in 1Q25 on a constant
currency basis. This reflected a reduction in charges in Mexico,
mainly due to lower unsecured lending, while credit performance
across the rest of the portfolio remained stable.
Operating
expenses of $2.3bn were $0.1bn or 5% higher than in 1Q25 on a
constant currency basis, primarily reflecting the phasing of the
performance-related pay accrual relative to 1Q25, continued
investments in Wealth, higher planned spend and investment in
technology, and the impact of inflation. These increases were
partly mitigated by cost reductions from our organisational
simplification.
|
|
Corporate Centre – constant currency basis
|
Results – on a constant currency basis
|
|
|||||||||||
|
|
Quarter ended
|
|||||||||||
|
|
|
|
|
Variance
|
||||||||
|
|
|
|
|
1Q26 vs. 1Q25
|
||||||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
||||||
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
||||||
|
Revenue
|
(187
|
)
|
(1,569
|
)
|
(47
|
)
|
(140
|
)
|
>(100)
|
(356
|
)
|
|
|
ECL
|
(1
|
)
|
(24
|
)
|
9
|
|
(10
|
)
|
>(100)
|
—
|
|
|
|
Operating expenses
|
13
|
|
31
|
|
(74
|
)
|
87
|
|
>100
|
(9
|
)
|
|
|
Share
of profit/(loss) from associates and joint ventures
|
749
|
|
683
|
|
834
|
|
(85
|
)
|
(10
|
)
|
—
|
|
|
Profit before tax
|
574
|
|
(879
|
)
|
722
|
|
(148
|
)
|
(20
|
)
|
(365
|
)
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
|
Management view of revenue – on a constant currency
basis
|
||||||
|
|
Quarter ended
|
|||||
|
|
|
|
|
Variance
|
||
|
|
|
|
|
1Q26 vs. 1Q25
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
of which strategic transactions1
|
|
|
$m
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
(169)
|
(68)
|
(166)
|
(3)
|
(2)
|
36
|
|
Fee and other income
|
322
|
(41)
|
195
|
127
|
65
|
(128)
|
|
Revenue excluding notable items
|
153
|
(109)
|
29
|
124)
|
>100
|
(92)
|
|
Notable
items
|
(340)
|
(1,460)
|
(76)
|
(264)
|
>(100)
|
(264)
|
|
Revenue3
|
(187)
|
(1,569)
|
(47)
|
(140)
|
>(100)
|
(356)
|
|
RoTE
(annualised)4 (%)
|
2.2
|
|
5.1
|
|
|
|
|
RoTE
excluding notable items (annualised)4 (%)
|
5.5
|
|
6.2
|
|
|
|
1
Impact of strategic transactions classified as material notable
items. For further details, see ‘Strategic transactions
supplementary analysis‘ on page 25.
2 For a
description of how we derive banking NII, see page 11. Corporate
Centre banking NII includes funding charges on property and
technology assets, and the banking NII of the French retained
portfolio of home and other loans prior to disposal.
3
Revenue from Markets Treasury, HSBC Holdings net interest expense
and hyperinflation are allocated out to the business segments, to
align them better with their revenue and expense. The total Markets
Treasury revenue component of this allocation for 1Q26 was $565m
(4Q25: $506m; 1Q25: $528m).
4 For
details of our RoTE calculation by business segment, see page
32.
|
Notable items
|
|||
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(340)
|
(1,450)
|
(77)
|
|
Dilution loss of interest in BoCom associate
|
—
|
—
|
|
|
Currency
translation on revenue notable items
|
—
|
(10)
|
1
|
|
Operating expenses
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(32)
|
(51)
|
(20)
|
|
Restructuring and other related costs
|
(76)
|
(118)
|
(61)
|
|
Legal
provisions
|
|
(10)
|
|
|
Currency
translation on operating expenses notable items
|
—
|
12
|
2
|
|
Impairment of interest in associate
|
—
|
—
|
—
|
|
Currency translation on associate notable items
|
—
|
—
|
—
|
1Q26
compared with 1Q25
Profit
before tax of $0.6bn was $0.1bn or 20% lower than in 1Q25, on a
constant currency basis.
Revenue
was $0.1bn lower on a constant currency basis, primarily due to the
impact of notable items. In 1Q26, these primarily comprised a
disposal loss on classification to held for sale of $0.3bn
associated with the planned sale of our business in Malta. In 1Q25,
notable items included $0.1bn of fair value losses on ADRs received
as part of the sale consideration for our business in
Argentina.
Banking
NII was a net expense of $0.2bn. This was stable compared with 1Q25
on a constant currency basis. Banking NII in 1Q26 excluded from NII
the internal cost to fund trading and fair value net assets,
predominantly in CIB, of $2.4bn (4Q25: $2.6bn, 1Q25:
$2.5bn).
Fee and
other income was $0.1bn higher reflecting property asset disposal
gains of $0.2bn, partly offset by the non-recurrence of fair value
gains on non-qualifying hedges related to our retained French
portfolio of home and certain other loans.
Operating
expenses were $0.1bn lower on a constant currency basis, primarily
driven by the phasing of recoveries of centrally managed costs and
cost reductions from our organisational
simplification.
Share
of profit from associates and joint ventures less impairment of
$0.7bn decreased by $0.1bn or 10% on a constant currency basis,
primarily due to a lower share of profit from BoCom following the
dilution in the Group‘s stake from 19.03% to 16.00% during
2025.
Supplementary
financial information
Reported and constant currency results
|
Reported and constant currency results1
|
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
Reported
|
18,624
|
16,364
|
17,649
|
|
Currency translation
|
—
|
100
|
670
|
|
Constant currency
|
18,624
|
16,464
|
18,319
|
|
Change in expected credit losses and other credit impairment
charges
|
|
|
|
|
Reported
|
(1,301)
|
(901)
|
(876)
|
|
Currency translation
|
—
|
(9)
|
(47)
|
|
Constant currency
|
(1,301)
|
(910)
|
(923)
|
|
Operating expenses
|
|
|
|
|
Reported
|
(8,721)
|
(9,330)
|
(8,102)
|
|
Currency translation
|
—
|
(59)
|
(351)
|
|
Constant currency
|
(8,721)
|
(9,389)
|
(8,453)
|
|
Share of profit in associates and joint ventures less
impairment
|
|
|
|
|
Reported
|
774
|
669
|
813
|
|
Currency translation
|
—
|
12
|
32
|
|
Constant currency
|
774
|
681
|
845
|
|
Profit before tax
|
|
|
|
|
Reported
|
9,376
|
6,802
|
9,484
|
|
Currency translation
|
—
|
44
|
304
|
|
Constant currency
|
9,376
|
6,846
|
9,788
|
|
Profit after tax
|
|
|
|
|
Reported
|
7,394
|
5,187
|
7,570
|
|
Currency translation
|
—
|
31
|
238
|
|
Constant currency
|
7,394
|
5,218
|
7,808
|
|
Loans and advances to external customers (net)
|
|
|
|
|
Reported
|
1,001,957
|
988,399
|
944,708
|
|
Currency translation
|
—
|
(6,520)
|
21,094
|
|
Constant currency
|
1,001,957
|
981,879
|
965,802
|
|
External customer accounts
|
|
|
|
|
Reported
|
1,781,761
|
1,786,828
|
1,666,485
|
|
Currency translation
|
—
|
(14,249)
|
29,635
|
|
Constant currency
|
1,781,761
|
1,772,579
|
1,696,120
|
1 In
the current period, constant currency results are equal to reported
as there is no currency translation.
|
Notable items
|
|
|||||||||||
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
(501)
|
(1,359)
|
(91)
|
|
Operating expenses
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
(50)
|
(157)
|
(50)
|
|
Restructuring
and other related costs2
|
(128)
|
(257)
|
(141)
|
|
Legal
provisions
|
—
|
(11)
|
—
|
|
Tax
|
|
|
|
|
Tax
credit on notable items
|
48
|
19
|
65
|
1 1Q26
includes $0.2bn on the recycling in foreign currency translation
reserve losses arising on completion of the sale of our UK life
insurance business, HSBC Life (UK) Limited, and $0.3bn of disposal
losses recognised upon the ‘held for sale‘
classification of HSBC Continental Europe’s shareholding in
HSBC Bank Malta plc. 4Q25 includes recycling of cumulative fair
value losses of $1.5bn relating to the French retained portfolio of
home and certain other loans following the completion of its sale
to a consortium comprising Rothesay Life plc and CCF. 1Q25 includes
$0.1bn of fair value losses on ADRs in Grupo Financiero Galicia
received as part of the sale consideration for our business in
Argentina.
2
Amounts include restructuring provisions related to organisational
simplification.
Reported and constant currency results – business
segments
|
Reported and constant currency results – business
segments
|
||||||
|
|
Quarter ended 31 Mar 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
4,024
|
3,250
|
7,788
|
3,749
|
(187)
|
18,624
|
|
ECL
|
(208)
|
(203)
|
(679)
|
(210)
|
(1)
|
(1,301)
|
|
Operating expenses
|
(1,227)
|
(1,402)
|
(3,772)
|
(2,333)
|
13
|
(8,721)
|
|
Share of profit in associates and joint ventures
|
—
|
—
|
—
|
25
|
749
|
774
|
|
Profit before tax
|
2,589
|
1,645
|
3,337
|
1,231
|
574
|
9,376
|
|
Loans
and advances to external customers (net)
|
224,698
|
300,415
|
325,332
|
151,366
|
146
|
1,001,957
|
|
External
customer accounts
|
528,277
|
345,963
|
628,239
|
278,927
|
355
|
1,781,761
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 31 Dec 2025
|
|||||
|
Revenue
|
3,954
|
3,293
|
7,054
|
3,732
|
(1,569)
|
16,464
|
|
ECL
|
(307)
|
(101)
|
(235)
|
(243)
|
(24
|
(910)
|
|
Operating expenses
|
(1,299)
|
(1,478)
|
(4,143)
|
(2,500)
|
31
|
(9,389)
|
|
Share
of profit in associates and joint ventures
|
—
|
—
|
—
|
(2)
|
683
|
681
|
|
Profit before tax
|
2,348
|
1,714
|
2,676
|
987
|
(879)
|
6,846
|
|
Loans
and advances to external customers (net)
|
222,313
|
295,988
|
313,293
|
150,146
|
139
|
981,879
|
|
External
customer accounts
|
528,386
|
346,068
|
617,760
|
280,023
|
342
|
1,772,579
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 31 Mar 2025
|
|||||
|
Revenue
|
3,915
|
3,107
|
7,651
|
3,693
|
(47)
|
18,319
|
|
ECL
|
(315)
|
(181)
|
(181)
|
(255)
|
9
|
(923)
|
|
Operating expenses
|
(1,136)
|
(1,348)
|
(3,674)
|
(2,221)
|
(74)
|
(8,453)
|
|
Share of profit in associates and joint ventures
|
—
|
—
|
—
|
11
|
834
|
845
|
|
Profit before tax
|
2,464
|
1,578
|
3,796
|
1,228
|
722
|
9,788
|
|
Loans
and advances to external customers (net)
|
226,337
|
280,976
|
312,230
|
146,081
|
178
|
965,802
|
|
External
customer accounts
|
493,159
|
337,078
|
590,424
|
275,056
|
403
|
1,696,120
|
|
Notable items – business segments
|
||||||
|
|
Quarter ended 31 Mar 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
Disposal,
wind-downs, acquisitions and related costs1
|
—
|
—
|
6
|
(167)
|
(340)
|
(501)
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposal,
wind-downs, acquisitions and related costs
|
—
|
—
|
(12)
|
(6)
|
(32)
|
(50)
|
|
Restructuring
and other related costs2
|
(4)
|
(8)
|
(19)
|
(21)
|
(76)
|
(128)
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 31 Dec 2025
|
|||||
|
Revenue
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
—
|
(3)
|
94
|
(1,450)
|
(1,359)
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
—
|
—
|
(77)
|
(29)
|
(51)
|
(157)
|
|
Restructuring
and other related costs2
|
(6)
|
(7)
|
(73)
|
(53)
|
(118)
|
(257)
|
|
Legal
provisions
|
—
|
—
|
(1)
|
—
|
(10)
|
(11)
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 31 Mar 2025
|
|||||
|
Revenue
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
—
|
—
|
(14)
|
(77)
|
(91)
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
—
|
—
|
(26)
|
(4)
|
(20)
|
(50)
|
|
Restructuring
and other related costs2
|
(7)
|
(4)
|
(46)
|
(23)
|
(61)
|
(141)
|
1 1Q26
includes $0.2bn on the recycling in foreign currency translation
reserve losses arising on completion of the sale of our UK life
insurance business HSBC Life (UK) Limited, and $0.3bn of disposal
losses recognised upon the ‘held for sale‘
classification of HSBC Continental Europe’s shareholding in
HSBC Bank Malta plc. 4Q25 includes recycling of cumulative fair
value losses of $1.5bn relating to the French retained portfolio of
home and certain other loans following the completion of its sale
to a consortium comprising Rothesay Life plc and CCF. 1Q25 includes
$0.1bn of fair value losses on ADRs in Grupo Financiero Galicia
received as part of the sale consideration for our business in
Argentina.
2
Amounts include restructuring provisions related to organisational
simplification.
|
Reconciliation of reported results to constant currency results
– business segments
|
||||||
|
|
Quarter ended 31 Dec 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
–
Reported
|
3,970
|
3,247
|
7,009
|
3,686
|
(1,548)
|
16,364
|
|
–
Currency translation
|
(16)
|
46
|
45
|
46
|
(21)
|
100
|
|
–
Constant currency
|
3,954
|
3,293
|
7,054
|
3,732
|
(1,569)
|
16,464
|
|
ECL
|
|
|
|
|
|
|
|
–
Reported
|
(307)
|
(101)
|
(235)
|
(235)
|
(23)
|
(901)
|
|
–
Currency translation
|
—
|
—
|
—
|
(8)
|
(1)
|
(9)
|
|
–
Constant currency
|
(307)
|
(101)
|
(235)
|
(243)
|
(24)
|
(910)
|
|
Operating expenses
|
|
|
|
|
|
|
|
–
Reported
|
(1,304)
|
(1,456)
|
(4,114)
|
(2,466)
|
10
|
(9,330)
|
|
–
Currency translation
|
5
|
(22)
|
(29)
|
(34)
|
21
|
(59)
|
|
–
Constant currency
|
(1,299)
|
(1,478)
|
(4,143)
|
(2,500)
|
31
|
(9,389)
|
|
Share of profit in associates and joint ventures
|
|
|
|
|
|
|
|
–
Reported
|
—
|
—
|
1
|
(2)
|
670
|
669
|
|
–
Currency translation
|
—
|
—
|
(1)
|
—
|
13
|
12
|
|
–
Constant currency
|
—
|
—
|
—
|
(2)
|
683
|
681
|
|
Profit
before tax
|
|
|
|
|
|
|
|
–
Reported
|
2,359
|
1,690
|
2,661
|
983
|
(891)
|
6,802
|
|
–
Currency translation
|
(11)
|
24
|
15
|
4
|
12
|
44
|
|
–
Constant currency
|
2,348
|
1,714
|
2,676
|
987
|
(879)
|
6,846
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
–
Reported
|
223,730
|
299,539
|
314,942
|
150,047
|
141
|
988,399
|
|
–
Currency translation
|
(1,417)
|
(3,551)
|
(1,649)
|
99
|
(2)
|
(6,520)
|
|
–
Constant currency
|
222,313
|
295,988
|
313,293
|
150,146
|
139
|
981,879
|
|
External
customer accounts
|
|
|
|
|
|
|
|
–
Reported
|
531,902
|
350,219
|
623,302
|
281,058
|
347
|
1,786,828
|
|
–
Currency translation
|
(3,516)
|
(4,151)
|
(5,542)
|
(1,035)
|
(5)
|
(14,249)
|
|
–
Constant currency
|
528,386
|
346,068
|
617,760
|
280,023
|
342
|
1,772,579
|
|
|
Quarter ended 31 Mar 2025
|
||||||
|
Revenue
|
|
|
|
|
|
|
|
|
–
Reported
|
3,927
|
2,898
|
7,371
|
3,511
|
(58)
|
17,649
|
|
|
–
Currency translation
|
(12)
|
209
|
280
|
182
|
11
|
670
|
|
|
–
Constant currency
|
3,915
|
3,107
|
7,651
|
3,693
|
(47)
|
18,319
|
|
|
ECL
|
|
|
|
|
|
|
|
|
–
Reported
|
(316)
|
(169)
|
(173)
|
(227)
|
9
|
(876
|
)
|
|
–
Currency translation
|
1
|
(12)
|
(8)
|
(28)
|
—
|
(47
|
)
|
|
–
Constant currency
|
(315)
|
(181)
|
(181)
|
(255)
|
9
|
(923
|
)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
–
Reported
|
(1,138)
|
(1,260)
|
(3,526)
|
(2,106)
|
(72)
|
(8,102
|
)
|
|
–
Currency translation
|
2
|
(88)
|
(148)
|
(115)
|
(2)
|
(351
|
)
|
|
–
Constant currency
|
(1,136)
|
(1,348)
|
(3,674)
|
(2,221)
|
(74)
|
(8,453
|
)
|
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
–
Reported
|
—
|
—
|
—
|
10
|
803
|
813
|
|
|
–
Currency translation
|
—
|
—
|
—
|
1
|
31
|
32
|
|
|
–
Constant currency
|
—
|
—
|
—
|
11
|
834
|
845
|
|
|
Profit
before tax
|
|
|
|
|
|
|
|
|
–
Reported
|
2,473
|
1,469
|
3,672
|
1,188
|
682
|
9,484
|
|
|
–
Currency translation
|
(9)
|
109
|
124
|
40
|
40
|
304
|
|
|
–
Constant currency
|
2,464
|
1,578
|
3,796
|
1,228
|
722
|
9,788
|
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
|
–
Reported
|
227,615
|
273,673
|
303,828
|
139,416
|
176
|
944,708
|
|
|
–
Currency translation
|
(1,278)
|
7,303
|
8,402
|
6,665
|
2
|
21,094
|
|
|
–
Constant currency
|
226,337
|
280,976
|
312,230
|
146,081
|
178
|
965,802
|
|
|
External
customer accounts
|
|
|
|
|
|
|
|
|
–
Reported
|
496,370
|
328,316
|
574,978
|
266,428
|
393
|
1,666,485
|
|
|
–
Currency translation
|
(3,211)
|
8,762
|
15,446
|
8,628
|
10
|
29,635
|
|
|
–
Constant currency
|
493,159
|
337,078
|
590,424
|
275,056
|
403
|
1,696,120
|
|
|
Reconciliation of reported risk-weighted assets to constant
currency risk-weighted assets – business
segments
|
||||||
|
|
At 31 Mar 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
Risk-weighted assets
|
|
|
|
|
|
|
|
Reported
|
133.0
|
151.2
|
418.4
|
88.5
|
92.7
|
883.8
|
|
Constant currency
|
133.0
|
151.2
|
418.4
|
88.5
|
92.7
|
883.8
|
|
|
|
|
|
|
|
|
|
|
At 31 Dec 2025
|
|||||
|
Risk-weighted assets
|
|
|
|
|
|
|
|
Reported
|
136.2
|
149.6
|
415.4
|
89.9
|
97.5
|
888.6
|
|
Currency translation
|
(0.7)
|
(1.7)
|
(2.8)
|
(0.5)
|
(0.2)
|
(5.9)
|
|
Constant currency
|
135.5
|
147.9
|
412.6
|
89.4
|
97.3
|
882.7
|
|
|
|
|
|
|
|
|
|
|
At 31
Mar 2025
|
|||||
|
Risk-weighted assets
|
|
|
|
|
|
|
|
Reported
|
142.3
|
136.8
|
400.3
|
86.5
|
87.4
|
853.3
|
|
Currency
translation
|
(0.5)
|
3.6
|
7.2
|
3.0
|
0.4
|
13.7
|
|
Constant currency
|
141.8
|
140.4
|
407.5
|
89.5
|
87.8
|
867.0
|
|
|
|
|
|
|
|
|
Strategic transactions supplementary analysis
The
following table presents the selected impacts of strategic
transactions to the Group and our business segments for
transactions that are classified as material notable items. See
page 5 for further information on material notable items and the
impact of strategic transactions.
|
Constant currency results
|
||||||||
|
|
|
|
|
of which
|
||||
|
|
1Q26
|
1Q25
|
Variance
1Q26 vs. 1Q25
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
(501)
|
86
|
(587)
|
—
|
—
|
(14)
|
(217)
|
(356)
|
|
–
distorting impact of operating results
|
—
|
178
|
(178)
|
—
|
—
|
(20)
|
(66)
|
(92)
|
|
–
notable items
|
(501)
|
(92)
|
(409)
|
—
|
—
|
6
|
(151)
|
(264)
|
|
ECL
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Operating expenses
|
(50)
|
(134)
|
84
|
—
|
—
|
73
|
20
|
(9)
|
|
–
distorting impact of operating results
|
—
|
(84)
|
84
|
—
|
—
|
59
|
21
|
4
|
|
–
notable items
|
(50)
|
(50)
|
—
|
—
|
—
|
14
|
(1)
|
(13)
|
|
Share of profit in associates and joint ventures
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Profit before tax
|
(551)
|
(48)
|
(503)
|
—
|
—
|
59
|
(197)
|
(365)
|
|
–
distorting impact of operating results
|
—
|
94
|
(94)
|
—
|
—
|
39
|
(45)
|
(88)
|
|
–
notable items
|
(551)
|
(142)
|
(409)
|
—
|
—
|
20
|
(152)
|
(277)
|
|
Profit before tax1
|
|
|
|
|
|
|
|
|
|
–
life insurance business in UK
|
(182)
|
(13)
|
(169)
|
—
|
—
|
—
|
(164)
|
(5)
|
|
–
wind-down of M&A and ECM in the UK, Europe and US
|
(6)
|
(74)
|
68
|
—
|
—
|
68
|
—
|
—
|
|
–
retained French portfolio of home and certain other
loans
|
1
|
88
|
(87)
|
—
|
—
|
—
|
—
|
(87)
|
|
–
business in Malta
|
(344)
|
—
|
(344)
|
—
|
—
|
—
|
—
|
(344
|
|
–
business in Argentina2
|
—
|
(92)
|
92
|
—
|
—
|
—
|
—
|
92
|
|
–
other strategic transactions
|
(20)
|
43
|
(63)
|
—
|
—
|
(9)
|
(33)
|
(21)
|
1
Represents the impact on profit before tax due to strategic
transactions, inclusive of the notable items impacts and the
distorting impact of operating results. This does not represent the
profit before tax of each disposed business. In the case of
wind-downs, there may be timing differences between the recognition
of operating cost impacts and operating revenue impacts. These
would arise in the event there is a timing lag between the impact
of cost actions and the resultant impact on operating
revenue.
2 1Q25
impacts relate to fair value losses on ADRs in Grupo Financiero
Galicia received as part of the sale consideration for our business
in Argentina.
Supplementary tables for Wealth
Wealth
balances
The
following table shows our Wealth balances, which include invested
assets and Wealth deposits. From 1 January 2026, we have updated
the definition of our Wealth balances to exclude Asset Management
third-party distribution. This will enhance comparability with
industry peers.
|
Wealth balances1
|
|
|
|
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$bn
|
$bn
|
$bn
|
|
Private
Bank invested assets2
|
458
|
465
|
403
|
|
Retail invested assets
|
502
|
490
|
431
|
|
Invested assets1
|
960
|
955
|
834
|
|
–
of which: The Hongkong and Shanghai Banking Corporation
Limited
|
661
|
648
|
560
|
|
Wealth deposits (Premier and Private Bank)3
|
610
|
608
|
566
|
|
–
of which: The Hongkong and Shanghai Banking Corporation
Limited
|
407
|
407
|
374
|
|
Total reported Wealth balances
|
1,570
|
1,563
|
1,400
|
|
–
of which: The Hongkong and Shanghai Banking Corporation
Limited
|
1,068
|
1,055
|
934
|
1
Invested assets are not reported on the Group’s balance
sheet, except where it is deemed that we are acting as principal
rather than agent in our role as investment manager.
2
Private Bank client balances, which comprise invested assets and
customer deposits, were $562bn (4Q25: $566bn, 1Q25:
$498bn).
3
Premier and Private Bank deposits, which include Prestige deposits
in Hang Seng Bank, form part of the total IWPB, Hong Kong and UK
businesses’ customer accounts balance on page
27.
Net new
money
Net new
money (‘NNM‘) represents our net customer inflows from
Private Bank and Retail invested assets and Wealth deposits. It
excludes foreign exchange movements and market and other movements
not relating to client inflows/outflows, which are reported within
‘foreign exchange and others’ and ‘net market
movements’, respectively. This metric excludes net customer
inflows from Asset Management third-party distribution. From 1
January 2026, we disclose NNM as our key Wealth metric, offering
greater comparability to industry peers. We no longer disclose
invested assets as a key metric.
|
Net new money
|
|||
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$bn
|
$bn
|
$bn
|
|
Opening
balance
|
1,563
|
1,537
|
1,359
|
|
Net new
money1
|
39
|
26
|
23
|
|
–
of which: net new invested assets
|
34
|
3
|
17
|
|
–
of which: change in deposits
|
5
|
23
|
6
|
|
Net
market movements
|
(21)
|
(9)
|
14
|
|
Foreign
exchange and others2
|
(11)
|
9
|
4
|
|
Closing balance
|
1,570
|
1,563
|
1,400
|
|
|
|
|
|
|
Net new
money – The Hongkong and Shanghai Banking Corporation
Limited
|
34
|
19
|
19
|
|
–
of which: net new invested assets
|
33
|
—
|
17
|
|
–
of which: change in deposits
|
1
|
19
|
2
|
1
Clients’ assets are translated at the average quarterly rates
of foreign exchange applicable to the respective quarters, with the
effects of currency translation reported separately.
2
Includes foreign exchange on Wealth deposits.
In
addition to the Wealth balances reported above, our Asset
Management business also manages assets related to third-party
distribution. Total invested assets of our Asset Management
business were $863bn (4Q25: $866bn; 1Q25: $748bn), including $291bn
related to Wealth balances (4Q25: $286bn; 1Q25: $251bn), and $572bn
related to third-party distribution (4Q25: $580bn; 1Q25: $497bn).
Invested asset balances related to The Hongkong and Shanghai
Banking Corporation Limited were $263bn (4Q25: $260bn; 1Q25:
$234bn).
Net new
invested assets, including third-party distribution, were $11bn
(4Q25: $7bn; 1Q25: $12bn). This included balances related to The
Hongkong and Shanghai Banking Corporation Limited of $8bn (4Q25:
$(5)bn; 1Q25: $4bn).
Net
market movements, foreign exchange and other movements, including
third-party distribution were $(14)bn (4Q25: $7bn; 1Q25: $5bn),
including $(5)bn for The Hongkong and Shanghai Banking Corporation
Limited (4Q25: nil; 1Q25: $7bn).
Reported and constant currency results – legal
entities
|
Reported and constant currency results – legal
entities
|
|||||||||
|
|
Quarter ended 31 Mar 2026
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and
Shanghai
Banking
Corporation
Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities1
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
3,622
|
2,536
|
10,127
|
637
|
1,249
|
973
|
678
|
(1,198)
|
18,624
|
|
ECL
|
(208)
|
(456)
|
(312)
|
(93)
|
(50)
|
(150)
|
(32)
|
—
|
(1,301)
|
|
Operating expenses
|
(1,452)
|
(1,809)
|
(3,822)
|
(325)
|
(804)
|
(542)
|
(376)
|
409
|
(8,721
|
|
Share of profit/(loss) in associates and joint
ventures
|
—
|
18
|
592
|
—
|
—
|
6
|
160
|
(2)
|
774
|
|
Profit/(loss) before tax
|
1,962
|
289
|
6,585
|
219
|
395
|
287
|
430
|
(791)
|
9,376
|
|
Loans
and advances to external customers (net)
|
311,494
|
103,572
|
479,119
|
24,420
|
55,361
|
24,068
|
3,910
|
13
|
1,001,957
|
|
External
customer accounts
|
370,603
|
313,571
|
919,570
|
38,182
|
99,951
|
28,285
|
11,575
|
24
|
1,781,761
|
1
Includes the results of entities located in Türkiye, Egypt and
Saudi Arabia (including our share of the results of SAB), which do
not consolidate into HSBC Bank Middle East Limited. These entities
had an aggregated impact on Group reported profit before tax of
$0.4bn.
|
Notable items – legal entities
|
|||||||||
|
|
Quarter ended 31 Mar 2026
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals,
acquisitions and related costs1
|
—
|
(295)
|
—
|
—
|
—
|
—
|
—
|
(206)
|
(501)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals,
acquisitions and related costs
|
—
|
(31)
|
(10)
|
—
|
(3)
|
—
|
(1)
|
(5)
|
(50)
|
|
Restructuring
and other related costs2
|
(22)
|
(6)
|
(30)
|
(2)
|
(7)
|
(14)
|
(1)
|
(46)
|
(128)
|
1 1Q26
includes $0.2bn on the recycling in foreign currency translation
reserve losses arising on completion of the sale of our UK life
insurance business, HSBC Life (UK) Limited, and $0.3bn of disposal
losses recognised upon the ‘held for sale‘
classification of HSBC Continental Europe’s shareholding in
HSBC Bank Malta plc.
2
Amounts relate to organisational simplification provision
recognised in 1Q26.
|
Reconciliation of reported results to constant currency results
– legal entities
|
||||||||
|
|
Quarter ended 31 Dec 2025
|
|||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other
trading entities1
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
–
Reported
|
3,600
|
1,239
|
8,775
|
711
|
905
|
862
|
(931)
|
16,364
|
|
–
Currency translation
|
50
|
12
|
10
|
1
|
38
|
(5)
|
(5)
|
100
|
|
–
Constant currency
|
3,650
|
1,251
|
8,785
|
712
|
943
|
857
|
(936)
|
16,464
|
|
ECL
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(101)
|
(80)
|
(427)
|
(23)
|
(202)
|
(3)
|
(33)
|
(901)
|
|
–
Currency translation
|
(2)
|
(1)
|
2
|
—
|
(8)
|
—
|
(1)
|
(9)
|
|
–
Constant currency
|
(103)
|
(81)
|
(425)
|
(23)
|
(210)
|
(3)
|
(34)
|
(910)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(1,538)
|
(2,108)
|
(4,081)
|
(369)
|
(579)
|
(500)
|
674
|
(9,330)
|
|
–
Currency translation
|
(20)
|
(9)
|
(10)
|
(1)
|
(24)
|
—
|
5
|
(59)
|
|
–
Constant currency
|
(1,558)
|
(2,117)
|
(4,091)
|
(370)
|
(603)
|
(500)
|
679
|
(9,389)
|
|
Share
of profit/(loss) in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
–
Reported
|
1
|
22
|
486
|
—
|
2
|
159
|
(1)
|
669
|
|
–
Currency translation
|
(1)
|
—
|
12
|
—
|
—
|
—
|
1
|
12
|
|
–
Constant currency
|
—
|
22
|
498
|
—
|
2
|
159
|
—
|
681
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
–
Reported
|
1,962
|
(927)
|
4,753
|
319
|
126
|
518
|
(291)
|
6,802
|
|
–
Currency translation
|
27
|
2
|
14
|
—
|
6
|
(5)
|
—
|
44
|
|
–
Constant currency
|
1,989
|
(925)
|
4,767
|
319
|
132
|
513
|
(291)
|
6,846
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
|
|
–
Reported
|
310,116
|
106,409
|
467,842
|
22,618
|
25,252
|
3,971
|
13
|
988,399
|
|
–
Currency translation
|
(3,677)
|
(1,431)
|
(1,291)
|
(5)
|
35
|
(152)
|
1
|
(6,520)
|
|
–
Constant currency
|
306,439
|
104,978
|
466,551
|
22,613
|
25,287
|
3,819
|
14
|
981,879
|
|
External
customer accounts
|
|
|
|
|
|
|
|
|
|
–
Reported
|
376,903
|
321,451
|
911,725
|
37,010
|
29,493
|
10,781
|
7
|
1,786,828
|
|
–
Currency translation
|
(4,468)
|
(4,208)
|
(4,783)
|
(20)
|
41
|
(812)
|
1
|
(14,249)
|
|
–
Constant currency
|
372,435
|
317,243
|
906,942
|
36,990
|
29,534
|
9,969
|
8
|
1,772,579
|
1
Includes the results of entities located in Türkiye, Egypt and
Saudi Arabia (including our share of the results of SAB), which do
not consolidate into HSBC Bank Middle East Limited. These entities
had an aggregated impact on Group reported profit before tax of
$0.4bn and constant currency profit before tax of
$0.4bn.
|
Notable items – legal entities (continued)
|
|||||||||
|
|
Quarter ended 31 Dec 2025
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
(1,386)
|
—
|
72
|
(1)
|
—
|
—
|
(44)
|
(1,359)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
(2)
|
(129)
|
(24)
|
(3)
|
2
|
—
|
(2)
|
1
|
(157)
|
|
Restructuring
and other related costs2
|
(54)
|
(111)
|
(101)
|
(6)
|
(12)
|
(36)
|
(4)
|
67
|
(257)
|
|
Legal
provisions
|
—
|
224
|
—
|
—
|
—
|
—
|
—
|
(235)
|
(11)
|
1
Includes recycling of cumulative fair value losses of $1.5bn
relating to the French retained portfolio of home and certain other
loans following the completion of its sale to a consortium
comprising Rothesay Life plc and CCF.
2
Amounts relate to organisational simplification provision
recognised in 4Q25.
|
Reconciliation of reported results to constant currency results
– legal entities (continued)
|
||||||||||
|
|
Quarter ended 31 Mar 2025
|
|||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other
trading entities1
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
3,211
|
2,720
|
9,382
|
619
|
1,171
|
823
|
593
|
(870)
|
17,649
|
|
|
–
Currency translation
|
225
|
237
|
69
|
—
|
—
|
134
|
—
|
5
|
670
|
|
|
–
Constant currency
|
3,436
|
2,957
|
9,451
|
619
|
1,171
|
957
|
593
|
(865)
|
18,319
|
|
|
ECL
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(187)
|
(39)
|
(353)
|
(26)
|
(86)
|
(180)
|
(5)
|
—
|
(876
|
)
|
|
–
Currency translation
|
(14)
|
(5)
|
—
|
—
|
—
|
(30)
|
—
|
2
|
(47
|
)
|
|
–
Constant currency
|
(201)
|
(44)
|
(353)
|
(26)
|
(86)
|
(210)
|
(5)
|
2
|
(923
|
)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
(1,313)
|
(1,665)
|
(3,538)
|
(310)
|
(819)
|
(459)
|
(317)
|
319
|
(8,102
|
)
|
|
–
Currency translation
|
(91)
|
(144)
|
(38)
|
—
|
(1)
|
(74)
|
(1)
|
(2
|
(351
|
)
|
|
–
Constant currency
|
(1,404)
|
(1,809)
|
(3,576)
|
(310)
|
(820)
|
(533)
|
(318)
|
317
|
(8,453
|
)
|
|
Share of profit/(loss) in associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
—
|
(3)
|
635
|
—
|
—
|
4
|
177
|
—
|
813
|
|
|
–
Currency translation
|
—
|
—
|
32
|
—
|
—
|
—
|
—
|
—
|
32
|
|
|
–
Constant currency
|
—
|
(3)
|
667
|
—
|
—
|
4
|
177
|
—
|
845
|
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
1,711
|
1,013
|
6,126
|
283
|
266
|
188
|
448
|
(551)
|
9,484
|
|
|
–
Currency translation
|
120
|
88
|
63
|
—
|
(1)
|
30
|
(1)
|
5
|
304
|
|
|
–
Constant currency
|
1,831
|
1,101
|
6,189
|
283
|
265
|
218
|
447
|
(546)
|
9,788
|
|
|
Loans
and advances to external customers (net)
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
282,969
|
101,516
|
453,681
|
21,085
|
56,648
|
23,843
|
4,967
|
(1)
|
944,708
|
|
|
–
Currency translation
|
7,552
|
5,405
|
5,064
|
1
|
—
|
3,257
|
(186)
|
1
|
21,094
|
|
|
–
Constant currency
|
290,521
|
106,921
|
458,745
|
21,086
|
56,648
|
27,100
|
4,781
|
—
|
965,802
|
|
|
External
customer accounts
|
|
|
|
|
|
|
|
|
|
|
|
–
Reported
|
349,850
|
307,594
|
839,433
|
34,572
|
97,533
|
26,701
|
10,760
|
42
|
1,666,485
|
|
|
–
Currency translation
|
9,337
|
12,878
|
4,498
|
7
|
—
|
3,647
|
(732)
|
—
|
29,635
|
|
|
–
Constant currency
|
359,187
|
320,472
|
843,931
|
34,579
|
97,533
|
30,348
|
10,028
|
42
|
1,696,120
|
|
1
Includes the results of entities located in Türkiye, Egypt and
Saudi Arabia (including our share of the results of SAB), which do
not consolidate into HSBC Bank Middle East Limited. These entities
had an aggregated impact on Group reported profit before tax of
$0.4bn and constant currency profit before tax of
$0.4bn.
|
Notable items – legal entities (continued)
|
|||||||||
|
|
Quarter ended 31 Mar 2025
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
—
|
(14)
|
—
|
—
|
—
|
—
|
—
|
(77)
|
(91)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
—
|
(12)
|
(8)
|
(5)
|
(10)
|
—
|
—
|
(15)
|
(50)
|
|
Restructuring
and other related costs2
|
(9)
|
(8)
|
(19)
|
(2)
|
(6)
|
(1)
|
(20)
|
(76)
|
(141)
|
1
Includes $0.1bn of fair value losses on ADRs in Grupo Financiero
Galicia received as part of the sale consideration for our business
in Argentina.
2
Amounts relate to organisational simplification provision
recognised in 1Q25.
Alternative
performance measures
The
following tables provide the calculation, definition and
reconciliation of alternative performance measures to the closest
reported performance measure. For further details and an
explanation of their basis of preparation, including constant
currency, notable items and material notable items, and the impact
of strategic transactions and hyperinflationary accounting, see
page 5.
|
Alternative performance measure
|
|
|
Definition
|
|
||
|
Reported
revenue excluding notable items
|
|
|
Reported
revenue after excluding notable items reported under
revenue
|
|
||
|
Reported
profit before tax excluding notable items
|
|
|
Reported
profit before tax after excluding notable items reported under
revenue less notable
items
reported under operating expenses
|
|
||
|
Constant
currency revenue excluding notable items
|
|
|
Reported
revenue excluding notable items and the impact of foreign exchange
translation
|
|
||
|
Constant
currency profit before tax excluding notable items
|
|
|
Reported
profit before tax excluding notable items and the impact of foreign
exchange translation
|
|
||
|
Constant
currency revenue excluding notable items and strategic
transactions
|
|
|
Reported
revenue excluding notable items, strategic transactions and the
impact of foreign
exchange
translation
|
|
||
|
Constant
currency profit before tax excluding notable items and strategic
transactions
|
|
|
Reported
profit before tax excluding notable items, strategic transactions
and the impact of
foreign
exchange translation
|
|
||
|
Return on average ordinary shareholders’ equity
(‘RoE’)
|
|
|
Profit attributable to the ordinary shareholders
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Average
ordinary shareholders’ equity
|
|
|||
|
Return
on average tangible equity (‘RoTE‘)
|
|
|
Profit
attributable to the ordinary shareholders, excluding
impairment
of
goodwill and other intangible assets
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Average ordinary shareholders’ equity adjusted for goodwill
and intangibles
|
|
|||
|
Return
on average tangible equity (‘RoTE‘) excluding notable
items
|
|
|
Profit
attributable to the ordinary shareholders, excluding impairment of
goodwill
and
other intangible assets and notable items
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Average
ordinary shareholders’ equity adjusted for
goodwill
and
intangibles
|
|
|||
|
Net asset value per ordinary share
|
|
|
Total
ordinary shareholders’ equity1
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Basic
number of ordinary shares in issue after deducting own shares
held
|
|
|||
|
Tangible net asset value per ordinary share
|
|
|
Tangible
ordinary shareholders’ equity2
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Basic
number of ordinary shares in issue after deducting own shares
held
|
|
|||
|
Banking
net interest income
|
|
|
Banking
net interest income adjusts our reported NII, primarily for the
impact of funding trading
and
fair value activities reported in interest expense and to exclude
third party insurance NII3
|
|
||
|
Expected
credit losses and other credit impairment charges as a % of average
gross loans and advances to customers
|
|
|
Annualised
constant currency ECL
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Constant
currency average gross loans and advances to customers
|
|
|||
|
Expected
credit losses and other credit impairment charges as a % of average
gross loans and advances to customers, including held for
sale
|
|
|
Annualised
constant currency ECL
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Constant
currency average gross loans and advances to
customers,
including
held for sale
|
|
|||
|
Target basis operating expenses
|
|
|
Reported
operating expenses excluding notable items, foreign
exchange
translation
and other excluded items
|
|
||
|
Basic earnings per share excluding material notable items and
related impacts
|
|
|
Profit
attributable to ordinary shareholders excluding material
notable
items
and related impacts
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares outstanding after
deducting
own
shares held
|
|
|||
1 Total
ordinary shareholders’ equity is total shareholders‘
equity less non-cumulative preference shares and capital
securities.
2
Tangible ordinary shareholders’ equity is total ordinary
shareholders’ equity excluding goodwill and other intangible
assets (net of deferred tax).
3 For
details on the calculation of banking NII, see page
11.
|
Constant currency revenue and profit before tax excluding notable
items and strategic transactions
|
|
|
||||||||||||||||||
|
|
Quarter
ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
Reported
|
18,624
|
16,364
|
17,649
|
|
Notable
item
|
501
|
1,359
|
91
|
|
Reported
revenue excluding notable items
|
19,125
|
17,723
|
17,740
|
|
Currency
translation1
|
—
|
108
|
671
|
|
Constant
currency revenue excluding notable items
|
19,125
|
17,831
|
18,411
|
|
Constant
currency impact of strategic transactions (distorting impact of
operating results between periods)2
|
—
|
N/A
|
(178)
|
|
Constant currency revenue excluding notable items and strategic
transactions
|
19,125
|
N/A
|
18,233
|
|
Profit before tax
|
|
|
|
|
Reported
|
9,376
|
6,802
|
9,484
|
|
Notable
items
|
679
|
1,784
|
282
|
|
Reported
profit before tax excluding notable items
|
10,055
|
8,586
|
9,766
|
|
Currency
translation1
|
—
|
44
|
312
|
|
Constant
currency profit before tax excluding notable items
|
10,055
|
8,630
|
10,078
|
|
Constant
currency impact of strategic transactions (distorting impact of
operating results between periods)2
|
—
|
N/A
|
(94)
|
|
Constant currency profit before tax excluding notable items and
strategic transactions
|
10,055
|
N/A
|
9,984
|
1
Currency translation on the reported balance excluding currency
translation on notable items.
2 For
more details of strategic transactions, see ‘Strategic
transactions supplementary analysis‘ on page 25.
|
Return on average ordinary shareholders‘ equity, return on
average tangible equity and return on average tangible equity
excluding notable items
|
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Profit after tax
|
|
|
|
|
Profit
attributable to the ordinary shareholders of the parent
company
|
6,938
|
4,719
|
6,932
|
|
Impairment of goodwill and other intangible assets (net of
tax)
|
30
|
80
|
—
|
|
Profit attributable to the ordinary shareholders, excluding
goodwill and other intangible assets impairment
|
6,968
|
4,799
|
6,932
|
|
Impact
of notable items1
|
601
|
1,685
|
216
|
|
Profit attributable to the ordinary shareholders, excluding
goodwill, other intangible assets impairment and notable
items
|
7,569
|
6,484
|
7,148
|
|
Equity
|
|
|
|
|
Average
total shareholders‘ equity
|
197,522
|
194,828
|
187,892
|
|
Effect
of average preference shares and other equity
instruments
|
(21,463)
|
(20,716)
|
(18,894)
|
|
Average ordinary shareholders’ equity
|
176,059
|
174,112
|
168,998
|
|
Effect of goodwill and other intangibles (net of deferred
tax)
|
(12,315)
|
(12,309)
|
(11,650)
|
|
Average tangible equity
|
163,744
|
161,803
|
157,348
|
|
Ratio
|
%
|
%
|
%
|
|
Return on average ordinary shareholders’ equity
(annualised)
|
16.0
|
10.8
|
16.6
|
|
Return on average tangible equity (annualised)
|
17.3
|
11.8
|
17.9
|
|
Return
on average tangible equity excluding notable items
(annualised)
|
18.7
|
15.9
|
18.4
|
1 For
details of notable items, see page 22.
To
better align our RoTE excluding notable items measure with market
practice, from our 2025 full-year results we no longer adjust the
‘average tangible equity‘ for the post-tax impact of
notable items in each period. Comparatives have been
re-presented.
|
Return on average tangible equity by business segment
|
||||||
|
|
Quarter ended 31 Mar 2026
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Profit before tax
|
2,589
|
1,645
|
3,337
|
1,231
|
574
|
9,376
|
|
Tax expense
|
(430)
|
(469)
|
(646)
|
(254)
|
(183)
|
(1,982
|
|
Profit after tax
|
2,159
|
1,176
|
2,691
|
977
|
391
|
7,394
|
|
Less attributable to: preference shareholders, other equity
holders, non-controlling interests
|
(76)
|
(47)
|
(213)
|
(32)
|
(88)
|
(456
|
|
Profit attributable to ordinary shareholders of the parent
company
|
2,083
|
1,129
|
2,478
|
945
|
303
|
6,938
|
|
Other adjustments
|
52
|
80
|
(45)
|
(8)
|
(49)
|
30
|
|
Profit attributable to ordinary shareholders
|
2,135
|
1,209
|
2,433
|
937
|
254
|
6,968
|
|
Impact
of notable items
|
3
|
6
|
19
|
191
|
382
|
601
|
|
Profit attributable to ordinary shareholders excluding notable
items
|
2,138
|
1,215
|
2,452
|
1,128
|
636
|
7,569
|
|
Average tangible shareholders’ equity
|
19,383
|
22,772
|
57,922
|
16,716
|
46,951
|
163,744
|
|
RoTE (%) (annualised)
|
44.7
|
21.5
|
17.0
|
22.7
|
2.2
|
17.3
|
|
RoTE (%), excluding notable items (annualised)
|
44.7
|
21.6
|
17.2
|
27.4
|
5.5
|
18.7
|
|
|
||||||
|
|
Quarter ended 31 Mar 2025
|
|||||
|
Profit before tax
|
2,473
|
1,469
|
3,672
|
1,188
|
682
|
9,484
|
|
Tax expense
|
(466)
|
(419)
|
(797)
|
(236)
|
4
|
(1,914)
|
|
Profit after tax
|
2,007
|
1,050
|
2,875
|
952
|
686
|
7,570
|
|
Less attributable to: preference shareholders, other equity
holders, non-controlling interests
|
(271)
|
(51)
|
(182)
|
(64)
|
(70)
|
(638)
|
|
Profit attributable to ordinary shareholders of the parent
company
|
1,736
|
999
|
2,693
|
888
|
616
|
6,932
|
|
Other adjustments
|
68
|
59
|
(53)
|
(13)
|
(61)
|
—
|
|
Profit attributable to ordinary shareholders
|
1,804
|
1,058
|
2,639
|
876
|
555
|
6,932
|
|
Impact of notable items
|
6
|
3
|
58
|
31
|
118
|
216
|
|
Profit
attributable to ordinary shareholders excluding notable
items
|
1,810
|
1,061
|
2,697
|
907
|
673
|
7,148
|
|
Average tangible shareholders’ equity
|
19,866
|
19,616
|
55,396
|
18,511
|
43,959
|
157,348
|
|
RoTE (%) (annualised)
|
36.8
|
21.9
|
19.3
|
19.2
|
5.1
|
17.9
|
|
RoTE
(%), excluding notable items (annualised)
|
37.0
|
21.9
|
19.7
|
19.9
|
6.2
|
18.4
|
|
Net asset value and tangible net asset value per ordinary
share
|
||||||
|
|
At
|
|||||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|||
|
|
$m
|
$m
|
$m
|
|||
|
Total shareholders’ equity
|
196,819
|
198,225
|
190,810
|
|||
|
Preference shares and other equity instruments
|
(22,211)
|
(20,716)
|
(18,719)
|
|||
|
Total ordinary shareholders’ equity
|
174,608
|
177,509
|
172,091
|
|||
|
Goodwill and intangible assets (net of deferred tax)
|
(12,273)
|
(12,356)
|
(11,693)
|
|||
|
Tangible ordinary shareholders’ equity
|
162,335
|
165,153
|
160,398
|
|||
|
Basic
number of $0.50 ordinary shares outstanding, after deducting own
shares held (millions)
|
17,164
|
17,140
|
17,668
|
|||
|
Value per share
|
$
|
$
|
$
|
|||
|
Net asset value per ordinary share
|
10.17
|
10.36
|
9.74
|
|||
|
Tangible net asset value per ordinary share
|
9.46
|
9.64
|
9.08
|
|||
|
|
|
|
|
|||
|
ECL as a % of average gross loans and advances to customers, and
ECL as a % of average gross loans and advances to customers,
including held for sale
|
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Expected
credit losses and other credit impairment charges
(‘ECL‘)
|
(1,301)
|
(901)
|
(876)
|
|
Currency translation
|
—
|
(9)
|
(47)
|
|
Constant currenc
|
(1,301)
|
(910)
|
(923)
|
|
Average gross loans and advances to customers
|
1,006,193
|
996,242
|
947,588
|
|
Currency translation
|
(3,301)
|
(6,483)
|
27,685
|
|
Constant currency
|
1,002,892
|
989,759
|
975,273
|
|
Average gross loans and advances to customers, including held for
sale
|
1,009,774
|
998,816
|
948,700
|
|
Currency translati
|
(3,336)
|
(6,534)
|
27,781
|
|
Constant curr
|
1,006,438
|
992,282
|
976,481
|
|
|
|
|
|
|
Ratios
|
%
|
%
|
%
|
|
Expected
credit losses and other credit impairment charges (annualised) as a
% of average gross loans and advances to customers (%)
|
0.53
|
0.36
|
0.38
|
|
Expected
credit losses and other credit impairment charges (annualised) as a
% of average gross loans and advances to customers, including held
for sale (%)
|
0.52
|
0.36
|
0.38
|
|
Target basis operating expenses
|
|
|
Quarter ended
|
||
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Reported operating expenses
|
8,721
|
9,330
|
8,102
|
|
Notable items
|
(178)
|
(425)
|
(191)
|
|
–
disposals, wind-downs, acquisitions and related costs
|
(50)
|
(157)
|
(50)
|
|
–
restructuring and other related costs1
|
(128)
|
(257)
|
(141)
|
|
–
legal provisions
|
—
|
(11)
|
—
|
|
Currency
translation2
|
—
|
67
|
344
|
|
Excluding
the impact of retranslating prior period costs of hyperinflationary
economies at constant currency foreign exchange rate
|
—
|
2
|
9
|
|
Target basis operating expenses
|
8,543
|
8,974
|
8,264
|
1
Amounts include restructuring provisions related to the
organisational simplification.
2
Currency translation on reported operating expenses, excluding
currency translation on notable items.
|
|
|
Basic earnings per share excluding material notable items
andrelated
impacts
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
31 Mar 2026
|
31 Dec 2025
|
31 Mar 2025
|
|
|
$m
|
$m
|
$m
|
|
Profit attributable to shareholders of company
|
7,345
|
4,944
|
7,324
|
|
Coupon
payable on capital securities classified as equity
|
(407)
|
(225)
|
(392)
|
|
Profit attributable to ordinary shareholders of
company
|
6,938
|
4,719
|
6,932
|
|
Legal
provisions
|
—
|
10
|
—
|
|
Impact
of disposals, wind-downs, acquisitions and related
costs1
|
535
|
1,570
|
68
|
|
Profit attributable to ordinary shareholders of company excluding
material notable items and related impacts
|
7,473
|
6,299
|
7,000
|
|
|
|
|
|
|
Number of shares
|
|
|
|
|
Weighted
average basic number of ordinary shares after deducting own shares
held (millions)
|
17,129
|
17,136
|
17,769
|
|
Basic
earnings per share ($)
|
0.41
|
0.28
|
0.39
|
|
Basic
earnings per share excluding material notable items and related
impacts ($)
|
0.44
|
0.37
|
0.39
|
1 1Q26
includes $0.2bn on the recycling of foreign currency translation
reserve losses arising on completion of the sale of our UK life
insurance business, HSBC Life (UK) Limited, and $0.3bn of disposal
losses recognised upon the ‘held for sale‘
classification of HSBC Continental Europe’s shareholding in
HSBC Bank Malta plc. 4Q25 includes recycling of cumulative fair
value losses of $1.5bn relating to the French retained portfolio of
home and certain other loans following the completion of its sale.
1Q25 includes $0.1bn of fair value losses on ADRs in Grupo
Financiero Galicia received as part of the sale consideration for
our business in Argentina.
Risk
Managing risk
We
maintain a proactive approach to managing our exposure to economic,
financial and geopolitical risks, supported by continuous
monitoring and review. Developments in these areas have
historically affected, and may in the future materially affect,
HSBC’s customers, operations and financial risk
profile.
The
conflict in the Middle East is a source of uncertainty, and may
adversely impact HSBC and our customers, including through
increased market volatility, higher oil and gas prices and
disruptions to supply chains. The duration and direction of the
conflict is likely to determine the extent of its economic and
financial impact.
Before
the onset of the conflict in the Middle East on 28 February 2026,
the global economy showed continued resilience to unpredictable US
trade policies and heightened geopolitical tensions. The conflict
and the resultant energy supply shock have increased uncertainty
around global GDP growth. The surge in oil and gas prices raises
the risk of higher inflation and lower GDP growth. For some
countries, particularly those in the Middle East region, where
travel, logistics and other sectors have also been affected, the
impact is already significant. Evidence of broader supply chain
disruptions is emerging and there could be long-lasting
implications for the direction of trade, and for energy, military
and economic security. We maintain close oversight of the
developments, with a focus on potential impacts on our Gulf
operations, as well as our customers and suppliers.
Trade
and tariff policies also remain a source of uncertainty for
businesses and consumers. Changes to tariff rates, including the
application of sector-specific levies, may deter capital investment
and consumer spending, disrupt supply chains and reduce global
trade growth. The reconfiguration of trade and supply routes may
offer new opportunities for investment and growth, but these
developments could also adversely affect the Group and our
customers who operate in some of the most affected
markets.
We
remain subject to interest rate risk, which can affect net interest
income, the fair value of our assets and liabilities, and overall
financial performance. Interest rate volatility has increased as
higher oil and gas prices have raised inflation expectations and
concern that government spending may rise to help reduce the
financial impact on households. Prior to the conflict in the Middle
East, markets had expected both the US Federal Reserve and the Bank
of England (‘BoE’) to lower interest rates during 2026,
but renewed inflation risk has raised uncertainty around their
future path. In the year to date, the US Federal Reserve has left
interest rates unchanged at 3.5%–3.75% and assessed that
inflation risks have increased. The BoE has also left the policy
rate unchanged at 3.75%, judging that inflation pressures have
increased, but assessing that the impact on the economy would
depend on the scale and duration of the conflict in the Middle
East. Higher interest rates may reduce loan demand across key
consumer and business segments, may weaken credit quality and may
weigh on real estate and other asset prices. By contrast, lower
interest rates could pressure net interest margins and adversely
affect profitability.
Market
volatility has increased due to rising geopolitical risks, higher
energy prices and changing interest rate expectations. The duration
and severity of market disruption remain uncertain and could change
significantly if geopolitical outcomes differ materially from
market expectations.
Our
risk profile may be influenced by fiscal policies, public deficits
and levels of sovereign indebtedness. In many of our major markets,
government debt levels are rising due to higher social welfare
commitments and increased expenditure on defence, energy security
and climate transition. Higher long-term interest rates across
major economies could adversely impact the fiscal capacity and debt
sustainability of highly-indebted sovereigns. The rise in funding
costs in our major markets could reduce the potential for GDP
growth by increasing the cost of borrowing, while also creating
refinancing risks for our customers and
counterparties.
Exchange
rate volatility may also affect our risk exposure through
mark-to-market changes in trading positions and the translation
effects of currency movements.
Investment
in the artificial intelligence (‘AI’) and technology
sectors and the development of those technologies is being
monitored. While AI may deliver improvements to productivity, there
remains a risk that the expected gains will fail to materialise and
that a disruptive correction to the valuations of AI and technology
companies will follow. Other risks relating to AI include the
potential disruption of established business models and an increase
in unemployment as a result of improvements in technology. These
risks could affect HSBC’s risk profile and earnings by
impairing the creditworthiness of borrowers, increasing the
financial vulnerability of customers and decreasing the value of
collateral and other claims.
We
continue to monitor the Russia-Ukraine war and any indication of
other potential military action or conflict elsewhere, given that
these are key sources of uncertainty that may impact HSBC and our
customers, including through increased market volatility and supply
chain disruptions. Heightened strategic competition between the US
and China, including cross-border investment restrictions, is also
affecting the configuration of global supply chains, which may in
turn affect the Group’s operations.
Sanctions
and restrictions on trade and investment are continually evolving
in response to geopolitical events and may adversely affect the
Group, its customers and the markets in which the Group operates.
These factors may result in increased legal, regulatory,
reputational and market risks, and a more complex operating
environment.
In Hong
Kong, we continue to observe signs of a recovery in the residential
property sector. Sentiment in the retail property sector also
continues to improve, driven by positive retail sales growth,
although the office property sector is still facing pressure from
oversupply. Market liquidity remains tight overall, particularly
for mid-sized and sub-investment grade corporates. The conflict in
the Middle East will likely create negative sentiment and could
result in a softening of demand as a result of inflationary
pressures and increased uncertainty over the trajectory of interest
rates. In mainland China, the property market remains weak, with
government stimulus yet to trigger a material improvement in buyer
sentiment.
In the
first quarter of 2026, for the reported ECL allowance, an
additional scenario, the Downside 1, was introduced to help address
the risks associated with the conflict in the Middle East.
Management adjustments to ECL were applied to reflect sector or
portfolio risks that are not fully captured by our models,
including those in relation to the conflict in the Middle East. We
continue to monitor, and seek to manage, the potential implications
of all the above developments on our customers and our
business.
At
31 March 2026, our CET1 ratio decreased to 14.0% from 14.9% at
31 December 2025, and our liquidity coverage ratio
(‘LCR’) was 135%, down from 137% at 31 December
2025.
➢
For further details
of our Central and other economic scenarios, see page
38.
➢
For further details
on our CET1 ratio, see ‘Capital risk‘ on page
46.
Credit risk
Summary
of credit risk
At 31
March 2026, gross loans and advances to banks and customers of
$1,113bn increased by $6.0bn on a reported basis compared with
31 December 2025. Gross loans and advances to customers
increased by $14.2bn and gross loans and advances to banks
decreased by $8.2bn. This included total adverse foreign exchange
movements of $7.5bn.
On a
constant currency basis, the increase of $20.8bn in loans and
advances to customers was driven by higher balances in our CIB
business (up $12.6bn), our UK business segment (up $4.4bn) and in
our Hong Kong business segment (up $2.6bn).
The
increase in CIB was driven by higher balances in our entities in
Asia, the US and the Middle East across several
sectors.
In our
UK business, the increase was primarily driven by higher corporate
and commercial exposures in addition to mortgage
growth.
The
increase in our Hong Kong business was primarily driven by higher
balances across other personal lending and corporate and commercial
exposures.
At 31
March 2026, the allowance for ECL of $12.0bn increased by $0.8bn
compared with 31 December 2025, including write-offs of $0.7bn and
favourable foreign exchange movements of $0.1bn. The $12.0bn
allowance comprised $11.5bn in respect of assets held at amortised
cost and $0.5bn in respect of loan commitments and financial
guarantees.
On a
constant currency basis, the allowance for ECL in relation to loans
and advances to customers increased by $0.7bn. This was
attributable to:
-
a $0.7bn increase
in wholesale loans and advances to customers, which included a
$0.6bn increase in stage 3 and a $0.1bn increase in stages 1 and 2;
and
-
a broadly unchanged
allowance for ECL personal loans and advances to
customers.
The ECL
charge for the first three months of 2026 was $1.3bn (1Q25:
$0.9bn), inclusive of recoveries. It comprised: $0.7bn in respect
of CIB; $0.2bn in respect of IWPB; $0.2bn in respect of the Hong
Kong business segment; and $0.2bn in respect of the UK business
segment.
➢
For further details
on ECL charges in each of our business segments, see pages 16 and
36.
The
charge in 1Q26 primarily reflected a $0.4bn fraud-related,
secondary, securitisation exposure with a financial sponsor in the
UK in our CIB business, as well as an increase in allowances of
$0.3bn to reflect heightened uncertainty and a deterioration in the
forward economic outlook due to the onset of the conflict in the
Middle East on 28 February 2026. Net ECL charges in the Hong Kong
CRE and mainland China CRE sectors were immaterial in
1Q26.
|
Summary
of financial instruments to which the impairment requirements in
IFRS 9 are applied - by business segment at 31 March
2026
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Gross carrying/nominal amount
|
Allowance for ECL1
|
|||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Loans and advances to customers at amortised cost
|
228,726
|
302,409
|
329,049
|
152,930
|
182
|
1,013,296
|
(4,028)
|
(1,994)
|
(3,717)
|
(1,564)
|
(36)
|
(11,339)
|
|
Loans and advances to banks at amortised cost
|
9,151
|
6,668
|
65,944
|
16,854
|
1,692
|
100,309
|
(1)
|
—
|
(7)
|
(2)
|
(2)
|
(12)
|
|
Other financial assets measured at amortised cost
|
51,985
|
95,689
|
645,100
|
58,705
|
67,599
|
919,078
|
(12)
|
(8)
|
(91)
|
(42)
|
(4)
|
(157)
|
|
–
cash and balances at central banks
|
4,444
|
41,082
|
154,375
|
13,461
|
1,345
|
214,707
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
Hong Kong Government certificates of indebtedness
|
—
|
—
|
—
|
—
|
44,727
|
44,727
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
reverse repurchase agreements – non-trading
|
3,328
|
25,661
|
279,775
|
5,481
|
619
|
314,864
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
financial investments
|
38,942
|
25,666
|
81,786
|
28,484
|
16,741
|
191,619
|
(2)
|
(1)
|
(3)
|
(4)
|
—
|
(10)
|
|
–
assets held for sale2
|
—
|
14
|
4,093
|
4,776
|
21
|
8,904
|
—
|
—
|
(31)
|
(28)
|
—
|
(59)
|
|
–
other assets3
|
5,271
|
3,266
|
125,071
|
6,503
|
4,146
|
144,257
|
(10)
|
(7)
|
(57)
|
(10)
|
(4)
|
(88)
|
|
Total on-balance sheet
|
289,862
|
404,766
|
1,040,093
|
228,489
|
69,473
|
2,032,683
|
(4,041)
|
(2,002)
|
(3,815)
|
(1,608)
|
(42)
|
(11,508)
|
|
Loan and other credit-related commitments
|
106,665
|
102,707
|
406,593
|
125,155
|
1,207
|
742,327
|
(25)
|
(109)
|
(238)
|
(4)
|
—
|
(376)
|
|
Financial guarantees
|
622
|
1,052
|
14,925
|
1,730
|
—
|
18,329
|
(1)
|
(19)
|
(57)
|
—
|
—
|
(77)
|
|
Total off-balance sheet4
|
107,287
|
103,759
|
421,518
|
126,885
|
1,207
|
760,656
|
(26)
|
(128)
|
(295)
|
(4)
|
—
|
(453)
|
|
At 31 Mar 2026
|
397,149
|
508,525
|
1,461,611
|
355,374
|
70,680
|
2,793,339
|
(4,067)
|
(2,130)
|
(4,110)
|
(1,612)
|
(42)
|
(11,961)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value
|
Memorandum allowance for ECL5
|
||||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
|
Debt instruments measured at fair value through other comprehensive
income (‘FVOCI‘)
|
135,751
|
27,761
|
175,329
|
49,254
|
1,220
|
389,315
|
(2)
|
(1)
|
(20)
|
(8)
|
—
|
(31)
|
||
|
Summary of financial instruments to which the impairment
requirements in IFRS 9 are applied – by business segment at
31 December 2025
|
||||||||||||
|
|
Gross carrying/nominal amount
|
Allowance
for ECL1
|
||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Loans and advances to customers at amortised cost
|
227,608
|
301,537
|
318,113
|
151,657
|
176
|
999,091
|
(3,878)
|
(1,998)
|
(3,170)
|
(1,610)
|
(36)
|
(10,692)
|
|
Loans and advances to banks at amortised cost
|
11,696
|
7,302
|
67,909
|
16,630
|
4,932
|
108,469
|
—
|
—
|
(4)
|
(2)
|
(1)
|
(7)
|
|
Other financial assets measured at amortised cost
|
57,228
|
101,338
|
605,976
|
59,114
|
66,670
|
890,326
|
(25)
|
(10)
|
(68)
|
(25)
|
(1)
|
(129)
|
|
–
cash and balances at central banks
|
6,531
|
49,542
|
167,889
|
18,174
|
723
|
242,859
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
Hong Kong Government certificates of indebtedness
|
—
|
—
|
—
|
—
|
44,063
|
44,063
|
—
|
—
|
—
|
—
|
—
|
—
|
|
–
reverse repurchase agreements – non-trading
|
5,931
|
24,847
|
259,919
|
6,354
|
1,341
|
298,392
|
—
|
—
|
—
|
—
|
—
|
—
|
|
– financial investments
|
38,438
|
23,602
|
74,491
|
28,344
|
17,226
|
182,101
|
(2)
|
(1)
|
(4)
|
(5)
|
—
|
(12)
|
|
–
assets held for sale2
|
—
|
14
|
3,229
|
864
|
8
|
4,115
|
—
|
—
|
(18)
|
(9)
|
—
|
(27)
|
|
–
other assets3
|
6,328
|
3,333
|
100,448
|
5,378
|
3,309
|
118,796
|
(23)
|
(9)
|
(46)
|
(11)
|
(1)
|
(90)
|
|
Total
on-balance sheet
|
296,532
|
410,177
|
991,998
|
227,401
|
71,778
|
1,997,886
|
(3,903)
|
(2,008)
|
(3,242)
|
(1,637)
|
(38)
|
(10,828)
|
|
Loan and other credit-related commitments
|
106,246
|
100,162
|
358,554
|
125,138
|
692
|
690,792
|
(26)
|
(91)
|
(195)
|
(3)
|
—
|
(315)
|
|
Financial guarantees
|
588
|
1,061
|
14,118
|
1,709
|
—
|
17,476
|
(1)
|
(16)
|
(33)
|
(1)
|
—
|
(51)
|
|
Total
off-balance sheet4
|
106,834
|
101,223
|
372,672
|
126,847
|
692
|
708,268
|
(27)
|
(107)
|
(228)
|
(4)
|
—
|
(366)
|
|
At 31 Dec 2025
|
403,366
|
511,400
|
1,364,670
|
354,248
|
72,470
|
2,706,154
|
(3,930)
|
(2,115)
|
(3,470)
|
(1,641)
|
(38)
|
(11,194)
|
|
|
Fair value
|
Memorandum
allowance for ECL5
|
||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Debt
instruments measured at FVOCI
|
130,998
|
27,795
|
174,611
|
48,939
|
1,225
|
383,568
|
(1)
|
—
|
(20)
|
(9)
|
—
|
(30)
|
1 The
total ECL is recognised in the loss allowance for the financial
asset unless the total ECL exceeds the gross carrying amount of the
financial asset, in which case the ECL is recognised as a
provision.
2 At 31
March 2026, the gross carrying amount comprised $6.6bn of loans and
advances to customers and banks (31 December 2025: $3.6bn) and
$2.3bn of other financial assets at amortised cost (31 December
2025: $0.5bn). This included the planned sales of our business in
Malta ($4.1bn, 31 December 2025: Nil), our custody business in
Germany ($0.3bn, 31 December 2025: $0.3bn), our business in Uruguay
($1.4bn, 31 December 2025: $1.4bn) and completion of the sale of
our business in South
Africa (Nil, 31 December 2025: $0.4bn). The corresponding allowance
for ECL comprised $59m of loans and advances to customers
and banks (31 December 2025: $27m).
3
Includes only those financial instruments that are subject to the
impairment requirements of IFRS 9. ‘Other assets’ as
presented within the summary consolidated balance sheet on page 12
comprises both financial and non-financial assets, including cash
collateral and settlement accounts.
4
Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
5 Debt
instruments measured at FVOCI continue to be measured at fair value
with the allowance for ECL as a memorandum item. Change in ECL is
recognised in ‘Change in expected credit losses and other
credit impairment charges’ in the income
statement.
|
Change in expected credit losses and other credit impairment
charges by business segment
|
||||||||||||||||||||||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
||||||||||||||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||||||||||
|
Quarter ended 31 Mar 2026
|
(208)
|
(203)
|
(679)
|
(210)
|
(1)
|
(1,301)
|
||||||||||||||||||
|
Quarter
ended 31 Dec 2025
|
(307)
|
(101)
|
(235)
|
(235)
|
(23)
|
(901)
|
||||||||||||||||||
|
Quarter ended 31 Mar 2025
|
(316)
|
(169)
|
(173)
|
(227)
|
9
|
(876)
|
||||||||||||||||||
|
Summary of credit risk (excluding debt instruments measured at
FVOCI) by stage distribution and ECL coverage at 31 March
2026
|
|||||||||||||||
|
|
Gross carrying/nominal amount1
|
Allowance for ECL
|
ECL coverage %
|
||||||||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
%
|
%
|
%
|
%
|
%
|
|
Loans
and advances to customers at amortised cost3
|
900,958
|
87,651
|
24,343
|
344
|
1,013,296
|
(1,258)
|
(2,320)
|
(7,690)
|
(71)
|
(11,339)
|
0.1
|
2.6
|
31.6
|
20.6
|
1.1
|
|
Loans and advances to banks at amortised cost
|
99,240
|
1,068
|
1
|
—
|
100,309
|
(9)
|
(2)
|
(1)
|
—
|
(12)
|
—
|
0.2
|
100.0
|
—
|
—
|
|
Other financial assets measured at amortised cost
|
916,849
|
1,899
|
327
|
3
|
919,078
|
(85)
|
(17)
|
(55)
|
—
|
(157)
|
—
|
0.9
|
16.8
|
—
|
—
|
|
Loan and other credit-related commit-ments
|
722,352
|
19,198
|
773
|
4
|
742,327
|
(167)
|
(114)
|
(95)
|
—
|
(376)
|
—
|
0.6
|
12.3
|
—
|
0.1
|
|
Financial guarantees
|
16,588
|
1,533
|
208
|
—
|
18,329
|
(9)
|
(16)
|
(52)
|
—
|
(77)
|
0.1
|
1.0
|
25.0
|
—
|
0.4
|
|
At 31 Mar 2026
|
2,655,987
|
111,349
|
25,652
|
351
|
2,793,339
|
(1,528)
|
(2,469)
|
(7,893)
|
(71)
|
(11,961)
|
0.1
|
2.2
|
30.8
|
20.2
|
0.4
|
|
Summary of credit risk (excluding debt instruments measured at
FVOCI) by stage distribution and ECL coverage at 31 December
2025
|
|||||||||||||||
|
|
Gross
carrying/nominal amount1
|
Allowance for ECL
|
ECL coverage %
|
||||||||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
%
|
%
|
%
|
%
|
%
|
|
Loans and advances to customers at amortised cost
|
893,433
|
80,936
|
24,389
|
333
|
999,091
|
(1,201)
|
(2,318)
|
(7,097)
|
(76)
|
(10,692)
|
0.1
|
2.9
|
29.1
|
22.8
|
1.1
|
|
Loans and advances to banks at amortised cost
|
108,336
|
132
|
1
|
—
|
108,469
|
(4)
|
(2)
|
(1)
|
—
|
(7)
|
—
|
1.5
|
100.0
|
—
|
—
|
|
Other financial assets measured at amortised cost
|
888,491
|
1,651
|
184
|
—
|
890,326
|
(76)
|
(11)
|
(42)
|
—
|
(129)
|
—
|
0.7
|
22.8
|
—
|
—
|
|
Loan and other credit-related commit-ments
|
669,648
|
20,488
|
652
|
4
|
690,792
|
(1490)
|
(97)
|
(69)
|
—
|
(315)
|
—
|
0.5
|
10.6
|
—
|
—
|
|
Financial guarantees
|
15,913
|
1,371
|
192
|
—
|
17,476
|
(8)
|
(17)
|
(26)
|
—
|
(51)
|
0.1
|
1.2
|
13.5
|
—
|
0.3
|
|
At 31
Dec 2025
|
2,575,821
|
104,578
|
25,418
|
337
|
2,706,154
|
(1,4380)
|
(2,445)
|
(7,235)
|
(76)
|
(11,194)
|
0.1
|
2.3
|
28.5
|
22.6
|
0.4
|
1
Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
2
Purchased or originated credit-impaired financial assets
(‘POCI‘).
3 Stage
2 balances increased in both Personal and Wholesale lending
following introduction of the Downside 1 scenario during the
reporting period and due to changes in the underlying
portfolio.
Measurement
uncertainty and sensitivity analysis of ECL estimates
The
recognition and measurement of ECL involves the use of significant
judgement and estimation. We form multiple scenarios based on
economic forecasts and distributional estimates and apply these to
credit risk models to estimate future credit losses. The results
are then probability-weighted to determine an unbiased ECL
estimate.
Management
assessed the current economic environment, reviewed the latest
economic forecasts and market indicators and discussed key risks
and uncertainties before selecting the economic scenarios and their
probability weightings.
Economic
forecasts were subject to a high degree of uncertainty as of 31
March 2026 due to the conflict in the Middle East that began on
28 February 2026.
Management
judgemental adjustments are used where modelled allowance for ECL
does not fully reflect the identified risks and related
uncertainty, or to capture significant late-breaking
events.
Methodology
At 31
March 2026, five economic scenarios were used to calculate ECL.
These scenarios were selected to capture the latest economic
expectations and to articulate management‘s view of the range
of risks and potential outcomes. In most economic circumstances,
four standard scenarios are refreshed each quarter. In the first
quarter of 2026, a fifth scenario was added to address the
heightened risk and uncertainty arising from the conflict in the
Middle East.
Of
those four standard scenarios, the Upside, Central and Downside are
drawn from external consensus forecasts, market data and
probability distributions that represent a range of potential
economic outcomes. The fourth scenario, the Downside 2, represents
management’s view of severe downside risks in the tail of the
distribution. These standard scenarios are calibrated as global
demand shocks, where a downturn in economic activity drives a fall
in inflation and a reduction in central bank interest
rates.
A
fifth scenario, the Downside 1, was developed to capture the
supply-driven shock to energy supply and regional logistics
stemming from the Middle East conflict that began on 28 February
2026. It incorporates a sharp increase in oil prices, leading to
higher inflation and a tightening of global financial conditions.
It results in weaker growth in our major markets, with the Middle
East particularly adversely affected.
Scenarios
are refreshed and updated with the latest economic forecasts and
distributional estimates every quarter.
Description of economic scenarios
The consensus Central scenario reflects a baseline expectation that
was formed before the conflict in the Middle East that began
on 28 February 2026.
It assumes that global growth slows modestly from 2025 into 2026 as
trade growth eases following the surge in volumes that accompanied
the imposition of higher US tariffs last year.
For the US, growth is expected to be supported by tax cuts,
investment in the roll out and development of AI and the
expectation of continued monetary policy easing. Growth is forecast
to slow in the UK due to higher unemployment and weak consumer
spending, while in France it is expected to remain broadly
unchanged. For mainland China and Hong Kong, growth is also
forecast to slow in 2026 relative to 2025. The key driver of the
outlook in both markets relates to trade. Hong Kong benefited
significantly from the redirection of Chinese exports in 2025, but
the contribution to growth is expected to be smaller in the year
ahead. GDP growth is still forecast to remain close to its trend
rate however, as the housing market is expected to continue its
recovery and domestic consumption spending is expected to rise. The
Central scenario for mainland China is within the range of the
official government target. It assumes a modest slowdown relative
to 2025 as trade growth decelerates and authorities continue to
pursue supply side reforms.
Although
the Central scenario was finalised before the conflict started, it
was considered to remain a relevant baseline at the reporting date.
This assessment was based on information available at quarter end,
including the latest external economic forecasts, financial market
indicators and official communications around likely conflict
duration. A key consideration was that for our major markets
outside of the Middle East, updated economic forecasts remained
closer to the pre-war consensus than the implied paths of the
downside scenarios. At the same time, while financial market
implied interest rate expectations were extremely volatile, a
majority of economists considered that major central banks would be
able to look past a temporary, oil-driven, spike in
inflation.
Nonetheless,
the conflict has increased forecast uncertainty and this was
reflected by assigning a lower than usual weighting of 50% to the
Central scenario, with the remainder allocated to the more severe
outcomes. Risks to the baseline outlook are captured in outer
scenarios.
The
three standard outer scenarios, comprising an Upside and two
Downsides, are configured around tariff and other risks, which
drive demand-side shocks for most markets. In those scenarios, GDP
and inflation move together directionally and in the downside
scenarios they fall. To capture the risks attached to the Middle
East conflict a fifth scenario was deployed, which is configured as
a supply shock. In this scenario, disruption to the transportation
of oil, gas and other critical materials from the region drives a
rise in commodity prices that increases inflation, even as GDP
growth is slowing and unemployment is increasing.
The
five global scenarios used for calculating ECL at 31 March 2026
were:
-
The consensus
Central scenario: This scenario was formed before the conflict that
began on 28 February 2026, and assumes moderate rates of growth
through 2026. The scenario is consistent with a US tariff rate,
measured as an effective trade-weighted average, of 14%, compared
with 15% at the end of 2025. Although growth in trade is forecast
to slow, the scenario assumes that GDP growth in most of our main
markets benefits from continued policy support in the form of the
gradual lowering of policy interest rates and deficit-financed
fiscal spending. In addition, after rising through 2025
unemployment is forecast to stabilise, albeit at the higher level.
The US Federal Reserve and the BoE are expected to continue to
loosen monetary policy, while the European Central Bank is expected
to keep interest rates on hold.
-
The consensus
Upside scenario: This scenario features faster growth in economic
activity in the near term compared with the consensus Central
scenario. In this scenario, trade and geopolitical tensions ease
and the improvement in confidence drives an acceleration in GDP
growth. Unemployment also falls and equity markets and house prices
see accelerated gains.
-
The consensus
Downside scenario: This scenario features weaker economic activity
compared with the Central scenario. For most markets, it
incorporates a mild to moderate recession, driven by an escalation
in tariffs and the crystallisation of other risks. In this
scenario, growth weakens, unemployment rises and equity markets and
house prices contract.
-
The Downside 1
scenario: This scenario explores the risks associated with the
conflict in the Middle East that began on 28 February 2026 and is
calibrated as a supply shock in which the conflict persists into
the second quarter of 2026, with recovery over subsequent quarters.
In the scenario, GDP falls, and inflation and policy interest rates
rise. The scenario features a period of disruption to shipping
through the Strait of Hormuz and damage to regional oil and gas
infrastructure. The price of Brent crude oil rises to $130/bbl
through the second quarter of 2026 and remains at over $100/bbl in
the third, before falling back below $100/bbl by year end. The
severity of the scenario varies significantly by market and is
designed to reflect the exposure and sensitivity of each market
both to the conflict and to higher energy costs. For most markets,
the expected impact is a moderate slowdown in growth below the
Central scenario, but it also features a significant rise in
inflation above the Central scenario that prompts major central
banks to raise interest rates. The most severe impact is seen in
the Middle East, where many markets are assumed to enter
recession.
-
The Downside 2
scenario: This scenario reflects management’s view of the
tail end of the economic distribution. It incorporates the
simultaneous crystallisation of a number of risks that leads to a
deep global recession. The subsequent drop in demand leads to a
steep fall in commodity prices, and a rapid increase in
unemployment. The narrative features an escalation in tariff
actions and retaliation globally and further intensification of
geopolitical crises. The scenario is consistent with the US tariff
rate, measured as an effective trade-weighted average, rising to
25% at the end of 2026.
The
following tables describe key macroeconomic variables in the
consensus Central scenario, consensus Upside, consensus Downside,
Downside 1 and Downside 2 scenarios.
|
Consensus Central scenario 2Q26–1Q31 (as at
1Q26)
|
|||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|
GDP (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
1.1
|
2.5
|
2.5
|
4.5
|
1.0
|
4.8
|
1.3
|
|
2027
|
1.4
|
2.0
|
2.4
|
4.4
|
1.1
|
4.0
|
1.9
|
|
2028
|
1.4
|
2.0
|
2.3
|
4.2
|
1.2
|
3.9
|
2.1
|
|
2029
|
1.4
|
2.0
|
2.2
|
4.1
|
1.2
|
3.7
|
2.2
|
|
2030
|
1.5
|
2.0
|
2.2
|
4.0
|
1.2
|
3.5
|
2.2
|
|
5-year
average1
|
1.4
|
2.1
|
2.3
|
4.2
|
1.2
|
3.8
|
2.0
|
|
Unemployment rate (%)
|
|
|
|
|
|
|
|
|
2026
|
5.1
|
4.5
|
3.5
|
5.2
|
7.7
|
2.3
|
2.8
|
|
2027
|
5.0
|
4.3
|
3.4
|
5.2
|
7.6
|
2.2
|
3.1
|
|
2028
|
4.9
|
4.2
|
3.1
|
5.1
|
7.4
|
2.1
|
3.1
|
|
2029
|
4.8
|
4.2
|
3.0
|
5.0
|
7.4
|
2.1
|
3.1
|
|
2030
|
4.7
|
4.1
|
3.0
|
5.0
|
7.3
|
2.0
|
3.1
|
|
5-year
average1
|
4.9
|
4.2
|
3.2
|
5.1
|
7.5
|
2.1
|
3.0
|
|
House prices (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
2.0
|
1.5
|
5.2
|
(3.2
|
3.5
|
6.3
|
5.8
|
|
2027
|
2.2
|
1.8
|
2.7
|
1.0
|
5.3
|
3.2
|
4.5
|
|
2028
|
3.1
|
2.5
|
3.1
|
3.1
|
4.2
|
2.3
|
4.4
|
|
2029
|
2.7
|
2.9
|
2.7
|
3.4
|
3.2
|
2.0
|
4.3
|
|
2030
|
2.4
|
3.0
|
2.3
|
2.3
|
2.3
|
2.1
|
4.2
|
|
5-year
average1
|
2.5
|
2.4
|
3.1
|
1.6
|
3.7
|
2.9
|
4.4
|
|
Inflation (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
2.5
|
2.7
|
1.7
|
0.7
|
1.2
|
1.9
|
3.7
|
|
2027
|
2.2
|
2.4
|
1.8
|
1.0
|
1.6
|
1.8
|
3.6
|
|
2028
|
2.1
|
2.2
|
1.9
|
1.4
|
2.0
|
1.9
|
3.4
|
|
2029
|
2.1
|
2.2
|
2.1
|
1.5
|
2.1
|
1.9
|
3.4
|
|
2030
|
2.0
|
2.1
|
2.2
|
1.5
|
2.0
|
1.9
|
3.4
|
|
5-year
average1
|
2.1
|
2.3
|
2.0
|
1.2
|
1.8
|
1.9
|
3.5
|
|
Central bank policy rate (annual average, %)2
|
|
|
|
|
|
|
|
|
2026
|
3.6
|
3.5
|
3.9
|
3.0
|
2.1
|
3.5
|
6.9
|
|
2027
|
3.6
|
3.1
|
3.5
|
3.0
|
2.2
|
3.2
|
7.2
|
|
2028
|
3.7
|
3.1
|
3.5
|
3.0
|
2.4
|
3.2
|
7.6
|
|
2029
|
3.8
|
3.3
|
3.7
|
3.2
|
2.5
|
3.3
|
8.0
|
|
2030
|
3.9
|
3.4
|
3.8
|
3.3
|
2.6
|
3.5
|
8.2
|
|
5-year
average1
|
3.7
|
3.3
|
3.7
|
3.1
|
2.4
|
3.3
|
7.7
|
1 The
five-year average is calculated over a projected period of 20
quarters from 2Q26 to 1Q31.
2 For
mainland China, the policy rate shown is the Loan Prime
Rate.
|
Consensus Central scenario 2026–2030 (as at
4Q25)
|
|||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|
GDP (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
1.1
|
1.9
|
2.3
|
4.4
|
0.9
|
4.7
|
1.3
|
|
2027
|
1.4
|
2.0
|
2.3
|
4.2
|
1.2
|
4.1
|
2.0
|
|
2028
|
1.5
|
2.1
|
2.3
|
4.0
|
1.3
|
3.8
|
2.2
|
|
2029
|
1.5
|
2.1
|
2.4
|
3.8
|
1.3
|
3.5
|
2.2
|
|
2030
|
1.5
|
2.0
|
2.4
|
3.8
|
1.3
|
3.5
|
2.2
|
|
5-year
average1
|
1.4
|
2.0
|
2.3
|
4.0
|
1.2
|
3.9
|
2.0
|
|
Unemployment rate (%)
|
|
|
|
|
|
|
|
|
2026
|
4.9
|
4.4
|
3.6
|
5.2
|
7.6
|
2.5
|
3.2
|
|
2027
|
4.7
|
4.3
|
3.4
|
5.2
|
7.6
|
2.4
|
3.2
|
|
2028
|
4.7
|
4.1
|
3.1
|
5.1
|
7.5
|
2.4
|
3.2
|
|
2029
|
4.7
|
4.1
|
3.0
|
5.0
|
7.4
|
2.4
|
3.1
|
|
2030
|
4.7
|
4.1
|
3.0
|
5.0
|
7.4
|
2.4
|
3.1
|
|
5-year
average1
|
4.7
|
4.2
|
3.2
|
5.1
|
7.5
|
2.4
|
3.2
|
|
House prices (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
1.2
|
1.1
|
0.5
|
(1.6
|
4.3
|
5.8
|
4.8
|
|
2027
|
2.8
|
1.9
|
1.5
|
2.1
|
5.0
|
3.2
|
4.5
|
|
2028
|
3.3
|
2.7
|
2.5
|
3.5
|
4.1
|
2.3
|
4.4
|
|
2029
|
2.7
|
3.2
|
2.1
|
3.4
|
3.1
|
2.0
|
4.3
|
|
2030
|
2.4
|
3.2
|
2.1
|
2.3
|
2.2
|
2.1
|
4.2
|
|
5-year
average1
|
2.5
|
2.4
|
1.8
|
1.9
|
3.7
|
3.1
|
4.4
|
|
Inflation
(annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
2.5
|
2.9
|
1.8
|
0.7
|
1.4
|
2.0
|
3.7
|
|
2027
|
2.1
|
2.3
|
1.9
|
1.2
|
1.7
|
1.9
|
3.6
|
|
2028
|
2.1
|
2.2
|
2.0
|
1.4
|
2.1
|
1.9
|
3.5
|
|
2029
|
2.0
|
2.2
|
2.2
|
1.5
|
2.1
|
2.0
|
3.4
|
|
2030
|
2.0
|
2.2
|
2.2
|
1.5
|
1.9
|
2.0
|
3.4
|
|
5-year
average1
|
2.2
|
2.4
|
2.0
|
1.3
|
1.9
|
1.9
|
3.5
|
|
Central
bank policy rate (annual average, %)2
|
|
|
|
|
|
|
|
|
2026
|
3.5
|
3.4
|
3.8
|
3.0
|
1.9
|
3.5
|
7.0
|
|
2027
|
3.4
|
3.1
|
3.5
|
3.0
|
2.0
|
3.1
|
7.2
|
|
2028
|
3.5
|
3.2
|
3.6
|
3.1
|
2.1
|
3.3
|
7.5
|
|
2029
|
3.7
|
3.4
|
3.8
|
3.1
|
2.3
|
3.4
|
7.7
|
|
2030
|
3.8
|
3.6
|
3.9
|
3.2
|
2.5
|
3.6
|
7.9
|
|
5-year
average1
|
3.6
|
3.3
|
3.7
|
3.1
|
2.2
|
3.4
|
7.5
|
1 The five-year average is
calculated over a 20-quarter period from 2Q26 to 1Q31.
2 For
mainland China, the policy rate shown is the Loan Prime
Rate.
|
Consensus Upside scenario 2Q26–1Q31 (as at 1Q26)
|
|||||||||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
||||||||||||||
|
GDP
level (%, start-to-peak)1
|
10.8
|
|
(1Q31)
|
15.1
|
|
(1Q31)
|
19.0
|
|
(1Q31)
|
29.5
|
|
(1Q31)
|
8.3
|
|
(1Q31)
|
28.4
|
|
(1Q31)
|
16.5
|
|
(1Q31)
|
|
Unemployment
rate (%, min)2
|
3.5
|
|
(1Q28)
|
3.6
|
|
(1Q28)
|
2.9
|
|
(3Q28)
|
4.7
|
|
(1Q28)
|
6.8
|
|
(1Q28)
|
1.8
|
|
(1Q28)
|
2.4
|
|
(4Q26)
|
|
House
price index (%, start-to-peak)1
|
18.9
|
|
(1Q31)
|
22.6
|
|
(1Q31)
|
24.6
|
|
(4Q30)
|
13.3
|
|
(1Q31)
|
22.0
|
|
(1Q31)
|
21.1
|
|
(1Q31)
|
29.3
|
|
(1Q31)
|
|
Inflation
rate (YoY % change, max)3
|
3.3
|
|
(2Q27)
|
3.6
|
|
(4Q26)
|
2.7
|
|
(1Q27)
|
1.5
|
|
(4Q29)
|
2.3
|
|
(4Q28)
|
2.5
|
|
(2Q26)
|
4.0
|
|
(1Q27)
|
|
Central
bank policy rate (%, max)3
|
4.0
|
|
(1Q31)
|
3.7
|
|
(2Q26)
|
4.1
|
|
(2Q26)
|
3.4
|
|
(2Q27)
|
2.7
|
|
(1Q27)
|
3.7
|
|
(2Q26)
|
8.4
|
|
(1Q31)
|
|
Consensus Upside scenario 2026–2030 (as at 4Q25)
|
|||||||||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland
China
|
France
|
UAE
|
Mexico
|
||||||||||||||
|
GDP
level (%, start-to-peak)1
|
11.0
|
|
(4Q30)
|
15.2
|
|
(4Q30)
|
20.7
|
|
(4Q30)
|
28.6
|
|
(4Q30)
|
8.5
|
|
(4Q30)
|
29.0
|
|
(4Q30)
|
16.9
|
|
(4Q30)
|
|
Unemployment
rate (%, min)2
|
3.2
|
|
(4Q27)
|
3.5
|
|
(4Q27)
|
2.8
|
|
(2Q28)
|
4.7
|
|
(4Q27)
|
6.6
|
|
(4Q27)
|
2.0
|
|
(4Q27)
|
2.8
|
|
(3Q26)
|
|
House
price index (%, start-to-peak)1
|
20.0
|
|
(4Q30)
|
23.2
|
|
(4Q30)
|
19.4
|
|
(4Q30)
|
14.9
|
|
(4Q30)
|
22.6
|
|
(4Q30)
|
22.2
|
|
(4Q30)
|
29.5
|
|
(4Q30)
|
|
Inflation
rate (YoY % change, max)3
|
3.5
|
|
(1Q26)
|
3.6
|
|
(3Q26)
|
2.9
|
|
(2Q26)
|
1.5
|
|
(4Q30)
|
2.4
|
|
(4Q27)
|
3.1
|
|
(2Q26)
|
4.2
|
|
(1Q26)
|
|
Central
bank policy rate (%, max)3
|
3.9
|
|
(1Q26)
|
3.9
|
|
(1Q26)
|
4.2
|
|
(1Q26)
|
3.4
|
|
(1Q27)
|
2.5
|
|
(4Q30)
|
3.9
|
|
(1Q26)
|
8.1
|
|
(4Q30)
|
1
Cumulative change from the start of the scenario to the highest
level observed over the 20-quarter projection.
2
Lowest projected unemployment in the scenario.
3 The
table shows the highest projected policy rate and year-on-year
percentage change in inflation in the scenario. For mainland China,
the policy rate shown is the Loan Prime Rate.
|
Consensus Downside scenario 2Q26–1Q31 (as at
1Q26)
|
|||||||||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
||||||||||||||
|
GDP
level (%, start-to-trough)1
|
(0.4
|
)
|
(2Q28)
|
(0.6
|
)
|
(4Q26)
|
(2.5
|
)
|
(3Q27)
|
(1.7
|
)
|
(4Q26)
|
(0.2
|
)
|
(3Q26)
|
0.1
|
|
(2Q26)
|
(1.3
|
)
|
(1Q27)
|
|
Unemployment
rate (%, max)2
|
6.4
|
|
(1Q27)
|
5.3
|
|
(4Q26)
|
4.7
|
|
(2Q27)
|
6.8
|
|
(1Q28)
|
8.4
|
|
(2Q27)
|
2.9
|
|
(4Q27)
|
3.5
|
|
(1Q27)
|
|
House
price index (%, start-to-trough)1
|
(4.2
|
)
|
(1Q27)
|
(2.8
|
)
|
(2Q27)
|
(1.5
|
)
|
(2Q27)
|
(6.1
|
)
|
(2Q27)
|
0.7
|
|
(2Q26)
|
(3.6
|
)
|
(3Q26)
|
0.5
|
|
(2Q26)
|
|
Inflation
rate (YoY % change)3
|
1.0
|
|
(1Q27)
|
3.1
|
|
(2Q26)
|
0.8
|
|
(1Q27)
|
(2.6
|
)
|
(4Q26)
|
0.6
|
|
(3Q26)
|
0.6
|
|
(1Q27)
|
4.5
|
|
(3Q26)
|
|
Central
bank policy rate (%)3
|
2.4
|
|
(1Q29)
|
3.5
|
|
(1Q31)
|
3.9
|
|
(1Q31)
|
1.5
|
|
(1Q27)
|
0.9
|
|
(4Q26)
|
3.6
|
|
(1Q31)
|
9.4
|
|
(3Q26)
|
|
Consensus
Downside scenario 2026–2030 (as at 4Q25)
|
|||||||||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland
China
|
France
|
UAE
|
Mexico
|
||||||||||||||
|
GDP
level (%, start-to-trough)1
|
(0.2
|
)
|
(2Q27)
|
(0.8
|
)
|
(3Q26)
|
(1.7
|
)
|
(4Q27)
|
(1.7
|
)
|
(3Q26)
|
(0.4
|
)
|
(3Q26)
|
0.4
|
|
(1Q26)
|
(1.0
|
)
|
(1Q27)
|
|
Unemployment
rate (%, max)2
|
6.2
|
|
(4Q26)
|
5.3
|
|
(3Q26)
|
4.8
|
|
(4Q26)
|
6.8
|
|
(4Q27)
|
8.6
|
|
(3Q26)
|
3.2
|
|
(3Q27)
|
3.8
|
|
(3Q26)
|
|
House
price index (%, start-to-trough)1
|
(4.1
|
)
|
(1Q27)
|
(3.1
|
)
|
(1Q27)
|
(3.8
|
)
|
(1Q27)
|
(5.6
|
)
|
(1Q27)
|
0.7
|
|
(1Q26)
|
(3.4
|
)
|
(2Q26)
|
0.6
|
|
(1Q26)
|
|
Inflation
rate (YoY % change)3
|
1.3
|
|
(3Q26)
|
3.4
|
|
(1Q26)
|
0.1
|
|
(4Q26)
|
(2.9
|
)
|
(4Q26)
|
0.4
|
|
(4Q26)
|
0.5
|
|
(4Q26)
|
4.7
|
|
(1Q26)
|
|
Central
bank policy rate (%)3
|
2.2
|
|
(3Q28)
|
4.6
|
|
(2Q26)
|
5.0
|
|
(2Q26)
|
1.5
|
|
(4Q26)
|
0.6
|
|
(1Q27)
|
4.6
|
|
(2Q26)
|
9.5
|
|
(2Q26)
|
1
Cumulative change from the start of the scenario to the lowest
level observed over the 20-quarter projection. If the projected
series does not fall below its starting level, the value reported
is the smallest positive cumulative change over the projection
horizon.
2 The
highest projected unemployment in the scenario.
3 The
table shows the peak year-on-year percentage change in inflation
and peak projected policy rates for the US and Mexico. For all
other countries and territories, the trough is reported. For the
UAE and Hong Kong, the policy rate is also shown as its peak,
reflecting their US dollar-linked exchange rate regimes. For
mainland China, the policy rate shown is the Loan Prime
Rate.
|
Downside 1 scenario 2Q26–1Q31 (as at 1Q26)
|
|||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|
GDP (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
0.6
|
2.0
|
2.0
|
3.6
|
0.6
|
2.9
|
1.3
|
|
2027
|
0.7
|
1.3
|
1.7
|
3.1
|
0.6
|
1.3
|
1.4
|
|
2028
|
1.4
|
1.9
|
2.3
|
4.1
|
1.2
|
3.3
|
2.0
|
|
2029
|
1.4
|
2.0
|
2.2
|
4.1
|
1.2
|
3.7
|
2.2
|
|
2030
|
1.5
|
2.0
|
2.2
|
4.0
|
1.2
|
3.5
|
2.2
|
|
5-year
average1
|
1.1
|
1.8
|
2.0
|
3.7
|
1.0
|
2.8
|
1.8
|
|
Unemployment rate (%)
|
|
|
|
|
|
|
|
|
2026
|
5.3
|
4.8
|
4.1
|
5.3
|
8.1
|
2.8
|
3.1
|
|
2027
|
5.6
|
4.8
|
3.8
|
5.8
|
8.4
|
3.1
|
3.3
|
|
2028
|
5.3
|
4.5
|
3.1
|
5.8
|
8.0
|
2.7
|
3.1
|
|
2029
|
4.8
|
4.2
|
3.0
|
5.1
|
7.3
|
2.3
|
3.1
|
|
2030
|
4.7
|
4.1
|
3.0
|
5.0
|
7.2
|
2.2
|
3.1
|
|
5-year
average1
|
5.1
|
4.4
|
3.4
|
5.4
|
7.8
|
2.6
|
3.1
|
|
House prices (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
(1.3
|
(0.3
|
4.7
|
(3.7
|
2.0
|
0.7
|
5.7
|
|
2027
|
(5.4
|
(2.0
|
1.9
|
(1.2
|
2.7
|
(5.7
|
3.8
|
|
2028
|
3.1
|
2.6
|
3.1
|
2.8
|
4.2
|
4.4
|
3.8
|
|
2029
|
4.0
|
4.0
|
2.7
|
3.4
|
3.2
|
3.2
|
4.1
|
|
2030
|
3.4
|
4.1
|
2.3
|
2.3
|
2.3
|
2.1
|
4.2
|
|
5-year
average1
|
0.9
|
1.8
|
2.8
|
1.1
|
2.9
|
0.6
|
4.1
|
|
Inflation (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2026
|
3.9
|
3.4
|
1.8
|
0.8
|
2.1
|
2.1
|
4.9
|
|
2027
|
3.2
|
2.8
|
2.0
|
1.2
|
2.2
|
1.3
|
3.9
|
|
2028
|
2.1
|
2.2
|
1.9
|
1.4
|
2.0
|
1.4
|
2.4
|
|
2029
|
2.1
|
2.2
|
2.1
|
1.5
|
2.1
|
1.5
|
2.5
|
|
2030
|
2.0
|
2.1
|
2.2
|
1.5
|
2.0
|
2.0
|
2.6
|
|
5-year
average1
|
2.6
|
2.5
|
2.1
|
1.3
|
2.1
|
1.7
|
3.2
|
|
Central bank policy rate (annual average, %)2
|
|
|
|
|
|
|
|
|
2026
|
4.0
|
3.9
|
4.3
|
2.8
|
2.2
|
3.9
|
9.3
|
|
2027
|
3.7
|
3.6
|
3.9
|
2.7
|
2.3
|
3.6
|
7.7
|
|
2028
|
3.7
|
3.4
|
3.8
|
2.7
|
2.4
|
3.5
|
5.5
|
|
2029
|
3.8
|
3.5
|
3.9
|
2.7
|
2.5
|
3.5
|
8.1
|
|
2030
|
3.9
|
3.5
|
3.9
|
2.7
|
2.6
|
3.5
|
8.2
|
|
5-year
average1
|
3.8
|
3.6
|
3.9
|
2.7
|
2.4
|
3.6
|
7.8
|
1 The
five-year average is calculated over a 20-quarter period from 2Q26
to 1Q31.
2 For
mainland China, the policy rate shown is the Loan Prime
Rate.
|
Downside 2 scenario 2Q26–1Q31 (as at 1Q26)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP
level (%, start-to-trough)1
|
(5.4)
|
(3Q27)
|
(4.3)
|
(2Q27)
|
(10.2)
|
(3Q27)
|
(6.1)
|
(2Q27)
|
(6.2)
|
(3Q27)
|
(6.0)
|
(3Q27)
|
(9.9)
|
(3Q27)
|
|
Unemployment
rate (%, max)2
|
9.0
|
(3Q27)
|
9.3
|
(1Q28)
|
6.9
|
(1Q27)
|
7.0
|
(1Q28)
|
10.7
|
(2Q28)
|
3.6
|
(4Q26)
|
5.1
|
(3Q27)
|
|
House
price index (%, start-to-trough)1
|
(24.1)
|
(1Q28)
|
(16.7)
|
(1Q27)
|
(14.7)
|
(2Q29)
|
(24.0)
|
(1Q28)
|
(6.1)
|
(4Q27)
|
(32.6)
|
(2Q28)
|
0.5
|
(2Q26)
|
|
Inflation
rate (YoY % change)3
|
(2.1)
|
(1Q27)
|
3.7
|
(3Q26)
|
(1.8)
|
(3Q27)
|
(6.1)
|
(1Q27)
|
(0.3)
|
(1Q27)
|
0.4
|
(1Q27)
|
4.7
|
(3Q26)
|
|
Central
bank policy rate (%)3
|
1.6
|
(2Q27)
|
3.1
|
(2Q26)
|
3.5
|
(2Q26)
|
1.2
|
(3Q27)
|
0.4
|
(4Q26)
|
3.1
|
(2Q26)
|
9.8
|
(3Q26)
|
|
Downside 2 scenario 2026–2030 (as at 4Q25)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland
China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP
level (%, start-to-trough)1
|
(5.3)
|
(2Q27)
|
(4.5)
|
(1Q27)
|
(9.3)
|
(3Q27)
|
(6.0)
|
(1Q27)
|
(6.2)
|
(2Q27)
|
(5.7)
|
(2Q27)
|
(10.0)
|
(1Q27)
|
|
Unemployment
rate (%, max)2
|
8.9
|
(2Q27)
|
9.0
|
(1Q28)
|
7.0
|
(4Q26)
|
7.0
|
(4Q27)
|
10.7
|
(4Q27)
|
3.9
|
(3Q26)
|
5.2
|
(2Q27)
|
|
House
price index (%, start-to-trough)1
|
(24.2)
|
(4Q27)
|
(17.1)
|
(4Q26)
|
(19.6)
|
(2Q29)
|
(23.1)
|
(4Q27)
|
(5.9)
|
(3Q27)
|
(30.5)
|
(1Q28)
|
0.6
|
(1Q26)
|
|
Inflation
rate (YoY % change)3
|
(1.9)
|
(4Q26)
|
4.1
|
(2Q26)
|
(1.7)
|
(2Q27)
|
(6.5)
|
(4Q26)
|
(0.6)
|
(4Q26)
|
0.3
|
(4Q26)
|
4.8
|
(1Q26)
|
|
Central
bank policy rate (%)3
|
1.4
|
(1Q27)
|
4.7
|
(2Q26)
|
5.0
|
(2Q26)
|
1.2
|
(2Q27)
|
0.1
|
(4Q26)
|
4.7
|
(2Q26)
|
9.9
|
(2Q26)
|
1
Cumulative change from the start of the scenario to the lowest
level observed over the 20-quarter projection. If the projected
series does not fall below its starting level, the value reported
is the smallest positive cumulative change over the projection
horizon.
2 The
highest projected unemployment in the scenario
3 The
table shows the peak year-on-year percentage change in inflation
and peak projected policy rates for the US and Mexico, and the
trough for all other countries and territories. For the UAE and
Hong Kong, the policy rate is also shown as its peak, reflecting
their US dollar-linked exchange rate regimes. For mainland China,
the policy rate shown is the Loan Prime Rate.
The
following table describes the probabilities assigned in each
scenario.
|
Scenario weightings, %
|
||||||||
|
|
Standard weights
|
UK
|
US
|
Hong Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|
1Q26
|
|
|
|
|
|
|
|
|
|
Consensus
Upside
|
10
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
|
Consensus
Central
|
75
|
50
|
50
|
50
|
50
|
50
|
50
|
50
|
|
Consensus
Downside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Downside
1
|
—
|
30
|
30
|
30
|
30
|
30
|
30
|
30
|
|
Downside
2
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
|
|
|
|
|
|
|
|
|
|
|
4Q25
|
|
|
|
|
|
|
|
|
|
Consensus Upside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Consensus Central
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
|
Consensus Downside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Downside 2
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
Scenario
weightings for the standard outer scenarios are calibrated to
probabilities that are determined with reference to consensus
forecast probability distributions. Management may then choose to
vary weights if they assess that the calibration lags more recent
events, or does not reflect their view of the distribution of
economic risk. Management’s view of the scenarios and the
probability distribution takes into consideration the relationship
of the consensus scenario to both internal and external assessments
of risk.
At 31
March 2026, management concluded that the conflict in the Middle
East had materially increased uncertainty around the outlook and
risk distribution, particularly for energy prices, inflation and
monetary policy. The introduction of a fifth scenario offered scope
to reassign weight from the Central and Upside to a scenario that
appropriately reflects near-term risks. Weights were therefore
adjusted away from the standard calibration to address elevated
forecast uncertainty and an assessment that the balance of risk had
skewed more significantly to the downside. The re-weighting of
scenarios was applied on a global basis. The fifth scenario
incorporates region-specific variations to reflect differing
impacts of the Middle East conflict, which allows for a uniform
adjustment to scenario weights across all
jurisdictions.
The
consensus Upside and Central scenarios for all key markets were
assigned a combined weighting of 55%. The Downside 1 scenario,
which addresses the escalating economic risks associated with the
Middle East conflict that began on 28 February 2026, was assigned a
30% weighting. The remaining 15% was assigned to the two other
Downside scenarios, with the consensus Downside scenario given a
weight of 10% and 5% assigned to the Downside 2.
Management
used the consensus and additional scenarios with their respective
weightings, together with management judgemental adjustments, to
ensure total reported ECL allowance was reflective of expected
credit losses at the reporting date.
Management judgemental adjustments
In the
context of IFRS 9, management judgemental adjustments are typically
short-term increases or decreases to the modelled allowance for ECL
at either a customer, segment or portfolio level where management
believes allowances do not sufficiently reflect the credit
risk/expected credit losses at the reporting date. These can relate
to risks or uncertainties that are not reflected in the models
and/or to any late-breaking events with significant uncertainty,
subject to management review and challenge. The drivers of
management judgemental adjustments continue to evolve with the
economic environment and as new risks emerge. Further details can
be found in the section ‘Management judgemental
adjustments‘ on page 121 of the Annual Report and Accounts
2025.
Management
judgemental adjustments are reviewed under the governance process
for IFRS 9, as detailed in the section ‘Credit risk
management’ on page 107 of the Annual Report and Accounts
2025.
At 31
March 2026, total management judgemental adjustments for retail and
wholesale loans increased the allowance for ECL by $0.2bn
(31 December 2025: $0.2bn increase). The wholesale portfolio
management judgemental adjustments increased by $0.1bn from
31 December 2025, driven primarily by uncertainty from the
conflict in the Middle East that began on 28 February 2026, as well
as market-specific uncertainties across a number of geographies.
For the retail portfolios, management judgemental adjustments
increased the ECL allowances by $0.1bn. Market-specific
uncertainties in relation to the Middle East conflict were captured
through management judgemental adjustments. The adjustments reflect
where the increase in risk was not fully captured by modelled
outcomes, particularly for geographies with localised impacts, such
as the UAE. In addition, through continuous monitoring of the
macroeconomic environment and modelled ECL, there were no other
significant management judgemental adjustments applied to the
retail portfolio at 31 March 2026.
Economic scenarios sensitivity analysis of ECL
estimates
Management
considered the sensitivity of the ECL outcome against the economic
forecasts as part of the ECL governance process by recalculating
the ECL under each scenario described above for selected
portfolios, applying a 100% weighting to each scenario in turn. The
weighting is reflected in both the determination of a significant
increase in credit risk and the measurement of the resulting
ECL.
The
allowance for ECL calculated for the Upside and Downside scenarios
should not be taken to represent the upper and lower limits of
possible ECL outcomes. The impact of defaults that might occur in
the future under different economic scenarios is captured by
recalculating ECL for loans at the balance sheet date.
There
is a particularly high degree of estimation uncertainty in numbers
representing more severe risk scenarios when assigned a 100%
weighting.
For
wholesale credit risk exposures, the sensitivity analysis excludes
allowance for ECL and financial instruments related to defaulted
(stage 3) obligors. Loans to defaulted obligors are a small portion
of the overall wholesale lending exposure, even if representing the
majority of the allowance for ECL. The measurement of stage 3 ECL
is relatively more sensitive to credit factors specific to the
obligor than future economic scenarios, and therefore the effects
of macroeconomic factors are not necessarily the key consideration
when performing individual assessments of allowances for obligors
in default. Due to the range and specificity of the credit factors
to which the ECL is sensitive, it is not possible to provide a
meaningful alternative sensitivity analysis for a consistent set of
risks across all defaulted obligors.
For
retail credit risk exposures, the sensitivity analysis includes ECL
allowance for loans and advances to customers related to defaulted
obligors. This is because the retail ECL allowance for secured
mortgage portfolios, including loans in all stages, is sensitive to
macroeconomic variables.
Group ECL sensitivity results
The
allowance for ECL of the scenarios and management judgemental
adjustments is highly sensitive to movements in economic forecasts.
If the Group allowance for ECL balance was estimated solely on the
basis of the consensus Upside, consensus Central, consensus
Downside, Downside 1 and the Downside 2 scenarios at 31 March 2026,
it would increase/(decrease) as presented in the below
table.
|
|
Retail
|
Wholesale1
|
|
Total Group ECL at 31 Mar 20262
|
$bn
|
$bn
|
|
Reported ECL
|
2.7
|
2.0
|
|
Scenarios
|
|
|
|
100% consensus Central scenario
|
(0.1)
|
(0.3)
|
|
100% consensus Upside scenario
|
(0.1)
|
(0.7)
|
|
100% consensus Downside scenario
|
0.0
|
0.3
|
|
100%
Downside 1 scenario
|
0.0
|
0.2
|
|
100% Downside 2 scenario
|
0.9
|
2.5
|
|
Total
Group ECL at 31 Dec 20252
|
|
|
|
Reported ECL
|
2.7
|
1.9
|
|
Scenarios
|
|
|
|
100%
consensus Central scenario
|
(0.0)
|
0.0
|
|
100% consensus Upside scenario
|
(0.1)
|
(0.3)
|
|
100%
consensus Downside scenario
|
0.0
|
0.6
|
|
100%
Downside 2 scenario
|
0.9
|
2.7
|
1
Includes low credit-risk financial instruments, such as debt
instruments at FVOCI, which have high carrying values but low ECL
under all the scenarios.
2 ECL
sensitivities exclude portfolios utilising less complex modelling
approaches for the retail portfolio and defaulted obligors for the
wholesale portfolio.
At 31
March 2026, the Group reported ECL allowance remained stable in the
retail portfolio and increased by $0.1bn in the wholesale
portfolio, compared with 31 December 2025. The reported ECL
allowance included the consideration of the additional Downside 1
scenario, which was introduced in the reporting period, and the
100% scenario ECL is presented above.
The
Downside 1 scenario results incorporate more significant regional
differentiation than the consensus Downside, to reflect country
level sensitivities on their economies from the Middle East
conflict.
In the
retail portfolio, the allowances for ECL under each of the 100%
consensus scenarios and the Downside 2 scenario were consistent
with 31 December 2025. The consensus Downside and Downside 1
scenario ECL allowances were also at comparable levels and would
both increase the reported ECL allowance.
In the
Wholesale portfolio there was a marginal improvement in the
consensus scenarios relative to 31 December 2025. The Downside 1
scenario added $0.2bn to Wholesale ECL at 31 March 2026, which
affected the sensitivity to other scenarios, reducing the impact
compared with 31 December 2025. There is less sensitivity in the
consensus Downside scenario at 31 March 2026 due to this impact and
the improvement in the scenarios in certain countries and
territories, including the relative improvement in scenarios in the
US and Hong Kong.
Personal
lending
|
Total personal lending for loans and advances to customers at
amortised cost by stage distribution
|
||||||||
|
|
Gross carrying amount
|
Allowance for ECL
|
||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
190,482
|
15,109
|
1,212
|
206,803
|
(221)
|
(315)
|
(257)
|
(793)
|
|
HSBC
Bank plc
|
15,208
|
947
|
349
|
16,504
|
(13)
|
(10)
|
(99)
|
(122)
|
|
The
Hongkong and Shanghai Banking Corporation Limited
|
204,695
|
7,404
|
1,099
|
213,198
|
(206)
|
(439)
|
(169)
|
(814)
|
|
HSBC Bank Middle East Limited
|
3,882
|
313
|
51
|
4,246
|
(17)
|
(42)
|
(30)
|
(89)
|
|
HSBC North America Holdings Inc.
|
19,409
|
491
|
425
|
20,325
|
(4)
|
(12)
|
(15)
|
(31)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
11,411
|
1,125
|
807
|
13,343
|
(231)
|
(395)
|
(313)
|
(939)
|
|
Other
trading entities
|
346
|
31
|
4
|
381
|
—
|
(1)
|
(3)
|
(4)
|
|
At 31 Mar 2026
|
445,433
|
25,420
|
3,947
|
474,800
|
(692)
|
(1,214)
|
(886)
|
(2,792)
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
191,726
|
14,515
|
1,200
|
207,441
|
(201)
|
(315)
|
(256)
|
(772)
|
|
HSBC Bank plc
|
17,416
|
1,076
|
365
|
18,857
|
(16)
|
(14)
|
(107)
|
(137)
|
|
The
Hongkong and Shanghai Banking Corporation Limited
|
201,779
|
6,407
|
1,108
|
209,294
|
(199)
|
(432)
|
(170)
|
(801)
|
|
HSBC Bank Middle East Limited
|
4,061
|
134
|
47
|
4,242
|
(18)
|
(23)
|
(29)
|
(70)
|
|
HSBC North America Holdings Inc.
|
19,607
|
512
|
404
|
20,523
|
(4)
|
(12)
|
(14)
|
(30)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
11,705
|
1,212
|
817
|
13,734
|
(229)
|
(438)
|
(316)
|
(983)
|
|
Other trading entities
|
402
|
31
|
4
|
437
|
—
|
(1)
|
(3)
|
(4)
|
|
At 31 Dec 2025
|
446,696
|
23,887
|
3,945
|
474,528
|
(667)
|
(1,235)
|
(895)
|
(2,797)
|
Wholesale
lending
|
|
Gross carrying amount
|
Allowance for ECL
|
||||||||
|
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
97,697
|
13,137
|
3,210
|
—
|
114,044
|
(201)
|
(330)
|
(704)
|
|
(1,235)
|
|
HSBC
Bank plc
|
91,531
|
7,078
|
2,363
|
57
|
101,029
|
(55)
|
(113)
|
(1,014)
|
(31)
|
(1,213)
|
|
The
Hongkong and Shanghai Banking Corporation Limited
|
285,715
|
36,043
|
12,395
|
89
|
334,242
|
(192)
|
(466)
|
(3,877)
|
(35)
|
(4,570)
|
|
HSBC Bank Middle East Limited
|
27,065
|
1,167
|
1,219
|
5
|
29,456
|
(37)
|
(38)
|
(663)
|
(4)
|
(742)
|
|
HSBC North America Holdings Inc.
|
31,701
|
3,763
|
547
|
193
|
36,204
|
(37)
|
(103)
|
(175)
|
(1)
|
(316)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
12,619
|
1,976
|
379
|
—
|
14,974
|
(37)
|
(54)
|
(195)
|
—
|
(286)
|
|
Other
trading entities
|
8,358
|
135
|
284
|
—
|
8,777
|
(16)
|
(4)
|
(177)
|
—
|
(197)
|
|
Holding
companies, shared service centres and intra-Group
eliminations
|
79
|
—
|
—
|
—
|
79
|
—
|
—
|
—
|
—
|
—
|
|
At 31 Mar 2026
|
554,765
|
63,299
|
20,397
|
344
|
638,805
|
(575)
|
(1,108)
|
(6,805)
|
(71)
|
(8,559)
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
98,719
|
10,488
|
3,430
|
—
|
112,637
|
(180)
|
(325)
|
(753)
|
—
|
(1,258)
|
|
HSBC Bank plc
|
98,175
|
5,582
|
1,756
|
58
|
105,571
|
(68)
|
(96)
|
(611)
|
(29)
|
(804)
|
|
The
Hongkong and Shanghai Banking Corporation Limited
|
283,206
|
33,990
|
12,837
|
77
|
330,110
|
(171)
|
(480)
|
(3,694)
|
(41)
|
(4,386)
|
|
HSBC Bank Middle East Limited
|
26,643
|
1,171
|
1,242
|
5
|
29,061
|
(19)
|
(31)
|
(630)
|
(5)
|
(685)
|
|
HSBC North America Holdings Inc.
|
28,456
|
3,518
|
517
|
193
|
32,684
|
(41)
|
(100)
|
(145)
|
(1)
|
(287)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
12,057
|
2,268
|
378
|
—
|
14,703
|
(47)
|
(49)
|
(190)
|
—
|
(286)
|
|
Other trading entities
|
7,727
|
164
|
285
|
—
|
8,176
|
(12)
|
(4)
|
(180)
|
—
|
(196)
|
|
Holding
companies, shared service centres and intra-Group
eliminations
|
90
|
|
—
|
—
|
90
|
—
|
—
|
—
|
—
|
—
|
|
At 31 Dec 2025
|
555,073
|
57,181
|
20,445
|
333
|
633,032
|
(538)
|
(1,085)
|
(6,203)
|
(76)
|
(7,902)
|
Hong
Kong commercial real estate
In the
table below, we have disclosed information related to commercial
real estate (‘CRE’) exposures booked in Hong Kong
(excluding exposures to mainland China borrowers) by stage and
credit quality. These exposures mostly comprise lending to Hong
Kong borrowers and, to a lesser degree, borrowers
overseas.
Commercial real estate lending to customers – Hong Kong
excluding exposure to mainland China borrowers
|
|
31 Mar 2026
|
31 Dec 2025
|
|
|
$m
|
$m
|
|
Gross loans and advances
|
|
|
|
By stage
|
|
|
|
Stage
1
|
10,764
|
10,666
|
|
Stage
2
|
12,687
|
13,652
|
|
Stage 3
|
6,033
|
6,306
|
|
By credit quality
|
|
|
|
Strong
|
3,299
|
3,314
|
|
Good
|
7,818
|
8,225
|
|
Satisfactory
|
9,792
|
10,352
|
|
Sub-standard
|
2,542
|
2,427
|
|
Credit
impaired
|
6,033
|
6,306
|
|
At
|
29,484
|
30,624
|
|
Allowance for ECL
|
(1,158)
|
(1,077)
|
The
Hong Kong CRE portfolio (excluding exposure to mainland China
borrowers) saw an increase in allowances for ECL in 1Q26,
reflecting continued weakness in property prices. However, credit
migration to the ‘credit impaired’ category was
significantly reduced in 1Q26. Exposures in this category continued
to be largely comprised of secured book, which represented 56% of
the total portfolio (31 December 2025: 57%).
‘Sub-standard’
and ‘credit-impaired’ exposures decreased to $8.6bn (31
December 2025: $8.7bn), of which 94% was secured (31 December 2025:
95%). As at 28 February 2026, the weighted average loan to value
(‘LTV’):
-
of performing
exposures rated ‘sub-standard’ was 44% (31 December
2025: 42%). There was immaterial exposure with an LTV of greater
than 70%, unchanged compared with 31 December 2025;
and
-
of
‘credit-impaired’ exposures was 75% (31 December 2025:
71%). Within this portfolio, $2.2bn had an LTV of greater than 70%
(31 December 2025: $1.9bn).
Collateral
information and LTV calculations were based on total limits,
inclusive of off-balance sheet commitments of $43.2bn as of 28
February 2026 (31 December 2025: $42.8bn).
The
unsecured portfolio remains largely stable, with some migration
within performing credit grades, with 89% of exposures rated
’strong‘ or ‘good’ (31 December 2025: 89%).
’Credit impaired‘ levels are limited. Unsecured
exposures are typically granted to strong, listed Hong Kong CRE
developers, which are commonly members of conglomerate groups with
diverse cash flows.
Market
conditions continued to stabilise in the first quarter of 2026.
However, pressure on valuations continues and liquidity remains
tight, particularly for mid-sized and sub-investment grade
corporates. As the Middle East conflict continues, inflationary
pressures and uncertainty over the trajectory of interest rates
will likely create negative sentiment and a potential softening of
demand. Nevertheless, we continue to observe positive momentum in
the residential property sector as well as improved leasing
activity in the retail property sector, underpinned by a recovery
of inbound tourism and improved consumer demand. Oversupply in the
office property sector is likely to result in pressure on rents and
capital values in 2026, although the broader Hong Kong economy
remains resilient.
We
continue to closely assess and manage the risk in the portfolio,
including through portfolio reviews and stress testing. Vulnerable
borrowers, including those with debt serviceability challenges and
higher LTV levels, are subject to heightened monitoring and
exposure management.
Capital risk
Capital
overview
Capital and liquidity adequacy metrics
|
|
At
|
|
|
|
31 Mar 2026
|
31 Dec 2025
|
|
Risk-weighted assets (‘RWAs‘) ($bn)
|
|
|
|
Credit
risk
|
689.0
|
687.0
|
|
Counterparty
credit risk
|
43.1
|
42.4
|
|
Market risk
|
32.1
|
38.5
|
|
Operational risk
|
119.6
|
120.7
|
|
Total risk-weighted assets
|
883.8
|
888.6
|
|
Capital ($bn)
|
|
|
|
Common
equity tier 1 capital
|
124.0
|
132.6
|
|
Tier 1 capital
|
146.2
|
153.4
|
|
Total capital
|
174.0
|
182.4
|
|
Capital ratios (%)
|
|
|
|
Common equity tier 1 ratio
|
14.0
|
14.9
|
|
Tier 1 ratio
|
16.5
|
17.3
|
|
Total capital ratio
|
19.7
|
20.5
|
|
Liquidity coverage ratio (‘LCR’)
|
|
|
|
Total high-quality liquid assets ($bn)
|
710.6
|
702.1
|
|
Total net cash outflow ($bn)
|
525.1
|
512.1
|
|
LCR
(%)
|
135
|
137
|
We
refer to the UK Capital Requirements Regulation, the PRA Rulebook
and any laws, regulations, requirements, rules, guidelines,
standards and policies relating to capital adequacy, leverage and
liquidity adopted by the relevant regulators, as applicable, and
which are applicable to HSBC as the ‘Prudential rules’.
Any references to European Union (’EU‘) regulations and
directives (including technical standards) should, as applicable,
be read as references to the UK’s version of such regulation
and/or directive, as onshored into UK law under the European Union
(Withdrawal) Act 2018 and as may be subsequently amended under UK
law.
Capital
figures and ratios in the previous table are calculated in
accordance with the Prudential rules. Effective 1 January 2025, the
IFRS 9 transitional arrangements came to an end, followed by the
end of the UK Capital Requirements Regulation grandfathering
provisions on 28 June 2025. Our capital figures are therefore the
same, for both the transitional and end-point basis. The LCR is
based on the average value of the preceding 12 months.
Regulatory
numbers and ratios are as presented at the date of reporting. Small
changes may arise between these numbers and ratios and those
subsequently submitted in regulatory filings. Where differences are
significant, we may restate in subsequent periods.
Capital
At 31
March 2026, our CET1 capital ratio decreased to 14.0% from 14.9% at
31 December 2025, driven by:
-
a 1.1 percentage
point decrease primarily due to the impact of strategic
transactions, mainly the privatisation of Hang Seng
Bank;
-
-
a 0.2 percentage
point decrease driven by higher RWAs excluding foreign exchange
translation differences, mainly from asset size movements, partly
offset by asset quality, and methodology and policy
changes;
-
-
a 0.1 percentage
point decrease mainly due to a fall in the fair value of
hold-to-collect-and-sell debt instruments, following higher yields,
and the net impact from foreign exchange fluctuations;
and
-
-
a 0.5 percentage
point increase in CET1 capital generation, mainly through
regulatory profits net of dividends.
Our
Pillar 2A requirement at 31 March 2026, as per the PRA’s
Individual Capital Requirement based on a point-in-time assessment,
was equivalent to 2.5% of RWAs, of which 1.5% must be met by CET1.
Throughout 1Q26, we complied with the PRA’s regulatory
capital adequacy requirement.
Leverage
Leverage ratio
|
|
At
|
|
|
|
31 Mar 2026
|
31 Dec 2025
|
|
|
$bn
|
$bn
|
|
Tier 1
capital (leverage)
|
146.2
|
153.4
|
|
Total
leverage ratio exposure
|
2,947.0
|
2,877.1
|
|
|
%
|
%
|
|
Leverage ratio
|
5.0
|
5.3
|
Our
leverage ratio was 5.0% at 31 March 2026, down from 5.3% at 31
December 2025. The decrease in tier 1 capital led to a 0.2
percentage point fall in the leverage ratio, which was compounded
by a 0.1 percentage point increase in leverage exposures, primarily
due to growth in the balance sheet.
At 31
March 2026, our UK minimum leverage ratio requirement was 3.25%,
with an additional buffer of 0.9% – comprising a 0.7%
additional leverage ratio buffer and a 0.2% countercyclical
leverage ratio buffer. These buffers translated into capital values
of $20.6bn and $5.9bn respectively. We exceeded these leverage
requirements throughout 1Q26.
Risk-weighted
assets
RWAs
by business segment
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
RWAs
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
Credit risk
|
109.1
|
129.5
|
289.9
|
70.3
|
90.2
|
689.0
|
|
Counterparty credit risk
|
0.1
|
0.1
|
40.7
|
0.7
|
1.5
|
43.1
|
|
Market risk
|
0.1
|
0.1
|
25.5
|
0.2
|
6.2
|
32.1
|
|
Operational
risk
|
23.7
|
21.5
|
62.3
|
17.3
|
(5.2)
|
119.6
|
|
At 31 Mar 2026
|
133.0
|
151.2
|
418.4
|
88.5
|
92.7
|
883.8
|
|
At 31 Dec 2025
|
136.2
|
149.6
|
415.4
|
89.9
|
97.5
|
888.6
|
|
RWAs by legal entities1
|
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding companies, shared service centres and intra-Group
eliminations
|
Total
RWAs
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
Credit risk
|
135.1
|
68.8
|
317.4
|
19.7
|
62.2
|
23.8
|
49.2
|
12.8
|
689.0
|
|
Counterparty credit risk
|
0.3
|
24.2
|
11.1
|
1.0
|
3.7
|
0.6
|
2.2
|
—
|
43.1
|
|
Market
risk2
|
0.3
|
26.9
|
18.5
|
3.4
|
3.2
|
0.5
|
1.8
|
0.1
|
32.1
|
|
Operational risk
|
23.9
|
23.1
|
63.1
|
5.1
|
8.3
|
6.1
|
5.8
|
(15.8)
|
119.6
|
|
At 31 Mar 2026
|
159.6
|
143.0
|
410.1
|
29.2
|
77.4
|
31.0
|
59.0
|
(2.9)
|
883.8
|
|
At 31 Dec 2025
|
158.0
|
146.0
|
411.8
|
27.2
|
74.0
|
32.5
|
57.0
|
2.1
|
888.6
|
1
Balances are on a third-party Group consolidated
basis.
2
Market risk RWAs are non-additive across the legal entities due to
diversification effects within the Group.
|
RWA movement by legal entities by key driver1
|
|||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||
|
|
Credit risk, counterparty credit risk and operational
risk
|
|
|
|||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc2
|
The Hongkong and Shanghai Banking Corporation Limited2
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc
|
Grupo Financiero HSBC, S.A. de C.V.
|
Other trading entities
|
Holding
companies, shared service centres and intra-Group
eliminations
|
Market risk
|
Total RWAs
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
RWAs
at 1 Jan 2026
|
157.9
|
121.1
|
392.9
|
24.8
|
71.2
|
31.9
|
54.9
|
(4.6)
|
38.5
|
888.6
|
|
Asset
size
|
2.6
|
(0.2)
|
6.6
|
1.2
|
2.4
|
(1.4)
|
3.3
|
0.5
|
(6.3)
|
8.7
|
|
Asset quality
|
1.0
|
0.2
|
(4.9)
|
—
|
0.9
|
(0.1)
|
(0.2)
|
—
|
—
|
(3.1)
|
|
Model updates
|
0.1
|
—
|
(0.5)
|
—
|
—
|
—
|
—
|
—
|
—
|
(0.4)
|
|
Methodology and policy
|
(0.4)
|
(2.4)
|
0.6
|
(0.2)
|
(0.2)
|
—
|
—
|
1.2
|
(0.1)
|
(1.5)
|
|
Acquisitions
and disposals2
|
—
|
(1.5)
|
(2.0)
|
—
|
—
|
—
|
—
|
—
|
—
|
(3.5)
|
|
Foreign
exchange movements3
|
(1.9)
|
(1.1)
|
(1.1)
|
—
|
(0.1)
|
0.1
|
(0.8)
|
(0.1)
|
—
|
(5.0)
|
|
Total RWA movement
|
1.4
|
(5.0)
|
(1.3)
|
1.0
|
3.0
|
(1.4)
|
2.3
|
1.6
|
(6.4)
|
(4.8)
|
|
RWAs at 31 Mar 2026
|
159.3
|
116.1
|
391.6
|
25.8
|
74.2
|
30.5
|
57.2
|
(3.0)
|
32.1
|
883.8
|
|
RWA movement by business segment by key driver
|
|
|
Credit risk, counterparty credit risk and operational
risk
|
Market
risk
|
Total
RWAs
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB2
|
Corporate
Centre2
|
|
||
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
|
RWAs at 1 Jan 2026
|
135.6
|
149.6
|
390.9
|
89.6
|
84.4
|
38.5
|
888.6
|
|
|
Asset size
|
1.1
|
2.5
|
8.1
|
0.1
|
3.2
|
(6.3)
|
8.7
|
|
|
Asset quality
|
(3.5)
|
0.8
|
(0.1)
|
(0.3)
|
—
|
—
|
(3.1)
|
|
|
Model updates
|
(0.5)
|
0.1
|
—
|
—
|
—
|
—
|
(0.4)
|
|
|
Methodology and
policy
|
0.8
|
(0.2)
|
(2.8)
|
0.4
|
0.4
|
(0.1)
|
(1.5)
|
|
|
Acquisitions
and disposals2
|
—
|
—
|
(0.9)
|
(1.0)
|
(1.6)
|
—
|
(3.5)
|
|
|
Foreign
exchange movements3
|
(0.6)
|
(1.7)
|
(2.3)
|
(0.5)
|
0.1
|
—
|
(5.0)
|
|
|
Total RWA movement
|
(2.7)
|
1.5
|
2.0
|
(1.3)
|
2.1
|
(6.4)
|
(4.8)
|
|
|
RWAs at 31 Mar 2026
|
132.9
|
151.1
|
392.9
|
88.3
|
86.5
|
32.1
|
883.8
|
|
1
Balances are on a third-party Group consolidated
basis.
2
Includes changes in the allocation of $0.5bn significant investment
RWAs from HSBC Bank plc to The Hongkong and Shanghai Banking
Corporation Limited, following the disposal of the UK life
insurance business.
3
Credit risk foreign exchange movements in this disclosure are
computed by retranslating RWAs into US dollars based on the
underlying transactional currencies, and other movements in the
table are presented on a constant currency basis.
Overall,
RWAs decreased by $4.8bn during 1Q26, primarily due to a decline in
market risk RWAs, foreign currency translation differences,
strategic transactions and asset quality movements, partly offset
by increased corporate lending.
Asset size
Asset
size increased by $8.7bn, of which $15.0bn related to credit risk
asset size, largely driven by higher corporate lending in our CIB
and UK businesses, and in SAB within Corporate Centre.
Market
risk RWAs decreased by $6.3bn, largely driven by approximately $7bn
from the reversal of foreign exchange (‘FX’) hedges
associated with the privatisation of Hang Seng Bank, partly offset
by other movements in FX positions.
Asset quality
The
$3.1bn decrease in RWAs was primarily due to credit quality
improvements and portfolio mix changes mainly in our Hong Kong
business, partly offset by credit risk migrations and portfolio mix
changes in our UK business.
Model updates
The
decrease of $0.4bn in RWAs was primarily driven by the
implementation of a model for Hong Kong mortgages.
Methodology and policy
The
$1.5bn decrease in RWAs was primarily due to credit risk parameter
changes, including methodology changes to our undrawn exposures
within the CIB business. This was partly offset by risk parameter
updates in our Hong Kong business.
Acquisitions and disposals
RWAs
decreased by $3.5bn as a result of increased threshold deductions
from CET1 capital due to the privatisation of Hang Seng Bank and
the sale of our business in South Africa.
Additional
information
Dividends
Fourth
interim dividend for 2025
On 25
February 2026, the Directors approved a fourth interim dividend for
2025 of $0.45 per ordinary share, which was paid on 30 April 2026
in cash. The pound sterling and Hong Kong dollar amounts of
approximately £0.333016 and HK$3.522942 were calculated using
the forward exchange rates quoted by HSBC Bank plc in London at or
about 11.00am on 20 April 2026.
First
interim dividend for 2026
On 5
May 2026, the Directors approved a first interim dividend in
respect of the financial year ending 31 December 2026 of $0.10 per
ordinary share (the ‘dividend‘), an expected
distribution of approximately $1.72bn. The dividend will be payable
on 26 June 2026 to holders of record on the Principal Register in
the UK, the Hong Kong Overseas Branch Register or the Bermuda
Overseas Branch Register on 15 May 2026.
The
dividend will be payable in US dollars, or in pounds sterling or
Hong Kong dollars at the forward exchange rates quoted by HSBC Bank
plc in London at or about 11.00am local time on 15 June 2026. The
ordinary shares in London, Hong Kong and Bermuda will be quoted
ex-dividend on 14 May 2026. American Depositary Shares
(’ADSs‘) in New York will be quoted ex-dividend on 15
May 2026.
The
default currency on the Principal Register in the UK is pounds
sterling, and dividends can also be paid in Hong Kong dollars or US
dollars, or a combination of these currencies. International
shareholders can register to join the Global Dividend Service to
receive dividends in their local currencies. Please register and
read the terms and conditions at www.investorcentre.co.uk. UK
shareholders can also register their pounds sterling bank mandates
at www.investorcentre.co.uk.
The
default currency on the Hong Kong Overseas Branch Register is Hong
Kong dollars, and dividends can also be paid in US dollars or
pounds sterling, or a combination of these currencies. Shareholders
can arrange for direct credit of Hong Kong dollar cash dividends
into their bank account, or arrange to send US dollar or pounds
sterling cheques to the credit of their bank account. Shareholders
can register for these services at www.investorcentre.com/hk.
Shareholders can also download a dividend currency election form
from www.hsbc.com/dividends, www.investorcentre.com/hk, or
www.hkexnews.hk.
The
default currency on the Bermuda Overseas Branch Register is US
dollars, and dividends can also be paid in Hong Kong dollars or
pounds sterling, or a combination of these currencies. Shareholders
can change their dividend currency election by contacting the
Bermuda investor relations team. Shareholders can download a
dividend currency election form from
www.hsbc.com/dividends.
Changes
to currency elections must be received by 10 June 2026 to be
effective for this dividend.
The
dividend will be payable on ADSs, each of which represents five
ordinary shares, on 26 June 2026 to holders of record on 15 May
2026. The dividend of $0.50 per ADS will be payable by the
depositary in US dollars. Alternatively, the cash dividend may be
invested in additional ADSs by participants in the dividend
reinvestment plan operated by the depositary. Elections must be
received by 5 June 2026.
Any
person who has acquired ordinary shares registered on the Principal
Register in the UK, the Hong Kong Overseas Branch Register or the
Bermuda Overseas Branch Register but who has not lodged the share
transfer with the Principal Registrar in the UK, Hong Kong Overseas
Branch Registrar or Bermuda Overseas Branch Registrar should do so
before 4.00pm local time on 15 May 2026 in order to receive the
dividend.
Ordinary
shares may not be removed from or transferred to the Principal
Register in the UK, the Hong Kong Overseas Branch Register or the
Bermuda Overseas Branch Register on 15 May 2026. Any person wishing
to remove ordinary shares to or from each register must do so
before 4.00pm local time on 14 May 2026.
Transfers
of ADSs must be lodged with the depositary by 11.00am local time on
15 May 2026 in order to receive the dividend. ADS holders who
receive a cash dividend will be charged a fee, which will be
deducted by the depositary, of $0.005 per ADS per cash
dividend.
Dividend
on preference shares
A
quarterly dividend of £0.01 per Series A sterling preference
share is payable on 16 March, 15 June, 15 September and
15 December 2026 for the quarter then ended at the sole and
absolute discretion of the Board of HSBC Holdings plc. Accordingly,
the Board of HSBC Holdings plc has approved a quarterly dividend to
be payable on 15 June 2026 to holders of record on 29 May
2026.
For and
on behalf of
HSBC
Holdings plc
Angela McEntee
Group
Company Secretary
The
Board of Directors of HSBC Holdings plc as at the date of this
announcement comprises: Brendan Robert Nelson*, Georges Bahjat
Elhedery, Geraldine Joyce Buckingham†, Wei Sun
Christianson†, Rachel
Duan†, Dame Carolyn
Julie Fairbairn†, James Anthony
Forese†, Ann Frances
Godbehere†, Steven Craig
Guggenheimer†, Manveen (Pam)
Kaur, Dr José Antonio Meade Kuribreña†, Kalpana
Jaisingh Morparia†, Eileen K
Murray† and Swee Lian
Teo†.
*
Independent non-executive Chairman
†
Independent non-executive Director
Cautionary statement regarding forward-looking
statements
This
Earnings Release 1Q26 contains certain forward-looking statements
with respect to HSBC’s financial condition; results of
operations and business, including the strategic priorities;
financial, investment and capital targets; and environmental,
social and governance (‘ESG’) ambitions, targets and
commitments described herein.
Statements
that are not historical facts, including statements about
HSBC’s beliefs and expectations, are forward-looking
statements. Words such as ’may‘, ’will‘,
’should‘, ‘expects‘, ‘targets’,
’anticipates‘, ‘intends’,
’plans‘, ‘believes’, ’seeks‘,
‘estimates’, ’potential‘ and
‘reasonably possible’, or the negative thereof, other
variations thereon or similar expressions are intended to identify
forward-looking statements. These statements are based on current
plans, information, data, estimates and projections, and therefore
undue reliance should not be placed on them. Forward-looking
statements speak only as of the date they are made. HSBC makes no
commitment to revise or update any forward-looking statements to
reflect events or circumstances occurring or existing after the
date of any forward-looking statements. Written and/or oral
forward-looking statements may also be made in the periodic reports
to the US Securities and Exchange Commission, summary financial
statements to shareholders, offering circulars and prospectuses,
press releases and other written materials, and in oral statements
made by HSBC’s directors, officers or employees to third
parties, including financial analysts. Forward-looking statements
involve inherent risks and uncertainties. Readers are cautioned
that a number of factors could cause actual results to differ, in
some instances materially, from those anticipated or implied in any
forward-looking statement. These include, but are not limited
to:
-
changes in general
economic conditions in the markets in which we operate, such as
new, continuing or deepening recessions, prolonged inflationary
pressures and fluctuations in employment levels and the
creditworthiness of customers beyond those factored into consensus
forecasts; the Russia-Ukraine war, the conflict in the Middle East
that began on 28 February 2026, or any potential military action or
conflict elsewhere, and their impact on global economies and the
markets where HSBC operates, which could have a material adverse
effect on (among other things) our financial condition, results of
operations, prospects, liquidity, capital position and credit
ratings; deviations from the market and economic assumptions that
form the basis for our ECL measurements (including, without
limitation, as a result of the Russia-Ukraine war, the conflict in
the Middle East, or any potential military action or conflict
elsewhere, inflationary pressures, commodity price changes, and
ongoing developments in the commercial real estate sector and the
residential property sector in mainland China and Hong Kong);
potential changes in HSBC’s dividend policy; changes and
volatility in foreign exchange rates and interest rates levels,
including fluctuations in Hibor and the accounting impact resulting
from financial reporting in respect of hyperinflationary economies;
volatility in equity markets and the risk of disruptive correction
stemming from high company valuations; lack of liquidity in
wholesale funding or capital markets, which may affect our ability
to meet our obligations under financing facilities or to fund new
loans, investments and businesses; geopolitical tensions or
diplomatic developments producing social instability or legal
uncertainty, such as the Russia-Ukraine war, the conflict in the
Middle East, or any potential military action or conflict
elsewhere, and the related imposition of sanctions, export-control
and trade and investment restrictions, as well as increased market
volatility, supply chain restrictions and disruptions, sustained
increases in energy prices and key commodity prices, claims of
human rights violations, diplomatic tensions between China and the
US, which may extend to and involve other countries and
territories, and developments in Hong Kong and Taiwan and the
surrounding maritime region, alongside other potential areas of
tension, which may adversely affect HSBC by creating regulatory,
reputational and market risks; the efficacy of government,
customer, and HSBC’s actions in managing and mitigating
ESG-related risks, in particular climate risk, nature-related risks
and human rights risks, and in supporting the global transition to
net zero carbon emissions, each of which can impact HSBC both
directly and indirectly through our customers and which may result
in potential financial and non-financial impacts; illiquidity and
downward price pressure in national real estate markets; adverse
changes in central banks’ policies with respect to the
provision of liquidity support to financial markets; heightened
market concerns over sovereign creditworthiness in over-indebted
countries; adverse changes in the funding status of public or
private defined benefit pensions; the significant depreciation of
the US dollar through 2025, with volatility expected to persist;
societal shifts in customer financing and investment needs,
including consumer perception as to the continuing availability of
credit; exposure to counterparty risk, including third parties
using us as a conduit for illegal activities without our knowledge;
and price competition in the market segments we serve;
-
changes in
government policy and regulation, as well as monetary, fiscal,
interest rate and other policies of central banks and other
regulatory authorities in the major markets in which we operate and
the consequences thereof (including, without limitation, actions
taken as a result of changes in government following national
elections, higher social welfare commitments and increased
government expenditure on defence, energy security and climate
transition in the markets where the Group operates); continued
volatility in trade and tariff policies, changes in tariff rates,
including sector-specific levies imposed by various nations,
including the US, which could further disrupt supply chains and
reduce global trade growth; initiatives to change the size, scope
of activities and interconnectedness of financial institutions in
connection with the implementation of stricter regulation of
financial institutions in key markets worldwide; revised capital
and liquidity benchmarks, which could serve to deleverage bank
balance sheets and lower returns available from the current
business model and portfolio mix; changes to tax laws and tax rates
applicable to HSBC, including the imposition of levies or taxes
designed to change business mix and risk appetite; the practices,
pricing or responsibilities of financial institutions serving their
consumer markets; expropriation, nationalisation, confiscation of
assets and changes in legislation relating to foreign ownership;
the UK’s relationship with the EU, particularly with respect
to the potential divergence of UK and EU law on the regulation of
financial services; changes in government approach and regulatory
treatment in relation to ESG disclosures and reporting
requirements, and the current lack of a single standardised
regulatory approach to ESG across all sectors and markets; changes
in UK macroeconomic and fiscal policy, which may result in
fluctuations in the value of the pound sterling; general changes in
government policy (including, without limitation, actions taken as
a result of changes in government following national elections in
the markets where the Group operates) that may significantly
influence investor decisions; the costs, effects and outcomes of
regulatory reviews, actions or litigation, including any additional
compliance requirements; and the effects of competition in the
markets where we operate including increased competition from
non-bank financial services companies; and
-
factors specific to
HSBC, including our success in adequately identifying the risks we
face, such as the incidence of loan losses or delinquency, and
managing those risks (through account management, hedging and other
techniques); our ability to achieve our financial, investment,
capital and ESG ambitions, targets and commitments (including the
positions set forth in our thermal coal phase-out policy and our
energy policy and our targets to reduce our on-balance sheet
financed emissions and, where applicable, facilitated emissions in
our portfolio of selected high-emitting sectors), which may result
in our failure to achieve any of the expected outcomes of our
strategic priorities and may result in reputational risks; evolving
regulatory requirements and the development of new technologies,
including AI, affecting how we manage risk, including model risk;
model limitations or failure, including, without limitation, the
impact that high inflationary pressures and interest rates have had
on the performance and usage of financial models, which may require
us to hold additional capital, incur losses and/or use compensating
controls, such as judgemental post-model adjustments, to address
model limitations; changes to the judgements, estimates and
assumptions we base our financial statements on; changes in our
ability to meet the requirements of regulatory stress tests; a
reduction in the credit ratings assigned to us or any of our
subsidiaries, which could increase the cost or decrease the
availability of our funding and affect our liquidity position and
net interest margin; changes to the reliability and security of our
data management, data privacy, information and technology
infrastructure, including threats from cyber-attacks, which may
impact our ability to service clients and may result in financial
loss, business disruption and/or loss of customer services and
data; the accuracy and effective use of data, including internal
management information that may not have been independently
verified; changes in insurance customer behaviour and insurance
claim rates; our dependence on loan payments and dividends from
subsidiaries to meet our obligations; changes in our reporting
frameworks and accounting standards, which have had and may
continue to have a material impact on the way we prepare our
financial statements; our ability to successfully execute planned
strategic acquisitions and disposals; our success in adequately
integrating acquired businesses into our business; our ability to
successfully execute and implement the announced strategic
reorganisation of the Group; changes in our ability to manage
third-party, fraud, financial crime and reputational risks inherent
in our operations; employee misconduct, which may result in
regulatory sanctions and/or reputational or financial harm; changes
in skill requirements, ways of working and talent shortages, which
may affect our ability to recruit and retain senior management and
an inclusive and skilled workforce; and changes in our ability to
develop sustainable finance and ESG-related products consistent
with the evolving expectations of our regulators, and our capacity
to measure the environmental and social impacts from our financing
activity (including as a result of data limitations and changes in
methodologies), which may affect our ability to achieve our ESG
ambitions, targets and commitments, including our net zero
ambition, our targets to reduce on-balance sheet financed emissions
and, where applicable, facilitated emissions in our portfolio of
selected high-emitting sectors and the positions set forth in our
thermal coal phase-out policy and our energy policy, and increase
the risk of greenwashing. Effective risk management depends on,
among other things, our ability through stress testing and other
techniques to prepare for events that cannot be captured by the
statistical models it uses; our success in addressing operational,
legal and regulatory, and litigation challenges; and other risks
and uncertainties we identify in ‘Risk - Managing risk’
on page 34 of this Earnings Release 1Q26.
Additional
detailed information concerning important factors, including but
not limited to ESG-related factors, that could cause actual results
to differ materially from those anticipated or implied in any
forward-looking statement in this Earnings Release 1Q26 is
available in our Annual Report and Accounts for the fiscal year
ended 31 December 2025, which was filed with the SEC on Form 20-F
on 26 February 2026.
|
|
Investor relations/media relations contacts
For
further information contact:
|
Investor relations
|
|
Media relations
|
|
UK – Alastair Ryan
|
|
UK
– HSBC Group Press Office
|
|
Telephone: +44 (0)7468 703 010
|
|
Telephone:
+44 (0)20 7991 8096
|
|
Email: [email protected]
|
|
Email: [email protected]
|
|
|
|
|
|
Hong Kong – Yafei Tian
|
|
Hong Kong – Aman Ullah
|
|
Telephone: +852 2899 8909
|
|
Telephone: +852 3941 1120
|
|
Email: [email protected]
|
|
Email: [email protected]
|
|
|
|
|
Abbreviations
|
1Q25
|
First
quarter of 2025
|
|
1Q26
|
First quarter of 2026
|
|
2Q26
|
Second quarter of 2026
|
|
4Q25
|
Fourth
quarter of 2025
|
|
ADR
|
American
Depositary Receipt
|
|
ADS
|
American
Depositary Share
|
|
AI
|
Artificial
intelligence
|
|
AIEA
|
Average interest-earning assets
|
|
Banking
NII
|
Banking
net interest income
|
|
BoCom
|
Bank of
Communications Co., Limited, one of China’s largest
banks
|
|
BoE
|
Bank of
England
|
|
Bps
|
Basis points. One basis point is equal to one-hundredth of a
percentage point
|
|
CET1
|
Common equity tier 1
|
|
CIB
|
Corporate
and Institutional Banking, a business segment
|
|
CODM
|
Chief Operating Decision Maker
|
|
Corporate Centre
|
Corporate Centre comprises Central Treasury, our legacy businesses,
interests in our associates and joint ventures, central stewardship
costs and consolidation adjustments
|
|
CRE
|
Commercial
real estate
|
|
CSM
|
Contractual service margin
|
|
Dec
|
December
|
|
ECL
|
Expected credit losses. In the income statement, ECL is recorded as
a change in expected credit losses and other credit impairment
charges. In the balance sheet, ECL is recorded as an allowance for
financial instruments to which only the impairment requirements in
IFRS 9 are applied
|
|
ECM
|
Equity
capital markets
|
|
ESG
|
Environmental, social and governance
|
|
EU
|
European Union
|
|
FVOCI
|
Fair value through other comprehensive income
|
|
FX
|
Foreign
exchange
|
|
GAAP
|
Generally accepted accounting principles
|
|
GDP
|
Gross domestic product
|
|
GPS
|
Global
Payments Solutions
|
|
Group
|
HSBC Holdings together with its subsidiary
undertakings
|
|
GTS
|
Global
Trade Solutions
|
|
Hang
Seng Bank
|
Hang
Seng Bank Limited, one of Hong Kong's largest banks
|
|
Hibor
|
Hong
Kong interbank offered rate
|
|
Hong Kong
|
Hong
Kong Special Administrative Region of the People’s Republic
of China
|
|
HSBC
|
HSBC Holdings together with its subsidiary
undertakings
|
|
HSBC Bank plc
|
HSBC Bank plc, also known as the non-ring-fenced bank
|
|
HSBC Holdings
|
HSBC Holdings plc, the parent company of HSBC
|
|
HSBC UK
|
HSBC UK Bank plc, also known as the ring-fenced bank
|
|
IAS
|
International
Accounting Standards
|
|
Ibor
|
Interbank offered rate
|
|
IFRS
Accounting Standards
|
International
Financial Reporting Standards as issued by the International
Accounting Standards Board
|
|
IWPB
|
International
Wealth and Premier Banking, a business segment
|
|
LCR
|
Liquidity coverage ratio
|
|
Long term
|
For our
financial targets, we define long term as five to six years,
commencing 1 January 2026
|
|
LTV
|
Loan to
value
|
|
Mainland China
|
People’s Republic of China excluding Hong Kong and
Macau
|
|
Mar
|
March
|
|
Medium term
|
For our
financial targets, we define medium term as three to five years,
commencing 1 January 2026
|
|
Net operating income
|
Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as
revenue
|
|
NII
|
Net
interest income
|
|
NIM
|
Net interest margin
|
|
NNM
|
Net new
money
|
|
PD
|
Probability
of default
|
|
POCI
|
Purchased or originated credit-impaired financial
assets
|
|
PRA
|
Prudential Regulation Authority (UK)
|
|
Prudential
rules
|
Refers to the UK Capital Requirements Regulation, the PRA Rulebook
and any laws, regulations, requirements, rules, guidelines,
standards and policies relating to capital adequacy, leverage and
liquidity adopted by the relevant regulators, as applicable, and
which are applicable to HSBC
|
|
Revenue
|
Net
operating income before change in ECL
|
|
RoE
|
Return on average ordinary shareholders’ equity
|
|
RoTE
|
Return on average tangible equity
|
|
RWA
|
Risk-weighted asset
|
|
SAB
|
Saudi Awwal Bank, which was formed from the merger between The
Saudi British Bank and Alawwal Bank
|
|
UAE
|
United
Arab Emirates
|
|
UK
|
United
Kingdom
|
|
UK
Capital Requirements Regulation
|
Refers
to Regulation (EU) No. 575/2013, as amended or supplemented, as it
forms part of domestic law in the UK by virtue of the European
Union (Withdrawal) Act 2018, as amended
|
|
US
|
United
States of America
|
|
$m/$bn/$tn
|
United States dollar millions/billions/trillions. We report in US
dollars
|
Registered
office and Group head office: 8 Canada Square, London, E14 5HQ,
United Kingdom
Web:
www.hsbc.com
Incorporated
in England and Wales with limited liability. Registration number
617987
Click
on, or paste the following link into your web browser, to view the
associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/9920C_1-2026-5-5.pdf
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
HSBC
Holdings plc
|
|
|
|
|
|
|
By:
|
|
|
Name:
Angela McEntee
|
|
|
Title:
Group Company Secretary
|
|
|
|
|
|
Date:
05 May 2026
|
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