Form 6-K HSBC HOLDINGS PLC For: Oct 28
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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 October
HSBC Holdings plc
42nd
Floor, 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 3Q25
28 October 2025
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Georges Elhedery, Group CEO, said:
"We are becoming a simple, more agile, focused bank, built on our
core strengths. The intent with which we are executing our strategy
is reflected in our performance this quarter, despite taking legal
provisions related to historical matters. The positive progress we
are making gives us confidence in our ability to upgrade our
targets and we now expect 2025 RoTE excluding notable items to be
mid-teens, or better. We remain fully focused on helping our
customers navigate new economic realities, putting their changing
needs at the heart of everything we do."
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Financial performance in 3Q25
- Reported
profit before tax of $7.3bn was $1.2bn lower compared with
3Q24. The
reduction reflected an increase in operating expenses, mainly from
notable items in 3Q25, including legal provisions of $1.4bn. This
was partly offset by revenue growth, which included an increase in
banking net interest income ('banking NII') and a strong
performance in Wealth, while fee and other income fell in Global
Foreign Exchange and in Debt and Equity
Markets. Profit after
tax of $5.5bn was $1.2bn lower than in 3Q24.
- Constant
currency profit before tax excluding notable items was $9.1bn, an
increase of $0.3bn or 3% compared with 3Q24, as
revenue growth, driven by continued strong performance in Wealth,
was partly offset by a rise in operating expenses due to planned
investment and inflationary impacts.
- Annualised
return on average tangible equity ('RoTE') in 3Q25 was 12.3%,
compared with 15.5% in 3Q24. Excluding notable items, annualised
RoTE in 3Q25 was 16.4%, a
rise of 0.5 percentage points compared with
3Q24.
- Revenue
increased by $0.8bn or 5% to $17.8bn compared with
3Q24. There
was growth in fee and other income in Wealth in our International
Wealth and Premier Banking ('IWPB') and Hong Kong business
segments, supported by higher customer activity, while fee and
other income fell in Global Foreign Exchange and in Debt and Equity
Markets in our Corporate and Institutional Banking ('CIB') segment,
from reduced client activity amid lower market volatility. The
increase also reflected growth in banking
NII. Constant
currency revenue excluding notable items rose by $0.5bn to
$17.9bn.
- Net
interest income ('NII') of $8.8bn increased by $1.1bn or 15%
compared with 3Q24, which
included a benefit from the non-recurrence of a $0.3bn loss in 3Q24
on the early redemption of legacy securities. The rise also
reflected deposit growth and the benefit of our structural hedge,
partly offset by a reduction of $0.3bn due to the disposal of our
business in Argentina. The fall in interest rates reduced the
funding costs of the trading book compared with 3Q24 by $0.7bn,
resulting in an increase
in banking NII of
$0.5bn or 4% to $11.0bn.
- Net
interest margin ('NIM') of 1.57% increased by 11 basis points
('bps') compared with 3Q24, including
a benefit from the non-recurrence of a loss on the early redemption
of legacy securities in 3Q24, partly offset by the disposal of
our business in Argentina. NIM increased by 1bps compared with
2Q25, as a rise in NII was partly offset by an increase in average
interest-earning assets ('AIEA').
- Expected
credit losses ('ECL') of $1.0bn were stable compared with
3Q24. The
charge in 3Q25 primarily related to stage 3 charges on wholesale
exposures, including incremental charges related to the Hong Kong
commercial real estate ('CRE') sector, a charge against a Middle
Eastern exposure and charges against a small number of exposures in
our UK business. This was partly offset by releases due to a
stabilisation in the macroeconomic outlook during 3Q25. ECL in 3Q24
included charges against exposures in the onshore Hong Kong CRE and
mainland China CRE sectors.
- Operating
expenses of $10.1bn were $1.9bn or 24% higher compared with
3Q24. The
increase reflected notable items, including legal provisions of
$1.4bn on historical matters, comprising $1.1bn in connection with
developments in a claim in Luxembourg relating to the Madoff
securities fraud, and $0.3bn relating to certain historical trading
activities in HSBC Bank plc. Notable items also included
restructuring and other related costs associated with our
organisational simplification of $0.2bn. In addition, there was
higher planned spend and investment in technology and the impacts
of inflation. These increases were partly offset by the impact of
the disposal of our business in Argentina and the benefits of our
restructuring activities. Target basis
operating expenses were $8.4bn, $0.3bn or 3% higher than in
3Q24.
- Customer
lending balances increased by $1.2bn compared with
2Q25, including
adverse foreign currency translation differences. On a constant
currency basis, lending balances increased by $5.6bn, including
growth in commercial customer lending and mortgages in our UK
business and an increase in IWPB from Private Bank lending in Hong
Kong and Singapore, and mortgage balance growth in Singapore and
Australia.
- Customer
accounts increased by $18.6bn compared with
2Q25, including
adverse foreign currency translation differences. On a constant
currency basis, customer accounts increased by $25.5bn, driven by
growth in CIB in Asia, Europe, the UK, the Middle East and the
US.
- Common
equity tier 1 ('CET1') capital ratio of 14.5% decreased by 0.1
percentage points compared with 2Q25, driven
by a reduction in CET1 capital, which reflected the recognition of
$1.4bn of legal provisions in 3Q25, partly offset by a decrease in
risk-weighted assets ('RWAs'). The decrease in RWAs was mainly
driven by a reduction in market risk RWAs, and methodology and
policy changes in credit risk RWAs.
- The
Board has approved a third interim dividend for 2025 of $0.10 per
share. On
24 October, we completed the $3bn share buy-back announced at our
interim results on 30 July 2025.
Financial performance in 9M25
- Reported
profit before tax decreased by $6.9bn to $23.1bn compared with
9M24, mainly
due to an $8.2bn year-on-year impact of notable items, including
the non-recurrence of $3.6bn in net gains in 9M24 relating to our
disposals in Canada and Argentina, the recognition of dilution and
impairment losses in 9M25 of $2.1bn related to our associate Bank
of Communications Co., Limited ('BoCom'),
legal provisions of $1.4bn and restructuring and other
related costs associated with our organisational simplification of
$0.8bn in 9M25. Profit after
tax decreased by $6.5bn to $17.9bn compared with
9M24.
- Constant
currency profit before tax excluding notable items was $28.0bn, an
increase of $1.2bn or 4% compared with 9M24, as
higher revenue from growth in fee and other income in Wealth in our
IWPB and Hong Kong businesses, and from Foreign Exchange and Debt
and Equity Markets in our CIB business segment, mitigated a rise in
ECL and a planned increase in operating
expenses.
- Annualised
RoTE in 9M25 was 13.9%, compared with 19.3% in 9M24. Excluding
notable items, annualised RoTE in 9M25 was
17.6%, a
rise of 0.9 percentage points compared with
9M24.
- Revenue
decreased by $2.4bn or 4% to $51.9bn compared with
9M24, reflecting
the year-on-year impact of notable items, mainly from disposals in
Canada and Argentina in 9M24. Excluding notable items revenue
increased, primarily due to fee and other income growth in Wealth
and in Foreign Exchange and Debt and Equity Markets in
CIB. Constant
currency revenue excluding notable items rose by $2.4bn to $53.3bn
compared with 9M24.
- NII
of $25.6bn increased by $1.1bn compared with
9M24, including
an adverse impact of $1.5bn from business disposals in Argentina
and Canada, partly offset by the favourable impact of the
non-recurrence of a $0.3bn loss in 3Q24 on the early redemption of
legacy securities. NII growth was driven by the benefit of our
structural hedge, an increase in deposits and lower costs of
funding, which mitigated the impact of lower market interest rates.
The fall in interest rates reduced the funding costs of the trading
book by $1.5bn, which resulted in a fall in
banking NII of $0.4bn to $32.4bn.
- NIM
of 1.57% was
stable compared with 9M24, as improved margins in our
main markets were offset by the impact of the disposal of our
business in Argentina.
- ECL
were $2.9bn, an increase of $0.9bn compared with
9M24. The
increase included $0.6bn of higher charges related to the Hong Kong
CRE sector, which reflected higher allowances for new defaulted
exposures, the impact of an over-supply of non-residential
properties that has put continued downward pressure on rental and
capital values, and updates to our models used for ECL
calculations. The increase also included a charge against a Middle
Eastern exposure in the third quarter. In 9M24, the ECL charge
benefited from allowance releases, mainly in the UK, and from a
recovery relating to a single CIB client. Annualised ECL
charges were 40bps of average gross loans, including loans and
advances classified as held for sale.
- Operating
expenses increased by $2.7bn or 11% to $27.1bn compared with
9M24. The
increase primarily reflected notable items in 9M25, including legal
provisions of $1.4bn, restructuring and other related costs
associated with our organisational simplification of $0.8bn, and
$0.2bn related to strategic transactions. In addition, there was
higher planned spend and investment in technology and the impacts
of inflation. These increases were partly offset by reductions
related to our business disposals in Canada and Argentina, and the
benefits of our organisational
simplification. Target basis
operating expenses rose by $0.7bn or 3% compared with
9M24, primarily due to higher
spend and targeted investment in technology and the impacts of
inflation.
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Outlook
- We
expect to deliver a mid-teens or better RoTE for 2025, excluding
notable items. This
reflects sustained momentum in the earnings of our four businesses
into the third quarter and the positive progress we are making in
our strategic execution. Our guidance reflects a seasonally lower
RoTE in the fourth quarter, which includes historically lower
client activity in Wealth and certain cost items specific to the
fourth quarter (e.g. the UK bank levy). It also includes a higher
level of capital having announced our intention not to initiate
share buy-backs temporarily in the context of our proposal to
privatise Hang Seng Bank Limited ('Hang Seng
Bank').
- We
maintain confidence in our ability to deliver our mid-teens RoTE
target, excluding notable items for 2026 and
2027.
- We
now expect banking NII of $43bn or better in
2025, reflecting
increased confidence in the near-term trajectory for policy rates
in key markets, including in Hong Kong and the
UK.
- We
continue to expect ECL charges as a percentage of average gross
loans to be around 40bps in 2025 (including
loans held for sale balances).
- Target
basis operating expense growth in 2025 compared with 2024 remains
at approximately 3%, including
the impact of simplification-related saves associated with our
announced reorganisation.
- While
demand for lending remained muted in 9M25, we continue to
expect mid-single
digit percentage growth for year-on-year customer lending balances
over the medium to long term.
- We
continue to expect double-digit
percentage average annual growth in fee and other income in Wealth
over the medium term.
- We
maintain our medium-term CET1 capital ratio target range of
14%-14.5%. The
expected day one capital impact of the proposed transaction to
privatise Hang Seng Bank is a net reduction of approximately 125
basis points, which would arise following the approval of the
relevant resolutions by the requisite majority at each of the Hang
Seng Bank Court Meeting and the Hang Seng Bank General Meeting.
Having announced our intention not to initiate share buy-backs
temporarily, we expect CET1 capital to increase prior to completion
of the transaction, and while we may fall below our CET1 capital
target range on incurring the expected day one capital impact, we
expect to restore our CET1 capital ratio to within our target range
through a combination of organic capital generation and the impact
of not initiating share buy-backs. A decision to recommence
buy-backs will be subject to our normal buy-back considerations and
process on a quarterly basis. We maintain
our dividend payout ratio target basis of 50% for 2025, excluding
material notable items and related impacts.
u 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-October 2025) and rates of foreign
exchange, as well as customer behaviour and activity
levels.
u We do not reconcile our forward
guidance on RoTE excluding the impact of notable items, target
basis operating expenses, dividend payout ratio target basis or
banking NII to their equivalent reported
measures.
u See page 7 for
a further explanation of RoTE excluding notable items, banking NII,
target basis operating expenses and dividend payout ratio target
basis. For further information on our CET1 ratio, see
page 53.
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. The call will take place at
07.45am GMT. 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 $3.2tn at 30 September 2025, HSBC is one of
the world's largest banking and financial services
organisations.
Effective from 1 January 2025, the Group's operating segments
comprise of four new businesses along with Corporate
Centre:
- Hong
Kong
- UK
- Corporate
and Institutional Banking
- International
Wealth and Premier Banking
All segmental comparative data have been re-presented on this
basis.
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 30 September 2025 and the quarter ended
30 September 2024. Balance sheet comparisons, unless
otherwise stated, are between balances at 30 September 2025 and the
corresponding balances at 31 December 2024.
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 3Q25
is based is unaudited. It has been prepared in accordance with
our material accounting policies as described on pages 353 to
365 of the Annual Report and Accounts 2024.
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Proposal to privatise Hang Seng Bank Limited
On 9 October 2025, the Group announced that we have put forward a
conditional proposal to privatise Hang Seng Bank through a scheme
of arrangement. If approved and implemented, this would result in
The Hongkong and Shanghai Banking Corporation Limited acquiring all
of the remaining shares of Hang Seng Bank held by the minority
shareholders and the withdrawal of listing of the Hang Seng Bank
shares from the Hong Kong Stock Exchange. The expected day one
capital impact of the proposal is a net reduction of approximately
125 basis points, which would be recognised following the approval
of the relevant resolutions by the requisite majority at each of
the Hang Seng Bank Court Meeting and the Hang Seng Bank General
Meeting. Having announced our intention not to initiate any further
buy-backs for three quarters following the date of the announcement
relating to the transaction, we expect CET1 capital to increase
prior to completion of the transaction, which subject to Court
procedures and the satisfaction of related conditions, including
approval of the relevant resolutions by the requisite shareholder
majority, is expected in the first half of 2026. While our CET1
capital ratio may fall below our target operating range of
14.0%-14.5% on recognition of the day one capital impact, we expect
to restore our capital to within this range through a combination
of organic capital generation and the decision not to initiate
buy-backs. A decision to recommence buy-backs will be subject to
our normal buy-back considerations and process on a quarterly
basis.
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Reshaping the Group for growth
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 are on track to deliver on our cost commitments. During 9M25, we
incurred $0.8bn in costs in relation to our organisational
simplification, primarily related to severance. In this period, we
have identified and actioned annualised cost saves of approximately
$1bn, which resulted in a reduction of around $0.3bn in operating
expenses in the income statement in 9M25.
We are also focused on opportunities where we have a clear
competitive advantage and accretive returns, and we aim to redeploy
approximately $1.5bn of additional costs from non-strategic
activities into these areas over the medium term. So far in 2025,
we have announced 11 transactions, which are set to create
incremental investment capacity for growth. This includes two
transactions announced in the third quarter: the potential sale of
our majority shareholding in HSBC Bank Malta plc and the planned
sale of our Sri Lanka retail banking business, subject to works
council consultations and regulatory approvals, as relevant. We
have also commenced a strategic review of our Egypt retail banking
business alongside the previously announced targeted strategic
reviews of our retail businesses in Australia and Indonesia, which
remain underway and on which no decisions have been made. Our CIB
businesses in these markets are unaffected by these
reviews.
During the fourth quarter of 2025, we expect to recognise certain
key impacts from strategic transactions that will be classified as
material notable items and are excluded for the purpose of
computing our dividend payout ratio. These impacts include an
estimated $1.5bn loss on the recycling of the cumulative fair value
changes recognised through other comprehensive income to the income
statement on completion of the sale of our French retained
portfolio of home and certain other loans, which has no incremental
impact on CET1 capital. In addition, we expect to recognise an
estimated $0.3bn loss on the reclassification as held for sale of
our Malta business, an estimated $0.1bn loss on the recycling of
reserves associated with our French life insurance business on
completion, an estimated $0.1bn gain on the sale of our German
private banking business, which completed on 3 October 2025,
and an estimated $0.1bn gain on completion of the sale of our
Bahrain retail banking business.
u For further details on business
disposals, see page 16.
Our disciplined approach to capital allocation allows us to drive
investment into priority growth areas. This includes further
enhancing our Wholesale Transaction Banking capabilities, expanding
our international businesses and building our Wealth business,
particularly in Asia.
We also aim to continue to grow in our home markets in Hong Kong
and the UK, focusing on small and medium-size enterprises, digital
capabilities and improving our product proposition.
Transaction banking continued to perform well as we leverage our
network and capabilities to capture opportunities from changing
trade and capital flows. In 9M25, fee and other income in Wholesale
Transaction Banking performed strongly with growth of 4% compared
with 9M24, particularly from growth in Global Foreign
Exchange.
Wealth invested assets as at 30 September 2025, across all of our
business segments, were $1.5tn, an increase of 13% compared with
the same period last year. Within this we have attracted net new
invested assets of $73bn in the first nine months of 2025, with
$42bn booked in Asia. This compared with net new invested assets in
9M24 of $59bn, with $49bn booked in Asia.
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Financial summary
Key financial metrics
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Nine months ended
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Quarter ended
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30 Sep 2025
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30 Sep 2024
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30 Sep 2025
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30 Jun 2025
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30 Sep 2024
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Reported results
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|
|
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Profit before tax ($m)
|
23,105
|
30,032
|
7,295
|
6,326
|
8,476
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Profit after tax ($m)
|
17,944
|
24,414
|
5,503
|
4,871
|
6,749
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Net operating income before change in expected credit losses and
other credit impairment charges ('revenue') ($m)
|
51,910
|
54,290
|
17,788
|
16,473
|
16,998
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Cost efficiency ratio (%)
|
52.2
|
45.0
|
56.6
|
54.1
|
47.9
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Net interest margin (%)
|
1.57
|
1.57
|
1.57
|
1.56
|
1.46
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Basic earnings per share ($)
|
0.93
|
1.23
|
0.28
|
0.26
|
0.34
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Diluted earnings per share ($)
|
0.93
|
1.22
|
0.28
|
0.26
|
0.34
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Dividend per ordinary share (in respect of the period)
($)1
|
0.30
|
0.51
|
0.10
|
0.10
|
0.10
|
|
|
|
|
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Alternative performance measures
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|
|
|
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Constant currency profit before tax ($m)
|
23,105
|
30,064
|
7,295
|
6,320
|
8,573
|
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Constant currency revenue ($m)
|
51,910
|
54,229
|
17,788
|
16,561
|
17,172
|
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Constant currency banking net interest income ($m)
|
32,362
|
32,464
|
11,049
|
10,802
|
10,612
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Constant currency cost efficiency ratio (%)
|
52.2
|
45.0
|
56.6
|
54.3
|
47.8
|
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Constant currency profit before tax excluding notable items
($m)
|
28,031
|
26,825
|
9,103
|
9,185
|
8,818
|
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Constant currency revenue excluding notable items ($m)
|
53,297
|
50,873
|
17,900
|
17,751
|
17,380
|
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Constant currency profit before tax excluding notable items and
strategic transactions ($m)
|
28,031
|
26,496
|
9,103
|
9,185
|
8,809
|
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Constant currency revenue excluding notable items and strategic
transactions ($m)
|
53,297
|
49,909
|
17,900
|
17,751
|
17,238
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|
Expected credit losses and other credit impairment charges
(annualised) as a % of average gross loans and advances to
customers, including held for sale (%)
|
0.40
|
0.27
|
0.40
|
0.44
|
0.40
|
|
Basic earnings per share excluding material notable items and
related impacts ($)
|
1.14
|
1.02
|
0.36
|
0.39
|
0.34
|
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Return on average ordinary shareholders' equity (annualised)
(%)
|
12.9
|
17.9
|
11.3
|
10.7
|
14.4
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Return on average tangible equity (annualised) (%)
|
13.9
|
19.3
|
12.3
|
11.5
|
15.5
|
|
Return on average tangible equity excluding notable items
(annualised) (%)
|
17.6
|
16.7
|
16.4
|
17.7
|
15.9
|
|
Target basis operating expenses ($m)
|
24,559
|
23,865
|
8,380
|
8,338
|
8,099
|
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At
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30 Sep 2025
|
30 Jun 2025
|
31 Dec 2024
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Balance sheet
|
|
|
|
|
Total assets ($m)
|
3,234,223
|
3,214,371
|
3,017,048
|
|
Net loans and advances to customers ($m)
|
982,886
|
981,722
|
930,658
|
|
Constant currency net loans and advances to customers
($m)
|
982,886
|
977,241
|
970,354
|
|
Customer accounts ($m)
|
1,737,247
|
1,718,604
|
1,654,955
|
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Constant currency customer accounts ($m)
|
1,737,247
|
1,711,707
|
1,719,103
|
|
Average interest-earning assets, year to date ($m)
|
2,179,639
|
2,159,900
|
2,099,285
|
|
Loans and advances to customers as % of customer accounts
(%)
|
56.6
|
57.1
|
56.2
|
|
Total shareholders' equity ($m)
|
191,430
|
192,554
|
184,973
|
|
Tangible ordinary shareholders' equity ($m)
|
158,451
|
159,557
|
154,295
|
|
Net asset value per ordinary share at period end ($)
|
9.94
|
9.88
|
9.26
|
|
Tangible net asset value per ordinary share at period end
($)
|
9.22
|
9.17
|
8.61
|
|
Capital, leverage and liquidity
|
|
|
|
|
Common equity tier 1 capital ratio (%)2,3
|
14.5
|
14.6
|
14.9
|
|
Risk-weighted assets ($m)2,3
|
878,793
|
886,860
|
838,254
|
|
Total capital ratio (%)2,3
|
20.2
|
20.1
|
20.6
|
|
Leverage ratio (%)2,3
|
5.2
|
5.4
|
5.6
|
|
High-quality liquid assets (liquidity value)
($m)3,4
|
690,157
|
678,059
|
649,210
|
|
Liquidity coverage ratio (%)3,4
|
139
|
140
|
138
|
|
Share count
|
|
|
|
|
Period end basic number of $0.50 ordinary shares outstanding, after
deducting own shares held (millions)
|
17,183
|
17,397
|
17,918
|
|
Period end basic number of $0.50 ordinary shares outstanding and
dilutive potential ordinary shares, after deducting own shares held
(millions)
|
17,332
|
17,529
|
18,062
|
|
Average basic number of $0.50 ordinary shares outstanding, after
deducting own shares held (millions)
|
17,529
|
17,646
|
18,357
|
u For reconciliations of our
reported results to a constant currency basis, including lists of
notable items, see page 26.
Definitions and calculations of other alternative performance
measures are included in 'Alternative performance measures' on
page 38.
1 Dividend per share for the nine months
ended 30 September 2024 includes the special dividend of $0.21 per
ordinary share arising from the proceeds of the sale of our banking
business in Canada to Royal Bank of Canada.
2 Regulatory capital ratios and
requirements are based on the transitional arrangements of the
Capital Requirements Regulation in force at the time. Effective
1 January 2025, the IFRS 9 transitional arrangements came to
an end, followed by the end of the regulatory requirements of the
Capital Requirements Regulation and Directive, the CRR II
regulation and the PRA Rulebook ('CRR II') grandfathering
provisions on 28 June 2025.
3 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.
4 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 2025. 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
30 September 2025 are computed by retranslating into US dollars for
non-US dollar branches, subsidiaries, joint ventures and
associates:
- the
income statement for 9M24 at the average rate of exchange for
9M25;
- the
income statement for the quarterly periods at the average rate of
exchange for 3Q25;
- the
closing prior period balance sheets at the prevailing rates of
exchange on 30 September 2025.
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 are
excluded from our 'target basis dividend payout ratio' calculation
and 'earnings per share excluding
material notable items and related impacts' measure. Material
notable items in 9M25 or relevant comparative periods relate to the
operating expenses associated with actions to exit or wind down
non-strategic businesses. They also include a dilution loss and the
recognition of an impairment of our investment in BoCom, a legal
provision relating to developments in a claim in Luxembourg
relating to the Bernard L. Madoff Investment Securities LLC fraud,
as well as the impacts of transactions completed in previous
periods, including the sale of our retail banking operations in
France, the sale of our banking business in Canada and the disposal
of our business in Argentina.
u The tables on
pages 27 to 30 and
pages 33 to 37 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, 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.
We consider the monthly impact of distorting income statement
results when calculating the impact of strategic
transactions.
u See page 31 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.
We group certain products in a consistent manner across our
business segments. Wholesale transaction banking comprises our
Global Foreign Exchange, Global Payments Solutions ('GPS'), Global
Trade Solutions ('GTS') and Securities Services businesses. Wealth
comprises our Investment Distribution, Insurance, Private Bank
(formerly Global Private Banking) and Asset Management
businesses.
On page 9 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 a product grouping,
which is used to manage and assess our segmental
performance.
|
|
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 341
of the Annual Report and Accounts 2024.
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 above. Definitions and calculations of other
alternative performance measures are included in 'Alternative
performance measures' on page 38.
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. It also adjusts the 'average tangible
equity' for the post-tax impact of notable items in each period,
which remain as adjusting items for all relevant periods within
that calendar year.
u See page 38 for
the definition of return on average tangible equity excluding
notable items and page 39 for
the reconciliation to the GAAP measure.
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, see page 14.
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 as described above. 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.
u See page 39 for
the reconciliation to the GAAP measure.
Target basis operating expenses
Target basis operating expenses is computed by excluding the direct
cost impact of the disposals of our banking business in Canada and
our business in Argentina from the 2024 baseline. It 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.
u See page 41 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
2025. For the purposes of computing our dividend payout ratio
target basis, we exclude from earnings per share material notable
items and related impacts. Material notable items for the 'basic
earnings per share excluding material notable items and related
impacts' measure in 2025 and comparative periods are described
above.
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.
u See page 31 for
the supplementary analysis of the impact of strategic
transactions.
u See page 38 for
the definition of 'basic
earnings per share excluding material notable items and related
impacts' and
page 41 for
the reconciliation to the GAAP measure.
Summary consolidated income statement
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Net interest income
|
25,598
|
24,548
|
8,777
|
8,519
|
7,637
|
|
Net fee income
|
10,149
|
9,322
|
3,506
|
3,319
|
3,122
|
|
Net income from financial instruments held for trading or managed
on a fair value basis1
|
15,061
|
15,814
|
4,513
|
5,191
|
5,298
|
|
Net income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
9,556
|
7,889
|
4,443
|
3,592
|
5,513
|
|
Insurance finance expense
|
(9,541)
|
(7,948)
|
(4,212)
|
(3,773)
|
(5,462)
|
|
Insurance service result
|
1,386
|
1,001
|
601
|
438
|
339
|
|
(Losses)/gains recognised on sale of business
operations2
|
(181)
|
3,328
|
(147)
|
(36)
|
72
|
|
Other operating (expense)/income3
|
(118)
|
336
|
307
|
(777)
|
479
|
|
Net operating income before change in
expected credit losses and other credit impairment
charges4
|
51,910
|
54,290
|
17,788
|
16,473
|
16,998
|
|
Change in expected credit losses and other credit impairment
charges
|
(2,949)
|
(2,052)
|
(1,008)
|
(1,065)
|
(986)
|
|
Net operating income
|
48,961
|
52,238
|
16,780
|
15,408
|
16,012
|
|
Total operating expenses excluding amortisation and impairment of
intangible assets
|
(24,871)
|
(22,798)
|
(9,120)
|
(8,263)
|
(7,604)
|
|
Amortisation and impairment of intangible assets
|
(2,227)
|
(1,641)
|
(956)
|
(657)
|
(539)
|
|
Operating profit
|
21,863
|
27,799
|
6,704
|
6,488
|
7,869
|
|
Share of profit in associates and joint ventures
|
2,242
|
2,233
|
591
|
838
|
607
|
|
Impairment of interest in associate3
|
(1,000)
|
-
|
-
|
(1,000)
|
-
|
|
Profit before tax
|
23,105
|
30,032
|
7,295
|
6,326
|
8,476
|
|
Tax expense
|
(5,161)
|
(5,618)
|
(1,792)
|
(1,455)
|
(1,727)
|
|
Profit after tax
|
17,944
|
24,414
|
5,503
|
4,871
|
6,749
|
|
Attributable to:
|
|
|
|
|
|
|
- ordinary shareholders of the parent company
|
16,383
|
22,720
|
4,873
|
4,578
|
6,134
|
|
- other equity holders
|
958
|
908
|
411
|
155
|
382
|
|
- non-controlling interests
|
603
|
786
|
219
|
138
|
233
|
|
Profit after tax
|
17,944
|
24,414
|
5,503
|
4,871
|
6,749
|
|
|
$
|
$
|
$
|
$
|
$
|
|
Basic earnings per share
|
0.93
|
1.23
|
0.28
|
0.26
|
0.34
|
|
Diluted earnings per share
|
0.93
|
1.22
|
0.28
|
0.26
|
0.34
|
|
Dividend per ordinary share (paid in the period)5
|
0.56
|
0.51
|
0.10
|
0.46
|
0.10
|
|
|
%
|
%
|
%
|
%
|
%
|
|
Return on average ordinary shareholders' equity
(annualised)
|
12.9
|
17.9
|
11.3
|
10.7
|
14.4
|
|
Return on average tangible equity (annualised)
|
13.9
|
19.3
|
12.3
|
11.5
|
15.5
|
|
Cost efficiency ratio
|
52.2
|
45.0
|
56.6
|
54.1
|
47.9
|
1 For the nine months ended 30 September
2025, the amounts include a $0.1bn mark-to-market gain on interest
rate hedging of the portfolio of retained loans post sale of our
retail banking operations in France and a $0.1bn mark-to-market
loss on Grupo Financiero Galicia's ('Galicia') American Depositary
Receipts ('ADRs') received as purchase consideration from the sale
of our business in Argentina. For the nine months ended 30
September 2024, the amounts include a $255m gain on the foreign
exchange hedging of the proceeds from the sale of our banking
business in Canada.
2 For the nine months ended 30 September
2024, a gain of $4.6bn, inclusive of the recycling of $0.6bn in
foreign currency translation reserve losses and $0.4bn of other
reserves recycling losses but excluding the $255m gain on the
foreign exchange hedging (see footnote 1 above), on the sale of our
banking business in Canada, and an impairment loss of $1.2bn
relating to the sale of our business in Argentina were
recognised.
3 For the nine months ended 30 September
2025, the amounts in 'Other operating (expense)/income' include a
loss of $1.1bn inclusive of reserves recycling as a result of the
dilution of our shareholding in BoCom. We have also recognised a
$1.0bn impairment loss following an impairment test on the carrying
value of the Group's investment in BoCom in 'Impairment of interest
in associate'.
4 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
5 The $0.56 dividend paid during the
nine month period ended 30 September 2025 consisted of a fourth
interim dividend of $0.36 per ordinary share in respect of the
financial year ended 31 December 2024 paid in April 2025, and
first and second interim dividends of $0.10 per ordinary share in
respect of the financial year ended 31 December 2025 paid in June
2025 and September 2025, respectively.
|
|
Income statement results
3Q25 compared with 3Q24 - reported results
|
Movement in reported profit compared with 3Q24
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
17,788
|
16,998
|
790
|
5
|
(434)
|
|
- of which: net interest income
|
8,777
|
7,637
|
1,140
|
15
|
(264)
|
|
ECL
|
(1,008)
|
(986)
|
(22)
|
(2)
|
5
|
|
Operating expenses
|
(10,076)
|
(8,143)
|
(1,933)
|
(24)
|
113
|
|
Share of profit from associates and joint ventures
|
591
|
607
|
(16)
|
(3)
|
-
|
|
Profit before tax
|
7,295
|
8,476
|
(1,181)
|
(14)
|
(317)
|
|
Tax expense
|
(1,792)
|
(1,727)
|
(65)
|
(4)
|
|
|
Profit after tax
|
5,503
|
6,749
|
(1,246)
|
(18)
|
|
|
Revenue excluding notable items
|
17,900
|
17,209
|
691
|
4
|
|
|
Profit before tax excluding notable items
|
9,103
|
8,732
|
371
|
4
|
|
1 For details, see 'Strategic transactions
supplementary analysis' on page 31.
|
Supplementary management view of revenue
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
11,049
|
10,867
|
182
|
2
|
(296)
|
|
Fee and other income
|
6,851
|
6,342
|
509
|
8
|
80
|
|
- Wealth
|
2,681
|
2,060
|
621
|
30
|
(22)
|
|
- Wholesale Transaction Banking
|
2,608
|
2,674
|
(66)
|
(2)
|
(22)
|
|
- Other
|
1,562
|
1,608
|
(46)
|
(3)
|
124
|
|
Revenue excluding notable
items3
|
17,900
|
17,209
|
691
|
4
|
(216)
|
|
Notable items
|
(112)
|
(211)
|
99
|
(47)
|
(218)
|
|
Revenue
|
17,788
|
16,998
|
790
|
5
|
(434)
|
1 For details, see 'Strategic transactions
supplementary analysis' on page 31.
2 For a reconciliation of banking NII to
reported NII, see page 14.
Banking NII in our supplementary management view of revenue
excludes notable items, which were nil in 3Q25 (3Q24: $283m,
relating to the early redemption of legacy
securities).
3 For a reconciliation of reported revenue
to revenue excluding notable items, see page 39.
|
Notable items
|
||
|
|
Quarter ended
|
|
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
|
Revenue
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(144)
|
72
|
|
Dilution loss of interest in BoCom associate
|
32
|
-
|
|
Early redemption of legacy securities
|
-
|
(283)
|
|
Currency translation on revenue notable items
|
|
3
|
|
Operating expenses
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(118)
|
(48)
|
|
Restructuring and other related costs
|
(157)
|
3
|
|
Legal provisions1,2
|
(1,421)
|
-
|
|
Currency translation on operating expenses notable
items
|
|
8
|
1 During 3Q25, a $1.1bn provision was
recognised in connection with a claim brought by Herald Fund SPC in
the Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
2 During 3Q25, a $0.3bn provision was
recognised in connection with the French National Financial
Prosecutor investigation relating to the dividend withholding tax
treatment of certain historical trading activities in HSBC Bank
plc, which is at an advanced stage.
3Q25 compared with 3Q24 - constant currency basis
|
Movement in profit before tax compared with 3Q24 - on a constant
currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
17,788
|
17,172
|
616
|
4
|
(362)
|
|
ECL
|
(1,008)
|
(995)
|
(13)
|
(1)
|
3
|
|
Operating expenses
|
(10,076)
|
(8,211)
|
(1,865)
|
(23)
|
57
|
|
Share of profit from associates and joint ventures
|
591
|
607
|
(16)
|
(3)
|
-
|
|
Profit before tax
|
7,295
|
8,573
|
(1,278)
|
(15)
|
(302)
|
1 For details, see 'Strategic transactions
supplementary analysis' on page 31.
3Q25 compared with 3Q24 - performance commentary
Reported profit before tax of
$7.3bn was $1.2bn lower compared with 3Q24, reflecting the
recognition of legal provisions of $1.4bn in 3Q25 on historical
matters that are classified as notable items. This was partly
offset by revenue growth of $0.8bn or 5%, with strong performances
in fee and other income in Wealth in our IWPB and Hong Kong
business segments, while fee and other income fell in Global
Foreign Exchange and Debt and Equity Markets in
CIB.
Reported profit after tax of $5.5bn fell by 18% compared with
3Q24.
On a constant currency basis, profit before tax of $7.3bn was 15%
lower compared with 3Q24.
Reported revenue of
$17.8bn was $0.8bn or 5% higher than in 3Q24. The rise in revenue
was driven by higher fee and other income in Wealth, mainly from
strong performances in Insurance from a higher contractual service
margin ('CSM') release and favourable experience variances, and in
investment distribution supported by increased customer activity.
This was partly offset by a reduction in fee and other income in
Global Foreign Exchange of $0.1bn and in Debt and Equity Markets,
reflecting lower client activity due to market uncertainty on the
path of interest rates.
The increase in revenue included a net favourable movement in
notable items of $0.1bn. This included the non-recurrence of a
$0.3bn loss in 3Q24 on the early redemption of legacy securities,
and in 3Q25, a loss on the planned disposal of our UK life
insurance entity.
NII increased
by $1.1bn compared with 3Q24, which included a benefit from the
non-recurrence of a $0.3bn loss in 3Q24 on the early redemption of
legacy securities, classified as a notable item. The rise also
reflected deposit growth and the benefit of our structural hedge,
partly offset by a reduction of $0.3bn due to the disposal of our
business in Argentina. The fall in interest rates reduced the
funding costs of the trading book compared with 3Q24 by $0.7bn,
resulting in an increase in banking NII of $0.2bn to
$11.0bn.
On a constant currency basis, revenue increased by $0.6bn or 4%.
Banking NII rose by $0.4bn on a constant currency
basis.
Reported ECL of
$1.0bn were stable compared with 3Q24. The charge in 3Q25 primarily
related to stage 3 charges on wholesale exposures, including
incremental charges related to the Hong Kong CRE sector of $0.2bn,
a charge against a Middle Eastern exposure of $0.1bn and charges
against a small number of exposures in our UK business. This was
partly offset by releases due to a stabilisation in the
macroeconomic outlook during 3Q25. ECL in 3Q24 included charges
against exposures in the onshore Hong Kong CRE ($0.1bn) and
mainland China CRE ($0.1bn) sectors.
u 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 46 to 51.
Reported operating expenses of
$10.1bn were $1.9bn or 24% higher. The increase reflected notable
items in 3Q25, including legal provisions of $1.4bn on historical
matters, comprising $1.1bn in connection with developments in a
claim in Luxembourg relating to the Bernard L. Madoff Investment
Securities LLC fraud, and $0.3bn relating to certain historical
trading activities in HSBC Bank plc. Notable items also included
$0.2bn of restructuring and other related costs in 3Q25 related to
our organisational simplification, mainly severance costs. Reported
operating expenses growth also reflected higher planned spend and
investment in technology and the impacts of inflation. These
increases were partly offset by reductions following the completion
of the disposal of our business in Argentina, the benefits from our
restructuring activities and an adverse impact from foreign
currency translation differences of $0.1bn.
On a constant currency basis, operating expenses increased by
$1.9bn or 23%. Target basis operating expenses were $0.3bn or 3%
higher than in 3Q24.
Reported share of profit from associates and
joint ventures of $0.6bn was $16m or 3%
lower.
Tax expense in
3Q25 was a charge of $1.8bn, representing an effective tax rate of
24.6%. The effective tax rate for 3Q25 was increased by 4.4% due to
legal provisions on which no tax benefit is recorded. Tax expense
in 3Q24 was a charge of $1.7bn, representing an effective tax rate
of 20.4%.
On 28 October 2025, the Board announced a third interim dividend
for 2025 of $0.10 per ordinary share. For further details, see
page 56.
9M25 compared with 9M24 - reported results
|
Movement in reported profit compared with 9M24
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
51,910
|
54,290
|
(2,380)
|
(4)
|
(5,273)
|
|
- of which: net interest income
|
25,598
|
24,548
|
1,050
|
4
|
(1,485)
|
|
ECL
|
(2,949)
|
(2,052)
|
(897)
|
(44)
|
79
|
|
Operating expenses
|
(27,098)
|
(24,439)
|
(2,659)
|
(11)
|
511
|
|
Share of profit from associates and joint ventures
|
1,242
|
2,233
|
(991)
|
(44)
|
-
|
|
Profit before tax
|
23,105
|
30,032
|
(6,927)
|
(23)
|
(4,683)
|
|
Tax expense
|
(5,161)
|
(5,618)
|
457
|
8
|
|
|
Profit after tax
|
17,944
|
24,414
|
(6,470)
|
(27)
|
|
|
Revenue excluding notable items
|
53,297
|
50,930
|
2,367
|
5
|
|
|
Profit before tax excluding notable items
|
28,031
|
26,799
|
1,232
|
5
|
|
1 For details, see 'Strategic transactions
supplementary analysis' on page 31.
|
Supplementary management view of revenue
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII2
|
32,362
|
33,071
|
(709)
|
(2)
|
(1,560)
|
|
Fee and other income
|
20,935
|
17,859
|
3,076
|
17
|
376
|
|
- Wealth
|
7,245
|
5,801
|
1,444
|
25
|
(107)
|
|
- Wholesale Transaction Banking
|
8,245
|
7,900
|
345
|
4
|
(157)
|
|
- Other
|
5,445
|
4,158
|
1,287
|
31
|
640
|
|
Revenue excluding notable
items3
|
53,297
|
50,930
|
2,367
|
5
|
(1,184)
|
|
Notable items
|
(1,387)
|
3,360
|
(4,747)
|
>(100)
|
(4,089)
|
|
Revenue
|
51,910
|
54,290
|
(2,380)
|
(4)
|
(5,273)
|
1 For details, see 'Strategic transactions
supplementary analysis' on page 31.
2 For a reconciliation of banking NII to
reported NII, see page 14.
Banking NII in our supplementary management view of revenue
excludes notable items, which were nil in 9M25 (9M24: $283m,
relating to the early redemption of legacy
securities).
3 For a reconciliation of reported revenue
to revenue excluding notable items, see page 39.
|
Notable items
|
||
|
|
Nine months ended
|
|
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
|
Revenue
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(283)
|
3,643
|
|
Dilution loss of interest in BoCom associate
|
(1,104)
|
-
|
|
Early redemption of legacy securities
|
-
|
(283)
|
|
Currency translation on revenue notable items
|
-
|
(4)
|
|
Operating expenses
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(345)
|
(149)
|
|
Restructuring and other related costs
|
(773)
|
22
|
|
Legal provisions1,2
|
(1,421)
|
-
|
|
Currency translation on operating expenses notable
items
|
-
|
11
|
|
Associates and joint ventures
|
|
|
|
Impairment losses of interest in BoCom associate
|
(1,000)
|
-
|
1 During 3Q25, a $1.1bn provision was
recognised in connection with a claim brought by Herald Fund SPC in
the Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
2 During 3Q25, a $0.3bn provision was
recognised in connection with the French National Financial
Prosecutor investigation relating to the dividend withholding tax
treatment of certain historical trading activities in HSBC Bank
plc, which is at an advanced stage.
9M25 compared with 9M24 - constant currency basis
|
Movement in profit before tax compared with 9M24 - on a constant
currency basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
51,910
|
54,229
|
(2,319)
|
(4)
|
(5,055)
|
|
ECL
|
(2,949)
|
(1,988)
|
(961)
|
(48)
|
67
|
|
Operating expenses
|
(27,098)
|
(24,403)
|
(2,695)
|
(11)
|
366
|
|
Share of profit from associates and joint ventures
|
1,242
|
2,226
|
(984)
|
(44)
|
-
|
|
Profit before tax
|
23,105
|
30,064
|
(6,959)
|
(23)
|
(4,622)
|
1 For details, see 'Strategic transactions
supplementary analysis' on page 31.
9M25 compared with 9M24 - performance commentary
Reported profit before tax of
$23.1bn was $6.9bn lower than in 9M24, primarily reflecting the
$8.2bn year-on-year impact of notable items. These included the
non-recurrence of $3.6bn in net gains in 9M24 relating to our
disposals in Canada and Argentina, the recognition of dilution and
impairment losses in 9M25 of $2.1bn related to our
associate BoCom,
legal provisions of $1.4bn and restructuring and other
related costs associated with our organisational simplification of
$0.8bn in 9M25.
On a constant currency basis, profit before tax of $23.1bn was
$7.0bn lower than in 9M24, while excluding notable items it
increased by $1.2bn or 4%.
Reported profit after tax of $17.9bn was $6.5bn or 27% lower
compared with 9M24.
Reported revenue of
$51.9bn was $2.4bn or 4% lower due to a net adverse movement in
notable items of $4.7bn, primarily relating to the non-recurrence
of net gains in 9M24 related to our disposals in Canada and
Argentina. It also included a dilution loss of $1.1bn following the
completion of BoCom's capital issuance in June 2025, which reduced
our interest from 19.03% to 16.00%.
Revenue excluding notable items increased by $2.4bn, primarily
reflecting higher fee and other income in Wealth and CIB, partly
offset by a reduction in banking NII. There was a strong
performance in Insurance, due to a higher CSM release and
favourable experience variances, and growth in our Private Bank and
investment distribution from higher customer activity. Fee and
other income rose in Wholesale Transaction Banking reflecting a
strong performance in the first half of 2025, particularly in
Global Foreign Exchange amid elevated market volatility, as well as
in Debt and Equity Markets.
NII increased
by $1.1bn compared with 9M24, including an adverse impact from
business disposals in Argentina and Canada of $1.5bn and an adverse
impact of foreign currency translation differences of $0.4bn.
Excluding these factors, NII increased due to the benefit of our
structural hedge, deposit growth and lower costs of funding, which
mitigated the impact of lower market interest rates. It also
included a benefit from the non-recurrence of a $0.3bn loss in 3Q24
on the early redemption of legacy securities, classified as a
notable item. The fall in interest rates reduced the funding costs
of the trading book, which resulted in a reduction in banking NII
of $0.4bn to $32.4bn.
On a constant currency basis, revenue decreased by $2.3bn or 4% and
banking NII fell by $0.1bn.
Reported ECL of
$2.9bn were $0.9bn or 44% higher than in 9M24. The charge in 9M25
included charges of $0.7bn related to the Hong Kong CRE sector,
which was $0.6bn higher than in 9M24. This reflected higher
allowances for new defaulted exposures, the impact of an
over-supply of non-residential properties that has put continued
downward pressure on rental and capital values, and updates to our
models used for ECL calculations. The 9M25 period also included a
charge against a single Middle Eastern exposure in the third
quarter.
In 9M24, the ECL charge benefited from allowance releases, mainly
in the UK, and from a recovery relating to a single CIB
client.
On a constant currency basis, ECL charges were $1.0bn higher than
in 9M24.
Reported operating expenses of
$27.1bn were $2.7bn or 11% higher. The increase primarily reflected
notable items in 9M25, including legal provisions of $1.4bn,
restructuring and other related costs in 9M25 of $0.8bn related to
our organisational simplification, mainly severance costs that are
classified as notable items, and $0.2bn related to strategic
transactions. In addition, growth in reported operating expenses
included higher planned spend and investment in technology, and the
impacts of inflation. These increases were partly offset by
reductions following the completion of business disposals in Canada
and Argentina, the benefits delivered by our restructuring
activities, and a favourable impact from foreign currency
translation differences of $36m.
On a constant currency basis, operating expenses increased by
$2.7bn or 11%. Target basis operating expenses were $0.7bn or 3%
higher than in 9M24 due to higher planned spend and investment in
technology and the impacts of inflation.
The number of employees expressed in full-time equivalent staff at
30 September 2025 was 212,409, an increase of 1,105 compared with
31 December 2024. The number of contractors at 30 September
2025 was 4,086, a decrease of 140 from 31 December
2024.
Reported share of profit from associates and joint
ventures less
impairment of $1.2bn was $1.0bn or 44% lower, primarily due to an
impairment loss of $1.0bn recognised on BoCom following our
value-in-use assessment made at 30 June 2025. This was partly
offset by an increase in the share of profit from Saudi Awwal Bank
('SAB').
Tax expense in
9M25 was a charge of $5.2bn, representing an effective tax rate of
22.3% (9M24: 18.7%). The effective tax rate for 9M25 was increased
by the non-deductible impairment and dilution loss in BoCom and
legal provisions on which no tax benefit is recorded. Excluding
these items, the effective rate for 9M25 was 19.9% (9M24: 21.1%,
excluding the impact of the non-taxable gains and losses on the
sale of our banking business in Canada and our business in
Argentina). The decrease in effective tax rate, excluding these
items from 9M24 to 9M25, was primarily the result of movements in
uncertain tax positions and prior year
adjustments.
Net interest income
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Interest income
|
73,369
|
82,627
|
24,361
|
24,595
|
27,255
|
|
Interest expense
|
(47,771)
|
(58,079)
|
(15,584)
|
(16,076)
|
(19,618)
|
|
Net interest income
|
25,598
|
24,548
|
8,777
|
8,519
|
7,637
|
|
Average interest-earning assets
|
2,179,639
|
2,094,585
|
2,218,472
|
2,195,244
|
2,088,100
|
|
|
%
|
%
|
%
|
%
|
%
|
|
Gross interest yield1
|
4.50
|
5.27
|
4.36
|
4.49
|
5.19
|
|
Less: gross interest payable1
|
(3.17)
|
(4.08)
|
(3.01)
|
(3.18)
|
(4.07)
|
|
Net interest spread2
|
1.33
|
1.19
|
1.35
|
1.31
|
1.12
|
|
Net interest margin3
|
1.57
|
1.57
|
1.57
|
1.56
|
1.46
|
1 Gross interest yield is the average
annualised interest rate earned on AIEA. 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
3Q25 of $8.8bn increased by $1.1bn or 15% compared with 3Q24, which
included a benefit from the non-recurrence of a $0.3bn loss in 3Q24
on the early redemption of legacy securities. The rise also
reflected deposit growth and the benefit of our structural hedge,
partly offset by a reduction of $0.3bn due to the disposal of our
business in Argentina.
NII in 3Q25 of $8.8bn was $0.3bn higher compared with 2Q25, driven
by deposit growth, the benefit of our structural hedge particularly
in HSBC UK, and foreign currency translation differences. This was
partly offset by increased costs to fund the trading book,
reflecting growth in the trading book.
NII in 9M25 of $25.6bn was $1.1bn higher compared with 9M24, which
included an adverse impact of $1.5bn from business disposals in
Canada and Argentina, partly offset by a favourable impact of the
non-recurrence of a $0.3bn loss in 9M24 on the early redemption of
legacy securities. NII growth was driven by the benefit of our
structural hedge, an increase in deposits and lower costs of
funding, which mitigated the impact of lower market interest
rates.
NIM for
3Q25 of 1.57% was 11bps higher compared with 3Q24, including the
benefit from the non-recurrence of the loss on early redemption of
legacy securities in 3Q24, offset by a reduction due to the
disposal of our business in Argentina. NIM was up 1bp in 3Q25
compared with 2Q25, reflecting deposit growth particularly in Asia
and the benefit of our structural hedge. NIM for 9M25 was 1.57%,
stable compared with 9M24, as improved margins in our main markets
were offset by the impact of the disposal of our business in
Argentina.
Interest income in
3Q25 of $24.4bn decreased by $0.2bn or 1% compared with 2Q25, and
by $2.9bn or 11% compared with 3Q24, due to the business disposals
referred to above and lower market interest rates. Excluding the
favourable effect of foreign currency translation differences,
interest income fell by $0.4bn compared with 2Q25, and by $3.1bn
compared with 3Q24.
Interest expense in
3Q25 of $15.6bn decreased by $0.5bn or 3% compared with 2Q25, and
by $4.0bn or 21% compared with 3Q24, due to the business disposals
referred to above and lower market interest rates. Excluding the
adverse effects of foreign currency translation differences,
interest expense fell by $0.6bn compared with 2Q25, and by $4.3bn
compared with 3Q24.
Banking net interest income
|
Banking
net interest income
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Net interest income
|
25,598
|
24,548
|
8,777
|
8,519
|
7,637
|
|
Banking book funding costs used to generate 'net income from
financial instruments held for trading or managed on a fair value
basis'
|
7,094
|
8,560
|
2,384
|
2,307
|
3,051
|
|
Third-party net interest income from insurance
|
(330)
|
(320)
|
(112)
|
(112)
|
(104)
|
|
Banking net interest income
|
32,362
|
32,788
|
11,049
|
10,714
|
10,584
|
|
Currency translation
|
|
(324)
|
|
88
|
28
|
|
Banking net interest income - on a constant currency
basis
|
32,362
|
32,464
|
11,049
|
10,802
|
10,612
|
|
Banking net interest income - on a reported basis
|
32,362
|
32,788
|
11,049
|
10,714
|
10,584
|
|
- of which:
|
|
|
|
|
|
|
The Hongkong and Shanghai Banking Corporation Limited
|
15,966
|
16,227
|
5,351
|
5,176
|
5,475
|
|
HSBC UK Bank plc
|
8,477
|
7,705
|
2,969
|
2,846
|
2,643
|
|
HSBC Bank plc
|
3,780
|
3,448
|
1,351
|
1,325
|
1,152
|
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 $32.4bn in 9M25, a reduction of $0.4bn or 1%
compared with 9M24, mainly due to a reduction of $1.6bn from the
disposals of our business in Argentina and our banking business in
Canada, and an adverse impact from foreign currency translation
differences of $0.3bn. Banking NII growth was driven by the benefit
of our structural hedge, deposit growth and lower costs of funding,
which mitigated the impact of lower market interest rates. Banking
NII also deducts third-party NII related to our Insurance business,
which was $0.3bn, broadly stable compared with 9M24. The funding
costs associated with generating trading and fair value income were
$7.1bn, a decrease of $1.5bn compared with 9M24, reflecting the
reduction in interest rates that offset a rise in trading book
balances.
The internally allocated funding to generate trading and fair value
income was approximately $236bn at 30 September 2025, a rise of
approximately $26bn since 30 September 2024, and up $28bn compared
with 30 June 2025. This relates to trading, fair value and
associated net asset balances predominantly in CIB.
Summary consolidated balance sheet
|
|
At
|
||
|
|
30 Sep 2025
|
30 Jun 2025
|
31 Dec 2024
|
|
|
$m
|
$m
|
$m
|
|
Assets
|
|
|
|
|
Cash and balances at central banks
|
246,821
|
246,360
|
267,674
|
|
Trading assets
|
357,418
|
333,745
|
314,842
|
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
134,408
|
128,942
|
115,769
|
|
Derivatives
|
213,903
|
249,672
|
268,637
|
|
Loans and advances to banks
|
105,202
|
107,582
|
102,039
|
|
Loans and advances to customers
|
982,886
|
981,722
|
930,658
|
|
Reverse repurchase agreements - non-trading
|
278,615
|
283,204
|
252,549
|
|
Financial investments
|
563,159
|
547,955
|
493,166
|
|
Assets held for sale
|
46,026
|
38,978
|
27,234
|
|
Other assets
|
305,785
|
296,211
|
244,480
|
|
Total assets
|
3,234,223
|
3,214,371
|
3,017,048
|
|
Liabilities
|
|
|
|
|
Deposits by banks
|
98,126
|
97,782
|
73,997
|
|
Customer accounts
|
1,737,247
|
1,718,604
|
1,654,955
|
|
Repurchase agreements - non-trading
|
215,308
|
195,532
|
180,880
|
|
Trading liabilities
|
73,182
|
70,653
|
65,982
|
|
Financial liabilities designated at fair value
|
162,914
|
163,589
|
138,727
|
|
Derivatives
|
217,438
|
257,601
|
264,448
|
|
Debt securities in issue
|
98,240
|
102,129
|
105,785
|
|
Insurance contract liabilities
|
120,169
|
118,297
|
107,629
|
|
Liabilities of disposal groups held for sale
|
52,616
|
46,165
|
29,011
|
|
Other liabilities
|
260,295
|
244,150
|
203,361
|
|
Total liabilities
|
3,035,535
|
3,014,502
|
2,824,775
|
|
Equity
|
|
|
|
|
Total shareholders' equity
|
191,430
|
192,554
|
184,973
|
|
Non-controlling interests
|
7,258
|
7,315
|
7,300
|
|
Total equity
|
198,688
|
199,869
|
192,273
|
|
Total liabilities and equity
|
3,234,223
|
3,214,371
|
3,017,048
|
|
Combined view of customer lending and customer
deposits
|
|||
|
|
At
|
||
|
|
30 Sep 2025
|
30 Jun 2025
|
31 Dec 2024
|
|
|
$m
|
$m
|
$m
|
|
Loans and advances to customers
|
982,886
|
981,722
|
930,658
|
|
Loans and advances to customers of disposal groups reported in
'Assets held for sale'
|
2,922
|
2,162
|
965
|
|
- private banking business in Germany
|
330
|
359
|
309
|
|
- Germany custody business
|
441
|
864
|
-
|
|
- business in South Africa
|
684
|
758
|
656
|
|
- retail banking business in Bahrain
|
172
|
181
|
-
|
|
- retail banking business in Sri Lanka
|
103
|
-
|
-
|
|
- business in Uruguay
|
1,192
|
-
|
-
|
|
Non-current assets held for sale
|
106
|
125
|
12
|
|
Combined customer lending
|
985,914
|
984,010
|
931,635
|
|
Currency translation
|
|
(4,459)
|
39,796
|
|
Combined customer lending at constant currency
|
985,914
|
979,551
|
971,431
|
|
Customer accounts
|
1,737,247
|
1,718,604
|
1,654,955
|
|
Customer accounts reported in 'Liabilities of disposal groups held
for sale'
|
18,562
|
19,088
|
5,399
|
|
- private banking business in Germany
|
1,522
|
2,662
|
2,085
|
|
- Germany custody business
|
12,277
|
12,392
|
-
|
|
- business in South Africa
|
2,077
|
3,210
|
3,294
|
|
- retail banking business in Bahrain
|
777
|
824
|
-
|
|
- retail banking business in Sri Lanka
|
467
|
-
|
-
|
|
- business in Uruguay
|
1,442
|
-
|
-
|
|
- other
|
-
|
-
|
20
|
|
Combined customer deposits
|
1,755,809
|
1,737,692
|
1,660,354
|
|
Currency translation
|
|
(6,800)
|
64,721
|
|
Combined customer deposits at constant currency
|
1,755,809
|
1,730,892
|
1,725,075
|
|
|
Balance sheet commentary
Balance sheet - 30 September 2025 compared with 30 June
2025
At 30 September 2025, our total assets of $3.2tn were $19.9bn
higher on a reported basis and included adverse effects of foreign
currency translation differences of $12.1bn. On a constant currency
basis, total assets were $31.9bn higher, as an increase in trading
assets and financial investments was partly offset by a decrease in
derivative assets.
Loans and advances to customers as a percentage of customer
accounts were 56.6%, compared with 57.1% at 30 June
2025.
Loans and advances to customers of
$983bn were $1.2bn higher on a reported basis. This included an
adverse effect of foreign currency translation differences of
$4.5bn. Excluding foreign currency translation differences,
customer lending balances increased by $5.6bn.
The following movements are on a constant currency
basis.
In our UK business, customer lending rose by $5.4bn, primarily
driven by growth in commercial customer lending and continued
growth in mortgage balances.
In IWPB, customer lending increased by $3.2bn, reflecting growth in
Private Bank lending in Hong Kong and Singapore, and mortgage
balances in Singapore and Australia.
In our Hong Kong business, customer lending decreased by $2.6bn.
This was driven by lower term and other lending balances,
reflecting muted commercial banking customer demand, which was
partly offset by growth in overdrafts and credit card
balances.
In CIB, customer lending was broadly stable, as lower term and
other lending in our entities in Hong Kong and the US was partly
offset by growth in overdraft balances in our main entity in the
UK.
Customer accounts of
$1,737bn increased by $18.6bn on a reported basis. This included
adverse effects of foreign currency translation differences of
$6.9bn. Excluding foreign currency translation differences,
customer accounts increased by $25.5bn.
The following movements are on a constant currency
basis.
In CIB, customer accounts increased by $25.4bn. This was driven by
growth in term deposits in our legal entities in Hong Kong and
mainland China, including an increase in balances relating to a
small number of clients, and from other savings accounts in
Singapore. There was also deposit growth in the UK, the Middle East
and the US.
Growth in our UK business of $3.4bn was offset by reductions in our
Hong Kong business of $2.7bn, and in IWPB of $0.6bn.
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 30 September 2025, we had recognised a pre-tax
cumulative unrealised loss reserve through other comprehensive
income of $1.9bn related to these hold-to-collect-and-sell
positions, excluding investments held in our insurance business.
This compared with an unrealised loss of $2.1bn at 30 June 2025,
and reflected a $0.2bn pre-tax gain in 3Q25, 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 30 September 2025,
the debt instruments within this portfolio had a cumulative
unrecognised loss of $0.9bn, representing a $0.5bn deterioration
during 3Q25.
Risk-weighted assets - 30 September 2025 compared with 30 June
2025
RWAs of $878.8bn have decreased by $8.1bn since 30 June 2025,
including a fall of $2.1bn from foreign currency translation
differences. The remaining $6.0bn decrease was mainly attributable
to reductions in stressed value at risk within market risk RWAs and
credit risk parameter refinements, predominantly in CIB and
Corporate Centre.
u For further details on RWAs, see
page 54.
|
|
Business disposals
We reported balances of $46.0bn in assets held for sale and $52.6bn
in liabilities held for sale at 30 September 2025. This is
inclusive of business disposal groups that met the held for sale
criteria, for which we reported balances of $45.6bn in assets and
$52.6bn in liabilities as held for sale at 30 September 2025. This
included reclassifications made in the third quarter of 2025 of
$8.5bn in assets and $8.5bn in liabilities, in respect of our UK
life insurance business, our business in Uruguay, our retail
banking business in Sri Lanka and our fund administration business
in Germany. We recognised an immaterial net loss on disposals
during the third quarter of 2025.
During the fourth quarter of 2025, we expect to recognise certain
key impacts from strategic transactions that will be classified as
material notable items and are excluded for the purpose of
computing our dividend payout ratio. These impacts include an
estimated $1.5bn loss on the recycling of the cumulative fair value
changes recognised through other comprehensive income to the income
statement on completion of the sale of our French retained
portfolio of home and certain other loans, which has no incremental
impact on CET1 capital. In addition, we expect to recognise an
estimated $0.3bn loss on the reclassification as held for sale of
our Malta business, an estimated $0.1bn loss on the recycling of
reserves associated with our French life insurance business on
completion, an estimated $0.1bn gain on the sale of our German
private banking business, which completed on 3 October 2025,
and an estimated $0.1bn gain on completion of the sale of our
Bahrain retail banking business.
Retained portfolio of home and certain other loans in
France
Following the sale of our retail banking operations on 1 January
2024, HSBC Continental Europe retained a portfolio of home and
certain other loans, with a carrying value of €7.1bn ($8.3bn)
at the time of sale. During the fourth quarter of 2024, we began
actively marketing the retained portfolio for sale. As a result, on
1 January 2025 we reclassified the portfolio to a
hold-to-collect-and-sell business model, measuring it at fair value
through other comprehensive income ('FVOCI'). In the fourth quarter
of 2024, we entered into non-qualifying economic hedges to hedge
interest rate risk on the portfolio and recognised a $0.1bn
mark-to-market gain in 'net income from financial instruments held
for trading or managed on a fair value basis' in 2025. The disposal
group met held for sale criteria in the second quarter of 2025,
with balances remaining classified as held for sale at 30 September
2025 of $6.0bn in loans.
On 18 July 2025, HSBC Continental Europe signed a memorandum of
understanding with a consortium comprising Rothesay Life plc and
CCF regarding the sale of the portfolio. Following the completion
of the requisite works council consultation processes, the parties
entered into a sale and purchase agreement on 16 October 2025. The
transaction is expected to complete in the fourth quarter of 2025,
when cumulative fair value losses recognised through other
comprehensive income on the remeasurement of the financial
instruments would recycle to the income statement. These stood at
$1.5bn at 30 September 2025.
Other business disposals
On 3 October 2025, HSBC Continental Europe completed the sale of
its private banking business in Germany to BNP Paribas. Prior to
completion, as at 30 September 2025, the balances that remained
classified as held for sale were $1.5bn in assets and $1.5bn in
liabilities. In the fourth quarter of 2025, we will recognise an
estimated pre-tax gain on disposal of $0.1bn.
On 24 September 2025, The Hongkong and Shanghai Banking Corporation
Limited, Sri Lanka branch, entered into a binding agreement to sell
its retail banking business to Nations Trust Bank PLC. The
transaction, which is subject to regulatory approvals, is expected
to complete in the first half of 2026, at which point an estimated
immaterial pre-tax gain on disposal will be
recognised.
On 16 September 2025, HSBC Continental Europe signed a put option
agreement with CrediaBank S.A. regarding the potential sale of its
majority shareholding of 70.03% in HSBC Bank Malta plc. The
potential transaction, which remains subject to a works council
consultation process and regulatory approvals, is expected to
complete in the second half of 2026. The potential sale is expected
to generate an estimated pre-tax loss on disposal of $0.4bn, which
we expect to recognise largely in the fourth quarter of 2025 upon
classification of the disposal group as held for sale.
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, with balances classified as held for sale
at 30 September 2025 of $2.1bn in assets and $1.9bn in liabilities
and the recognition of an immaterial loss on disposal. 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, with immaterial balances classified as held
for sale at 30 September 2025 in assets and liabilities. In August
2025, we obtained the necessary Competition Act approval.
Completion of the potential sale is subject to customary regulatory
approval and the conclusion of negotiations with the German works
council, and is expected to complete in the second half of 2026, at
which point an immaterial gain on disposal will be
recognised.
On 3 July 2025, HSBC Bank plc, a wholly-owned subsidiary of HSBC
Holdings plc, entered into a binding agreement to sell its UK life
insurance entity, HSBC Life (UK) Limited, to Chesnara plc. The
disposal group met the held for sale criteria, with balances
classified as held for sale at 30 September 2025 of $6.3bn in
assets and $6.1bn in liabilities and the recognition of a loss on
disposal of $0.1bn. The transaction, which is subject to regulatory
approval, is expected to complete in early 2026. Upon completion,
foreign currency translation reserve losses, which stood at $0.2bn
at 30 September 2025, will recycle to the income
statement.
On 27 June 2025, HSBC Continental Europe reached an agreement to
sell its custody business in Germany to BNP Paribas, subject to
customary regulatory and anti-trust approvals and the conclusion of
negotiations with the works council in Germany. Following these, it
is anticipated that the sale will be completed in a phased manner,
starting 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 30 September 2025 of $0.5bn in
assets and $12.4bn 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.
On 18 February 2025, HSBC Bank Middle East Limited, Bahrain branch,
entered into a binding agreement to transfer its retail banking
business in Bahrain to Bank of Bahrain and Kuwait B.S.C. The
transaction, which has received regulatory approval, is expected to
complete in the fourth quarter of 2025. The sale is expected to
generate an estimated pre-tax gain on disposal of $0.1bn, which
will be recognised on completion.
On 20 December 2024, HSBC Continental Europe signed a memorandum of
understanding for the planned sale of its French life insurance
business, HSBC Assurances Vie (France), to Matmut Société
d'Assurance Mutuelle. The Share Sale Agreement for the transaction
was signed on 21 March 2025 following completion of all relevant
employee information and consultation processes. The transaction,
which has received regulatory approvals, is expected to complete in
the fourth quarter of 2025. The disposal group met held for sale
criteria in the fourth quarter of 2024, with balances remaining
classified as held for sale at 30 September 2025 of $28.2bn in
assets and $27.2bn in liabilities. The transaction is estimated to
generate a pre-tax loss of $0.2bn inclusive of migration costs and
the recycling of related reserves. The transaction is structured on
the basis of a price fixed on the reference date of 30 June 2024.
Between this date and completion the loss on disposal will be
adjusted for changes in the net asset value, including the entity's
earnings, which will continue to be consolidated into the Group's
results until disposal.
On 25 September 2024, HSBC reached an agreement to transfer its
business in South Africa to local lender FirstRand Bank Ltd. The
disposal group met held for sale criteria in the fourth quarter of
2024, with balances remaining classified as held for sale at 30
September 2025 of $0.7bn in assets and $2.1bn in liabilities. The
transaction, which has received regulatory and governmental
approvals, is expected to complete in the first quarter of 2026.
Upon subsequent wind-down of the entity, expected in 2026,
cumulative foreign currency translation reserves and other reserves
will recycle to the income statement. At 30 September 2025, foreign
currency translation reserve and other reserve losses stood at
$0.2bn.
|
|
Events after the balance sheet date
On 3 October 2025, HSBC Continental Europe completed the sale of
its private banking business in Germany to BNP Paribas. At
30 September 2025, the balances classified as held for sale
were $1.5bn in assets and $1.5bn in liabilities. In the fourth
quarter of 2025, we will recognise an estimated pre-tax gain on
disposal of $0.1bn.
On 9 October 2025, the Group announced that we have put forward a
conditional proposal to privatise Hang Seng Bank through a scheme
of arrangement. If approved and implemented, this would result in
The Hongkong and Shanghai Banking Corporation Limited acquiring all
of the remaining shares of Hang Seng Bank held by the minority
shareholders, and the withdrawal of the listing of Hang Seng Bank
shares from the Hong Kong Stock Exchange. On approval, a financial
liability would be recognised in the Group's consolidated financial
statements for the present value of the proposed HK$106.1bn
($13.7bn) purchase consideration, and a corresponding adjustment to
equity, net of derecognising the non-controlling interest - which
stood at $6.8bn as at 30 September 2025 - would also be
recognised.
In a 2009 lawsuit in Luxembourg relating to the Bernard L. Madoff
Investment Securities LLC fraud, HSBC Securities Services
Luxembourg ('HSSL') is defending a claim brought by Herald Fund SPC
('Herald') for restitution of securities and cash. For prior
disclosure on this matter, please refer to page 98 of the HSBC
Holdings plc 2025 Interim Report. On 24 October 2025, the
Luxembourg Court of Cassation denied HSSL's appeal in respect of
Herald's securities restitution claim, but accepted HSSL's appeal
in respect of Herald's cash restitution claim. HSSL will now pursue
a second appeal before the Luxembourg Court of Appeal. If HSSL is
unsuccessful in that second appeal, it will contest the amount HSSL
is required to pay in subsequent proceedings before the Court of
Appeal. Following this development, we recognised a $1.1bn
provision, as an adjusting post-balance sheet event, in our
consolidated financial results for the third quarter of 2025, an
impact of around 15 basis points on the Group's CET1 capital ratio.
Given the pendency of the second appeal and the complexities and
uncertainties associated with determining the quantum of
restitution, the eventual financial impact could be significantly
different. The provision was classified as a material notable item
and will not impact 2025 RoTE excluding notable items or any
dividend.
|
|
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 6.
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 26.
Supplementary reconciliations of constant currency to reported
results by business segment are presented on
pages 27 to 32 for
information purposes.
|
|
Hong Kong - constant currency basis
9M25 compared with 9M24
|
Results - on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
11,812
|
11,228
|
584
|
5
|
-
|
|
ECL
|
(1,168)
|
(721)
|
(447)
|
(62)
|
-
|
|
Operating expenses
|
(3,519)
|
(3,539)
|
20
|
1
|
-
|
|
Share of profit/(loss) from associates and joint
ventures
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
7,125
|
6,968
|
157
|
2
|
-
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions4
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
8,809
|
8,935
|
(126)
|
(1)
|
-
|
|
Fee and other income
|
3,003
|
2,293
|
710
|
31
|
-
|
|
- Retail Banking and Wealth
|
2,110
|
1,439
|
671
|
47
|
-
|
|
- Retail Banking
|
260
|
238
|
22
|
9
|
-
|
|
- Wealth
|
1,747
|
1,161
|
586
|
50
|
-
|
|
- Other2
|
103
|
40
|
63
|
>100
|
|
|
- Commercial Banking
|
893
|
854
|
39
|
5
|
-
|
|
- Wholesale Transaction Banking
|
548
|
529
|
19
|
4
|
-
|
|
- Credit and Lending
|
60
|
65
|
(5)
|
(8)
|
-
|
|
- Other2
|
285
|
260
|
25
|
10
|
-
|
|
Revenue excluding notable items
|
11,812
|
11,228
|
584
|
5
|
-
|
|
Notable items
|
-
|
-
|
-
|
n/a
|
-
|
|
Revenue
|
11,812
|
11,228
|
584
|
5
|
-
|
|
RoTE (annualised)3 (%)
|
34.5
|
37.3
|
|
|
|
|
RoTE excluding notable items (annualised)3 (%)
|
34.5
|
37.3
|
|
|
|
1 For a description of how we derive
banking NII, see page 14.
In the Hong Kong business, there are no adjustments to NII to
derive banking NII.
2 Includes revenue from Markets Treasury.
It also includes other non-product-specific income and notional tax
credits.
3 For details of our RoTE calculation by
business segment, see page 40.
4 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $7.1bn increased by $0.2bn or 2% compared with
9M24 on a constant currency basis.
Revenue of $11.8bn was $0.6bn or 5% higher on a constant currency
basis.
Banking NII of $8.8bn decreased by $0.1bn or 1%. The decrease was
due to the impact of lower margins, including a reduction due to
lower Hong Kong interbank offered rates ('HIBOR') during the second
and third quarters of 2025 relative to 9M24, and from lower lending
balances. This was partly offset by deposit balance growth of $24bn
or 5% since 30 September 2024 and a lower cost of funding as
interest rates fell.
Fee and other income of $3.0bn grew by $0.7bn or 31%, primarily
reflecting an increase of $0.6bn or 50% in Wealth from a strong
performance in investment distribution due to higher client
activity.
ECL of $1.2bn in 9M25 increased by $0.4bn compared with 9M24 on a
constant currency basis, including charges in both periods related
to the Hong Kong CRE sector. In 9M25, the increased charge in this
sector reflected higher allowances for new defaulted exposures, the
impact of an over-supply of non-residential properties that has put
continued downward pressure on rental and capital values, and
updates to our models used for ECL calculations.
Operating expenses of $3.5bn were $20m lower on a constant currency
basis, reflecting the impact of lower operations costs. This was
broadly offset by increases reflecting higher planned spend on
technology, including the development of our Wealth proposition,
and the impact of inflation.
3Q25 compared with 3Q24
|
Results - on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
3,964
|
3,796
|
168
|
4
|
-
|
|
ECL
|
(304)
|
(383)
|
79
|
21
|
-
|
|
Operating expenses
|
(1,209)
|
(1,199)
|
(10)
|
(1)
|
-
|
|
Share of profit/(loss) from associates and joint
ventures
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
2,451
|
2,214
|
237
|
11
|
-
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions3
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
2,934
|
3,006
|
(72)
|
(2)
|
-
|
|
Fee and other income
|
1,030
|
790
|
240
|
30
|
-
|
|
- Retail Banking and Wealth
|
748
|
500
|
248
|
50
|
-
|
|
- Retail Banking
|
84
|
83
|
1
|
1
|
-
|
|
- Wealth
|
646
|
401
|
245
|
61
|
-
|
|
- Other2
|
18
|
16
|
2
|
13
|
|
|
- Commercial Banking
|
282
|
290
|
(8)
|
(3)
|
-
|
|
- Wholesale Transaction Banking
|
187
|
183
|
4
|
2
|
-
|
|
- Credit and Lending
|
17
|
21
|
(4)
|
(19)
|
-
|
|
- Other2
|
78
|
86
|
(8)
|
(9)
|
-
|
|
Revenue excluding notable items
|
3,964
|
3,796
|
168
|
4
|
-
|
|
Notable items
|
-
|
-
|
-
|
n/a
|
-
|
|
Revenue
|
3,964
|
3,796
|
168
|
4
|
-
|
1 For a description of how we derive
banking NII, see page 14.
In the Hong Kong business, there are no adjustments to NII to
derive banking NII.
2 Includes revenue from Markets Treasury.
It also includes other non-product-specific income and notional tax
credits.
3 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $2.5bn was $0.2bn or 11% higher than in 3Q24
on a constant currency basis, primarily due an increase in revenue
of $0.2bn, driven by growth in fee and other income from Wealth
reflecting higher client activity, partly offset by a fall in
banking NII of $0.1bn. In addition, ECL charges fell by
$0.1bn on
a constant currency basis.
|
|
UK - constant currency basis
9M25 compared with 9M24
|
Results - on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
9,569
|
9,159
|
410
|
4
|
-
|
|
ECL
|
(594)
|
(238)
|
(356)
|
>(100)
|
-
|
|
Operating expenses
|
(4,052)
|
(3,665)
|
(387)
|
(11)
|
(3)
|
|
Share of profit/(loss) from associates and joint
ventures
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
4,923
|
5,256
|
(333)
|
(6)
|
(3)
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions4
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
8,161
|
7,687
|
474
|
6
|
-
|
|
Fee and other income
|
1,408
|
1,472
|
(64)
|
(4)
|
-
|
|
- Retail Banking and Wealth
|
489
|
558
|
(69)
|
(12)
|
-
|
|
- Retail Banking
|
204
|
188
|
16
|
9
|
-
|
|
- Wealth
|
269
|
311
|
(42)
|
(14)
|
-
|
|
- Other2
|
16
|
59
|
(43)
|
(73)
|
-
|
|
- Commercial Banking
|
919
|
914
|
5
|
1
|
-
|
|
- Wholesale Transaction Banking
|
667
|
684
|
(17)
|
(2)
|
-
|
|
- Credit and Lending
|
176
|
159
|
17
|
11
|
-
|
|
- Other2
|
76
|
71
|
5
|
7
|
-
|
|
Revenue excluding notable items
|
9,569
|
9,159
|
410
|
4
|
-
|
|
Notable items
|
-
|
-
|
-
|
n/a
|
-
|
|
Revenue
|
9,569
|
9,159
|
410
|
4
|
-
|
|
RoTE (annualised)3 (%)
|
23.1
|
26.1
|
|
|
|
|
RoTE excluding notable items (annualised)3 (%)
|
23.3
|
26.7
|
|
|
|
1 For a description of how we derive
banking NII, see page 14.
In the UK business, there are no adjustments to NII to derive
banking NII.
2 Includes revenue from Markets Treasury.
It also includes other non-product-specific income, gains/(losses)
on property disposals and notional tax credits.
3 For details of our RoTE calculation by
business segment, see page 40.
4 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $4.9bn was $0.3bn or 6% lower than in 9M24 on
a constant currency basis.
Revenue of $9.6bn was $0.4bn or 4% higher on a constant currency
basis.
Banking NII of $8.2bn increased by $0.5bn or 6%, driven by the
continued benefit of our structural hedge. It also reflected higher
lending balances across mortgages and corporate lending and growth
in deposits, in line with the increase in the overall market size,
which mitigated reductions in interest rates and margin compression
on mortgages.
Fee and other income of $1.4bn fell by $0.1bn or 4% due to lower
fees on foreign exchange transactions in Retail Banking and
Wealth.
ECL of $0.6bn in 9M25 increased by $0.4bn compared with 9M24 on a
constant currency basis. The increase mainly reflected a more
normalised level of ECL in 9M25 and the non-recurrence of allowance
releases in 9M24.
Operating expenses of $4.1bn increased by $0.4bn or 11% on a
constant currency basis. The increase primarily reflected higher
planned investment spend in technology, including on operational
resilience, and an increase in restructuring and other related
costs. This was partly mitigated by continued cost
discipline.
3Q25 compared with 3Q24
|
Results - on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
3,341
|
3,165
|
176
|
6
|
-
|
|
ECL
|
(271)
|
(180)
|
(91)
|
(51)
|
-
|
|
Operating expenses
|
(1,428)
|
(1,262)
|
(166)
|
(13)
|
-
|
|
Share of profit/(loss) from associates and joint
ventures
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
1,642
|
1,723
|
(81)
|
(5)
|
-
|
1
Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions
supplementary analysis' on page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions3
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
2,855
|
2,661
|
194
|
7
|
-
|
|
Fee and other income
|
486
|
504
|
(18)
|
(4)
|
-
|
|
- Retail Banking and Wealth
|
173
|
204
|
(31)
|
(15)
|
-
|
|
- Retail Banking
|
70
|
68
|
2
|
3
|
-
|
|
- Wealth
|
94
|
107
|
(13)
|
(12)
|
-
|
|
- Other2
|
9
|
29
|
(20)
|
(69)
|
-
|
|
- Commercial Banking
|
313
|
300
|
13
|
4
|
-
|
|
- Wholesale Transaction Banking
|
223
|
235
|
(12)
|
(5)
|
-
|
|
- Credit and Lending
|
65
|
56
|
9
|
16
|
-
|
|
- Other2
|
25
|
9
|
16
|
>100
|
-
|
|
Revenue excluding notable items
|
3,341
|
3,165
|
176
|
6
|
-
|
|
Notable items
|
-
|
-
|
-
|
n/a
|
-
|
|
Revenue
|
3,341
|
3,165
|
176
|
6
|
-
|
1 For a description of how we derive
banking NII, see page 14.
In the UK business, there are no adjustments to NII to derive
banking NII.
2 Includes revenue from Markets Treasury.
It also includes other non-product-specific income, gains/(losses)
on property disposals and notional tax credits.
3 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $1.6bn was $0.1bn or 5% lower than in 3Q24 on
a constant currency basis. The reduction was primarily due to an
increase in operating expenses of $0.2bn or 13% on a constant
currency basis, reflecting an inflationary impact and higher
planned investment spend, and higher ECL charges of $0.1bn relating
to the Commercial Banking portfolio. This was partly offset by an
increase in revenue of $0.2bn or 6% driven by an increase in
Banking NII of $0.2bn on a constant currency basis, reflecting the
benefit of our structural hedge and balance sheet growth, partly
offset by lower fee and other income.
|
|
Corporate and Institutional Banking - constant currency
basis
9M25 compared with 9M24
|
Results - on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
20,846
|
20,111
|
735
|
4
|
(575)
|
|
ECL
|
(463)
|
(337)
|
(126)
|
(37)
|
39
|
|
Operating expenses
|
(11,474)
|
(10,621)
|
(853)
|
(8)
|
64
|
|
Share of profit/(loss) from associates and joint
ventures
|
-
|
1
|
(1)
|
(100)
|
-
|
|
Profit before tax
|
8,909
|
9,154
|
(245)
|
(3)
|
(472)
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions4
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
10,725
|
10,900
|
(175)
|
(2)
|
(710)
|
|
Fee and other income
|
10,127
|
9,225
|
902
|
10
|
141
|
|
- Wholesale Transaction Banking
|
7,029
|
6,676
|
353
|
5
|
(127)
|
|
- Investment Banking
|
762
|
709
|
53
|
7
|
(3)
|
|
- Debt and Equity Markets
|
1,893
|
1,739
|
154
|
9
|
32
|
|
- Wholesale Credit and Lending
|
423
|
469
|
(46)
|
(10)
|
(51)
|
|
- Other2
|
20
|
(368)
|
388
|
>100
|
290
|
|
Revenue excluding notable items
|
20,852
|
20,125
|
727
|
4
|
(569)
|
|
Notable items
|
(6)
|
(14)
|
8
|
57
|
(6)
|
|
Revenue
|
20,846
|
20,111
|
735
|
4
|
(575)
|
|
RoTE (annualised)3 (%)
|
15.5
|
15.1
|
|
|
|
|
RoTE excluding notable items (annualised)3 (%)
|
16.8
|
15.2
|
|
|
|
1 For a description of how we derive
banking NII, see page 14.
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 9M25, this funding cost was
$7.1bn (9M24: $8.6bn).
2 Includes allocated revenue from Markets
Treasury and hyperinflationary impacts. It also includes notional
tax credits.
3 For details of our RoTE calculation by
business segment, see page 40.
4 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $8.9bn was $0.2bn or 3% lower than in 9M24 on
a constant currency basis.
Revenue of $20.8bn was $0.7bn or 4% higher on a constant currency
basis, including the adverse impact of the disposals of our
businesses in Canada and Argentina.
Banking NII of $10.7bn decreased by $0.2bn or 2%, mainly due to a
reduction of $0.7bn from business disposals. Banking NII reflected
the impact of lower interest rates in GPS, partly offset by a 5%
growth in average balances. Banking NII increased in GTS due to a
growth of 8% in average balances, mainly in our legal entities in
Asia following growth in client demand. There was also a rise in
other NII, in part from the benefit of our structural hedge on
capital held in the business.
Fee and other income of $10.1bn increased by $0.9bn or
10%.
- In
Wholesale Transaction Banking, fee and other income increased by
$0.4bn or 5%, mainly due to higher income in Global Foreign
Exchange from elevated market volatility in 9M25 and growth in
Securities Services, which benefited from higher asset
values.
- In
Debt and Equity Markets, fee and other income was up $0.2bn or 9%.
Growth in Debt Markets was driven by client demand for US dollar
structured note issuance due to higher interest rates. Equities
benefited from new client onboarding in prime finance and robust
institutional financing demand. Equity derivatives benefited from
the rise in market volatility due to macroeconomic
uncertainty.
- In
Other, fee and other income increased by $0.4bn, largely due to the
non-recurrence of adverse hyperinflationary impacts in
Argentina.
ECL of $0.5bn in 9M25 increased by $0.1bn compared with 9M24 on a
constant currency basis. The increase included a charge against a
single Middle Eastern exposure, which compared with releases in
9M24 relating to a single client in the UK.
Operating expenses of $11.5bn were $0.9bn or 8% higher than in 9M24
on a constant currency basis. The increase reflected the impact of
notable items including restructuring and other related costs, a
legal provision, and costs associated with the wind-down of our
M&A and equity capital markets ('ECM') activities in the UK,
Europe and the US, and impairments in Germany. It also reflected
higher planned spend and investment in technology, and inflationary
impacts. These increases were partly mitigated by cost reductions
from our organisational simplification and the impact of business
disposals in Canada and Argentina.
3Q25 compared with 3Q24
|
Results - on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
6,729
|
6,778
|
(49)
|
(1)
|
(79)
|
|
ECL
|
(164)
|
(161)
|
(3)
|
(2)
|
(4)
|
|
Operating expenses
|
(4,018)
|
(3,584)
|
(434)
|
(12)
|
40
|
|
Share of profit/(loss) from associates and joint
ventures
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
2,547
|
3,033
|
(486)
|
(16)
|
(43)
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions3
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
3,711
|
3,586
|
125
|
3
|
(108)
|
|
Fee and other income
|
3,024
|
3,192
|
(168)
|
(5)
|
35
|
|
- Wholesale Transaction Banking
|
2,198
|
2,286
|
(88)
|
(4)
|
(15)
|
|
- Investment Banking
|
220
|
237
|
(17)
|
(7)
|
-
|
|
- Debt and Equity Markets
|
371
|
586
|
(215)
|
(37)
|
2
|
|
- Wholesale Credit and Lending
|
145
|
165
|
(20)
|
(12)
|
(1)
|
|
- Other2
|
90
|
(82)
|
172
|
>100
|
49
|
|
Revenue excluding notable items
|
6,735
|
6,778
|
(43)
|
(1)
|
(73)
|
|
Notable items
|
(6)
|
-
|
(6)
|
n/a
|
(6)
|
|
Revenue
|
6,729
|
6,778
|
(49)
|
(1)
|
(79)
|
1 For a description of how we derive
banking NII, see page 14.
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 3Q25, this funding cost was
$2.4bn (3Q24: $3.1bn).
2 Includes allocated revenue from Markets
Treasury and hyperinflationary impacts. It also includes notional
tax credits.
3 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $2.5bn was $0.5bn or 16% lower than in 3Q24 on
a constant currency basis. Revenue was $49m or 1% lower on a
constant currency basis. Banking NII was $0.1bn higher, which was
more than offset by a fall in fee and other income of $0.2bn in the
context of a strong 3Q24, which benefited from higher levels of
volatility. The reduction was in Global Foreign Exchange due to a
challenging market environment, which included margin compression,
and in Debt and Equity Markets reflecting lower client activity due
to market uncertainty on the path of interest rates, and a higher
cost of funding related to trading activities, primarily on bullion
balances from higher market demand. These reductions were partly
offset by an increase in Markets Treasury allocations and the
non-recurrence of adverse hyperinflationary impacts in Argentina in
3Q24. ECL of $0.2bn were broadly stable compared with 3Q24 on a
constant currency basis, as a net release of charges in Asia
mitigated a charge against a single Middle Eastern exposure in
3Q25. Operating expenses were $0.4bn or 12% higher on a constant
currency basis, due to the impact of notable items, a legal
provision in 3Q25, costs associated with our restructuring
activities and costs to exit non-strategic businesses, primarily
the wind-down of our M&A and ECM businesses.
International Wealth and Premier Banking - constant currency
basis
9M25 compared with 9M24
|
Results - on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
10,834
|
10,578
|
256
|
2
|
(617)
|
|
ECL
|
(657)
|
(665)
|
8
|
1
|
27
|
|
Operating expenses
|
(6,819)
|
(6,490)
|
(329)
|
(5)
|
238
|
|
Share of profit/(loss) from associates and joint
ventures
|
26
|
41
|
(15)
|
(37)
|
-
|
|
Profit before tax
|
3,384
|
3,464
|
(80)
|
(2)
|
(351)
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
30 Sep 2025
|
30 Sep 2024
|
Variance
|
||
|
|
9M25 vs. 9M24
|
||||
|
|
|
of which strategic
transactions4
|
|||
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
5,225
|
5,801
|
(576)
|
(10)
|
(501)
|
|
Fee and other income
|
5,776
|
4,722
|
1,054
|
22
|
107
|
|
- Retail Banking
|
483
|
583
|
(100)
|
(17)
|
(34)
|
|
- Wealth
|
5,228
|
4,333
|
895
|
21
|
(90)
|
|
- Other2
|
65
|
(194)
|
259
|
>100
|
231
|
|
Revenue excluding notable items
|
11,001
|
10,523
|
478
|
5
|
(394)
|
|
Notable items
|
(167)
|
55
|
(222)
|
>(100)
|
(223)
|
|
Revenue
|
10,834
|
10,578
|
256
|
2
|
(617)
|
|
RoTE (annualised)3 (%)
|
17.8
|
18.2
|
|
|
|
|
RoTE excluding notable items (annualised)3 (%)
|
19.7
|
17.8
|
|
|
|
1 For a description of how we derive
banking NII, see page 14.
Banking NII in IWPB is computed by deducting third-party NII in our
insurance business from total IWPB NII, which was $0.3bn in 9M25
(9M24: $0.3bn). Total Insurance NII is presented in 'fee and other
income' in Wealth.
2 Includes allocated revenue from Markets
Treasury and hyperinflationary impacts. It also includes other
non-product-specific income.
3 For details of our RoTE calculation by
business segment, see page 40.
4 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $3.4bn was $0.1bn lower than in 9M24 on a
constant currency basis, due to the impact of strategic
transactions of $0.4bn.
Revenue of $10.8bn was $0.3bn or 2% higher on a constant currency
basis, including an adverse impact of $0.6bn from strategic
transactions.
Banking NII of $5.2bn decreased by $0.6bn or 10%, primarily driven
by the impact of disposals in Canada and Argentina of $0.5bn, and
the effects of lower interest rates on deposits. This reduction was
partly offset by balance sheet growth.
Fee and other income of $5.8bn was up by $1.1bn or 22%, driven by
Wealth due to broad-based growth across all products and in
multiple markets, including Hong Kong, mainland China, Singapore,
Mexico and Taiwan.
In Wealth, fee and other income of $5.2bn was up $0.9bn or
21%.
- Insurance
increased by $0.5bn or 31%, reflecting a higher CSM release given
continued year-on-year growth in our CSM balance and favourable
experience variances. The insurance manufacturing CSM balance at 30
September 2025 was $14.6bn, up $1.5bn or 11% compared with 30
September 2024. The increase primarily reflected new business CSM
growth and included a reduction of $1.0bn from the reclassification
of our life insurance businesses in France and the UK to held for
sale.
- Private
Bank increased by $0.2bn or 18%, as increased customer activity led
to strong performances in brokerage and trading, and from higher
annuity fees, driven by growth in invested asset
balances.
- Investment
distribution rose by $0.2bn or 23%, primarily due to higher sales
of mutual funds and structured products, mainly in
Asia.
Notable items in 9M25 included losses associated with the planned
sales of our French life insurance business and our UK life
insurance entity.
ECL of $0.7bn in 9M25 were broadly stable compared with 9M24 on a
constant currency basis.
Operating expenses of $6.8bn were $0.3bn or 5% higher than in 9M24
on a constant currency basis, primarily reflecting continued
investments in Wealth, higher planned spend and investment in
technology, the impact of inflation and an increase in
restructuring and other related costs. These increases were partly
offset by a reduction in costs following our business disposals in
Canada and Argentina.
3Q25 compared with 3Q24
|
Results - on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
3,823
|
3,645
|
178
|
5
|
(180)
|
|
ECL
|
(204)
|
(249)
|
45
|
18
|
7
|
|
Operating expenses
|
(2,351)
|
(2,213)
|
(138)
|
(6)
|
8
|
|
Share of profit/(loss) from associates and joint
ventures
|
24
|
14
|
10
|
71
|
-
|
|
Profit before tax
|
1,292
|
1,197
|
95
|
8
|
(165)
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
30 Sep 2025
|
30 Sep 2024
|
Variance
|
||
|
|
3Q25 vs. 3Q24
|
||||
|
|
|
of which strategic
transactions3
|
|||
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
1,785
|
1,887
|
(102)
|
(5)
|
(82)
|
|
Fee and other income
|
2,148
|
1,758
|
390
|
22
|
13
|
|
- Retail Banking
|
169
|
199
|
(30)
|
(15)
|
(10)
|
|
- Wealth
|
1,940
|
1,567
|
373
|
24
|
(16)
|
|
- Other2
|
39
|
(8)
|
47
|
>100
|
38
|
|
Revenue excluding notable items
|
3,933
|
3,645
|
288
|
8
|
(69)
|
|
Notable items
|
(110)
|
-
|
(110)
|
n/a
|
(111)
|
|
Revenue
|
3,823
|
3,645
|
178
|
5
|
(180)
|
1 For a description of how we derive
banking NII, see page 14.
Banking NII in IWPB is computed by deducting third-party NII in our
insurance business from total IWPB NII, which was $0.1bn in 3Q25
(3Q24: $0.1bn). Total Insurance NII is presented in 'fee and other
income' in Wealth.
2 Includes allocated revenue from Markets
Treasury and hyperinflationary impacts. It also includes other
non-product-specific income.
3 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
Profit before tax of $1.3bn was $0.1bn or 8% higher compared with
3Q24 on a constant currency basis. Revenue increased by $0.2bn or
5% on a constant currency basis reflecting growth in fee and other
income in Wealth, with strong performances in all products. This
was partly offset by a decrease in banking NII of $0.1bn due to the
impact of our business disposal in Argentina. ECL were $45m lower
compared with 3Q24 on a constant currency basis, mainly from lower
unsecured lending balances in Mexico. Operating expenses of $2.4bn
were $0.1bn or 6% higher on a constant currency basis, primarily
reflecting continued investments in Wealth, higher planned spend
and investment in technology, the impact of inflation and an
increase in restructuring and other related costs. These increases
were in part mitigated by continued cost discipline and the impact
of our business disposal in Argentina.
|
|
Corporate Centre - constant currency basis
9M25 compared with 9M24
|
Results - on a constant currency basis
|
|
||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
(1,151)
|
3,153
|
(4,304)
|
>(100)
|
(3,862)
|
|
ECL
|
(67)
|
(27)
|
(40)
|
>(100)
|
-
|
|
Operating expenses
|
(1,234)
|
(88)
|
(1,146)
|
>(100)
|
66
|
|
Share of profit/(loss) from associates and joint
ventures
|
1,216
|
2,184
|
(968)
|
(44)
|
-
|
|
Profit before tax
|
(1,236)
|
5,222
|
(6,458)
|
>(100)
|
(3,796)
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Nine months ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
9M25 vs. 9M24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions5
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
(558)
|
(578)
|
20
|
3
|
-
|
|
Fee and other
income2
|
621
|
416
|
205
|
49
|
-
|
|
Revenue excluding notable items
|
63
|
(162)
|
225
|
>100
|
-
|
|
Notable items
|
(1,214)
|
3,315
|
(4,529)
|
>(100)
|
(3,862)
|
|
Revenue3
|
(1,151)
|
3,153
|
(4,304)
|
>(100)
|
(3,862)
|
|
RoTE (annualised)4 (%)
|
(4.3)
|
14.3
|
|
|
|
|
RoTE excluding notable items (annualised)4 (%)
|
6.7
|
4.8
|
|
|
|
1 For a description of how we derive
banking NII, see page 14.
Banking NII in Corporate Centre is computed by 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'.
Corporate Centre banking net interest expense includes funding
charges on property and technology assets, and the banking NII of
the retained portfolio of home and other loans associated with the
disposal of our retail banking operations in
France.
2 'Fee and other income' includes gains and
losses on certain transactions, valuation differences on issued
long-term debt and associated swaps, fair value movements on
financial instruments, revaluation gains and losses on investment
properties and property disposals, as well as consolidation
adjustments and other revenue items not allocated to business
segments.
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 9M25 was $1,819m (9M24: $1,146m).
4 For details of our RoTE calculation by
business segment, see page 40.
5 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
A pre-tax loss of $1.2bn in 9M25 compared with a pre-tax profit of
$5.2bn in 9M24 on a constant currency basis. The reduction in
profit before tax was primarily due to the adverse impact from
notable items. In 9M25, these included legal
provisions of $1.4bn, a $1.1bn loss from the dilution of our
shareholding and a $1.0bn impairment to the carrying value of the
Group's interest in our associate Bank of Communications Co.,
Limited ('BoCom'). In 9M24, notable items included a net
$3.6bn gain related to business disposals in Canada and Argentina,
as well as a $0.3bn loss related to the early redemption of legacy
securities.
The Group's interest in BoCom reduced from 19.03% to 16.00%
following the completion of a capital issuance by BoCom on 17 June
2025. The dilution of the Group's interest resulted in a pre-tax
loss of $1.1bn, recognised in other operating income/expense in the
Group's consolidated income statement. The loss is not deductible
for tax purposes as a consequence of our shareholding in BoCom
being held for long-term investment purposes. The Group's
investment in BoCom continues to be classified as an
associate.
In addition, the Group's impairment test performed on the carrying
amount at 30 June 2025 resulted in an impairment of $1.0bn, as the
recoverable amount as determined by a value-in-use calculation was
lower than the carrying value recognised within impairment of
interest in associates. Consistent with prior periods, our
value-in-use calculation uses both historical experience and market
participant views to estimate future cash flows, relevant discount
rates and associated capital assumptions.
Neither the dilution loss nor the impairment loss had a material
impact on HSBC's capital ratios or distribution capacity. Both
amounts are treated as a material notable item, and therefore are
excluded from our dividend payout ratio.
We remain strategically committed to mainland China and continue
our valued, strategic partnership with BoCom.
Revenue was $4.3bn lower on a constant currency basis. This
primarily reflected the adverse impact of notable items, comprising
the non-recurrence of notable items in 9M24 as mentioned above, as
well as the dilution loss related to BoCom in 9M25.
Banking NII was a net expense of $0.6bn. This was stable compared
with 9M24 on a constant currency basis. Banking NII in 9M25 removes
from NII the internal cost to fund trading and fair value net
assets, predominantly in CIB, of $7.1bn (9M24:
$8.6bn).
Fee and other income of $0.6bn was $0.2bn higher, primarily due to
fair value gains on non-qualifying hedges related to our retained
French portfolio of home and certain other loans and the
non-recurrence of an impairment in 9M24 related to the sale of our
operations in Armenia. This was partly offset by a loss on the
early redemption of legacy securities.
Operating expenses increased by $1.1bn on a constant currency
basis, primarily reflecting a legal provision of $1.1bn in
connection with developments in a claim in Luxembourg relating to
the Madoff securities fraud, and a rise in restructuring and other
related costs, partly offset by higher recoveries from the business
segments.
Share of profit from associates and joint ventures less impairment
of $1.2bn decreased by $1.0bn or 44% on a constant currency basis,
due to the impairment loss of $1.0bn referred to
above.
3Q25 compared with 3Q24
|
Results - on a constant currency basis
|
|
||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions1
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Revenue
|
(69)
|
(212)
|
143
|
67
|
(102)
|
|
ECL
|
(65)
|
(22)
|
(43)
|
>(100)
|
-
|
|
Operating expenses
|
(1,070)
|
47
|
(1,117)
|
>(100)
|
10
|
|
Share of profit/(loss) from associates and joint
ventures
|
567
|
593
|
(26)
|
(4)
|
-
|
|
Profit before tax
|
(637)
|
406
|
(1,043)
|
>(100)
|
(93)
|
1 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
|
Management view of revenue - on a constant currency
basis
|
|||||
|
|
Quarter ended
|
||||
|
|
|
|
Variance
|
||
|
|
|
|
3Q25 vs. 3Q24
|
||
|
|
30 Sep 2025
|
30 Sep 2024
|
|
|
of which strategic
transactions4
|
|
|
$m
|
$m
|
$m
|
%
|
$m
|
|
Banking NII1
|
(236)
|
(245)
|
9
|
4
|
-
|
|
Fee and other income2
|
163
|
241
|
(78)
|
(32)
|
-
|
|
Revenue excluding notable items
|
(73)
|
(4)
|
(69)
|
>(100)
|
-
|
|
Notable items
|
4
|
(208)
|
212
|
>100
|
(102)
|
|
Revenue3
|
(69)
|
(212)
|
143
|
67
|
(102)
|
1 For a description of how we derive
banking NII, see page 14.
Banking NII in Corporate Centre is computed by 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'.
Corporate Centre banking net interest expense includes funding
charges on property and technology assets, and the banking NII of
the retained portfolio of home and other loans associated with the
disposal of our retail banking operations in
France.
2 'Fee and other income' includes gains and
losses on certain transactions, valuation differences on issued
long-term debt and associated swaps, fair value movements on
financial instruments, revaluation gains and losses on investment
properties and property disposals, as well as consolidation
adjustments and other revenue items not allocated to business
segments.
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 3Q25 was $607m (3Q24: $303m).
4 Impact of strategic transactions
classified as material notable items. For further details, see
'Strategic transactions supplementary analysis' on
page 31.
A pre-tax loss of $0.6bn in
3Q25 compared with a pre-tax profit of $0.4bn in 3Q24 on
a constant currency basis. The reduction was primarily due to the
recognition of a legal provision of $1.1bn in 3Q25. This
was partly offset by an increase in revenue
of $0.1bn reflecting a favourable movement in
notable items, primarily from the non-recurrence of a $0.3bn loss
in 3Q24 related to the early redemption of legacy securities. This
was partly offset by lower fee and other income, which included
fair value movements on financial instruments in Central Treasury
and structural foreign exchange hedges and a loss on the redemption
of legacy securities.
|
|
Supplementary financial information
Reported and constant currency results
|
Reported and constant currency results1
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue2,3
|
|
|
|
|
|
|
Reported
|
51,910
|
54,290
|
17,788
|
16,473
|
16,998
|
|
Currency translation
|
-
|
(61)
|
-
|
88
|
174
|
|
Constant currency
|
51,910
|
54,229
|
17,788
|
16,561
|
17,172
|
|
Change in expected credit losses and other credit impairment
charges
|
|
|
|
|
|
|
Reported
|
(2,949)
|
(2,052)
|
(1,008)
|
(1,065)
|
(986)
|
|
Currency translation
|
-
|
64
|
-
|
(11)
|
(9)
|
|
Constant currency
|
(2,949)
|
(1,988)
|
(1,008)
|
(1,076)
|
(995)
|
|
Operating expenses
|
|
|
|
|
|
|
Reported
|
(27,098)
|
(24,439)
|
(10,076)
|
(8,920)
|
(8,143)
|
|
Currency translation
|
-
|
36
|
-
|
(79)
|
(68)
|
|
Constant currency
|
(27,098)
|
(24,403)
|
(10,076)
|
(8,999)
|
(8,211)
|
|
Share of profit in associates and
joint ventures less impairment3
|
|
|
|
|
|
|
Reported
|
1,242
|
2,233
|
591
|
(162)
|
607
|
|
Currency translation
|
-
|
(7)
|
-
|
(4)
|
-
|
|
Constant currency
|
1,242
|
2,226
|
591
|
(166)
|
607
|
|
Profit before tax
|
|
|
|
|
|
|
Reported
|
23,105
|
30,032
|
7,295
|
6,326
|
8,476
|
|
Currency translation
|
-
|
32
|
-
|
(6)
|
97
|
|
Constant currency
|
23,105
|
30,064
|
7,295
|
6,320
|
8,573
|
|
Profit after tax
|
|
|
|
|
|
|
Reported
|
17,944
|
24,414
|
5,503
|
4,871
|
6,749
|
|
Currency translation
|
-
|
34
|
-
|
(14)
|
78
|
|
Constant currency
|
17,944
|
24,448
|
5,503
|
4,857
|
6,827
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
Reported
|
982,886
|
968,653
|
982,886
|
981,722
|
968,653
|
|
Currency translation
|
-
|
2,009
|
-
|
(4,481)
|
2,009
|
|
Constant currency
|
982,886
|
970,662
|
982,886
|
977,241
|
970,662
|
|
Customer accounts
|
|
|
|
|
|
|
Reported
|
1,737,247
|
1,660,715
|
1,737,247
|
1,718,604
|
1,660,715
|
|
Currency translation
|
-
|
3,261
|
-
|
(6,897)
|
3,261
|
|
Constant currency
|
1,737,247
|
1,663,976
|
1,737,247
|
1,711,707
|
1,663,976
|
1 In the current period, constant currency
results are equal to reported as there is no currency
translation.
2 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
3 Amounts in 'Revenue' include a loss of
$1.1bn inclusive of reserves recycling as a result of the dilution
of our shareholding in BoCom. We have also recognised a $1.0bn
impairment loss following an impairment test on the carrying value
of the Group's investment in BoCom in 'Share of profit in
associates and joint ventures less impairment'.
|
Notable items
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related
costs1,2
|
(283)
|
3,643
|
(144)
|
(48)
|
72
|
|
Early redemption of legacy securities
|
-
|
(283)
|
-
|
-
|
(283)
|
|
Dilution loss of interest in BoCom associate3
|
(1,104)
|
-
|
32
|
(1,136)
|
-
|
|
Operating expenses
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
(345)
|
(149)
|
(118)
|
(177)
|
(48)
|
|
Restructuring and other related costs4
|
(773)
|
22
|
(157)
|
(475)
|
3
|
|
Legal provisions5,6
|
(1,421)
|
-
|
(1,421)
|
-
|
-
|
|
Impairment losses of interest in BoCom
associate3
|
(1,000)
|
-
|
-
|
(1,000)
|
-
|
|
Tax
|
|
|
|
|
|
|
Tax credit on notable items
|
421
|
94
|
42
|
313
|
81
|
1 9M25 includes $0.1bn of fair value losses
on ADRs in Galicia received as part of the sale consideration for
HSBC Argentina, which were sold in 2Q25.
2 9M24 includes a $4.8bn gain on disposal
of our banking business in Canada, inclusive of a $0.3bn gain on
the foreign exchange hedging of the proceeds, the recycling of
$0.6bn in foreign currency translation reserve losses and $0.4bn of
other reserves recycling losses. This was partly offset by a $1.2bn
impairment recognised in relation to the sale of our business in
Argentina.
3 Amounts in 'Dilution loss of interest in
BoCom associate' include a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We have also recognised a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in
BoCom in 'Impairment losses of interest in BoCom
associate'.
4 Amounts relate to restructuring
provisions recognised in 2025 as well as reversals of restructuring
provisions recognised during 2022.
5 During 3Q25, a $0.3bn provision was
recognised in connection with certain historical trading activities
in HSBC Bank plc.
6 During 3Q25, a $1.1bn provision was recognised
in connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
|
|
Reported and constant currency results - business
segments
|
Reported and constant currency results - business
segments1
|
||||||
|
|
Nine months ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue2,3
|
11,812
|
9,569
|
20,846
|
10,834
|
(1,151)
|
51,910
|
|
ECL
|
(1,168)
|
(594)
|
(463)
|
(657)
|
(67)
|
(2,949)
|
|
Operating expenses
|
(3,519)
|
(4,052)
|
(11,474)
|
(6,819)
|
(1,234)
|
(27,098)
|
|
Share of profit in associates and joint ventures less
impairment3
|
-
|
-
|
-
|
26
|
1,216
|
1,242
|
|
Profit before tax
|
7,125
|
4,923
|
8,909
|
3,384
|
(1,236)
|
23,105
|
|
Loans and advances to customers (net)4
|
229,574
|
299,443
|
303,055
|
150,654
|
160
|
982,886
|
|
Customer accounts
|
519,269
|
357,201
|
586,529
|
273,849
|
399
|
1,737,247
|
|
|
|
|
|
|
|
|
|
|
Nine months ended 30 Sep 2024
|
|||||
|
Revenue2
|
11,228
|
9,159
|
20,111
|
10,578
|
3,153
|
54,229
|
|
ECL
|
(721)
|
(238)
|
(337)
|
(665)
|
(27)
|
(1,988)
|
|
Operating expenses
|
(3,539)
|
(3,665)
|
(10,621)
|
(6,490)
|
(88)
|
(24,403)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
1
|
41
|
2,184
|
2,226
|
|
Profit before tax
|
6,968
|
5,256
|
9,154
|
3,464
|
5,222
|
30,064
|
|
Loans and advances to customers (net)4
|
235,237
|
285,076
|
299,819
|
142,321
|
8,209
|
970,662
|
|
Customer accounts
|
494,787
|
348,752
|
555,230
|
264,829
|
378
|
1,663,976
|
1 In the current period, constant currency
results are equal to reported, as there is no currency
translation.
2 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
3 Amounts in 'Revenue' include a loss of
$1.1bn inclusive of reserves recycling as a result of the dilution
of our shareholding in BoCom. We have also recognised
a
$1.0bn impairment loss following an impairment test on the carrying
value of the Group's investment in BoCom in 'Share of profit in
associates and joint
ventures less impairment'.
4 The reduction in loans and advances to
customers in Corporate Centre as at 30 September 2025 includes a
$6.0bn reclassification to 'financial investments measured at fair
value through other comprehensive income' of a portfolio of home
and other loans retained following the disposal of our retail
banking operations in France. With effect from 1 January 2025
we reclassified this portfolio to a hold-to-collect-and-sell
business model, measuring it at FVOCI.
|
Notable items - business segments
|
||||||
|
|
Nine months ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related
costs1
|
-
|
-
|
(6)
|
(167)
|
(110)
|
(283)
|
|
Dilution loss of interest in BoCom associate2
|
-
|
-
|
-
|
-
|
(1,104)
|
(1,104)
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
1
|
(213)
|
(54)
|
(79)
|
(345)
|
|
Restructuring and other related costs3
|
(10)
|
(63)
|
(275)
|
(108)
|
(317)
|
(773)
|
|
Legal provisions4,5
|
-
|
-
|
(321)
|
-
|
(1,100)
|
(1,421)
|
|
Impairment losses of interest in BoCom
associate2
|
-
|
-
|
-
|
-
|
(1,000)
|
(1,000)
|
|
|
|
|
|
|
|
|
|
|
Nine months ended 30 Sep 2024
|
|||||
|
Revenue
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related
costs6
|
-
|
-
|
(14)
|
55
|
3,602
|
3,643
|
|
Early redemption of legacy securities
|
-
|
-
|
-
|
-
|
(283)
|
(283)
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
3
|
-
|
(1)
|
(151)
|
(149)
|
|
Restructuring and other related costs7
|
-
|
5
|
5
|
1
|
11
|
22
|
1 Includes $0.1bn of fair value losses on
ADRs in Galicia received as part of the sale consideration for HSBC
Argentina, which were sold in 2Q25.
2 Amounts in 'Dilution loss of interest in
BoCom associate' include a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We have also recognised a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in
BoCom in 'Impairment losses of interest in BoCom
associate'.
3 Amounts relate to restructuring
provisions recognised in 2025 as well as reversals of restructuring
provisions recognised during 2022.
4 During 3Q25, a $0.3bn provision was
recognised in connection with certain historical trading activities
in HSBC Bank plc.
5 During 3Q25, a $1.1bn provision was recognised
in connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
6 Includes a $4.8bn gain on disposal of our
banking business in Canada, inclusive of a $0.3bn gain on the
foreign exchange hedging of the sale proceeds, the recycling of
$0.6bn in foreign currency translation reserve losses and $0.4bn of
other reserves losses. This was partly offset by a $1.2bn
impairment recognised in relation to the sale of our business in
Argentina.
7 Amounts relate to reversals of
restructuring provisions recognised during 2022.
|
Reconciliation of reported results to constant currency results -
business segments
|
||||||
|
|
Nine months ended 30 Sep 2024
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue1
|
|
|
|
|
|
|
|
- Reported
|
11,214
|
8,886
|
20,259
|
10,802
|
3,129
|
54,290
|
|
- Currency translation
|
14
|
273
|
(148)
|
(224)
|
24
|
(61)
|
|
- Constant currency
|
11,228
|
9,159
|
20,111
|
10,578
|
3,153
|
54,229
|
|
ECL
|
|
|
|
|
|
|
|
- Reported
|
(720)
|
(232)
|
(345)
|
(728)
|
(27)
|
(2,052)
|
|
- Currency translation
|
(1)
|
(6)
|
8
|
63
|
-
|
64
|
|
- Constant currency
|
(721)
|
(238)
|
(337)
|
(665)
|
(27)
|
(1,988)
|
|
Operating expenses
|
|
|
|
|
|
|
|
- Reported
|
(3,535)
|
(3,558)
|
(10,631)
|
(6,646)
|
(69)
|
(24,439)
|
|
- Currency translation
|
(4)
|
(107)
|
10
|
156
|
(19)
|
36
|
|
- Constant currency
|
(3,539)
|
(3,665)
|
(10,621)
|
(6,490)
|
(88)
|
(24,403)
|
|
Share of profit/(loss) in associates and joint
ventures
|
|
|
|
|
|
|
|
- Reported
|
-
|
-
|
1
|
43
|
2,189
|
2,233
|
|
- Currency translation
|
-
|
-
|
-
|
(2)
|
(5)
|
(7)
|
|
- Constant currency
|
-
|
-
|
1
|
41
|
2,184
|
2,226
|
|
Profit before tax
|
|
|
|
|
|
|
|
- Reported
|
6,959
|
5,096
|
9,284
|
3,471
|
5,222
|
30,032
|
|
- Currency translation
|
9
|
160
|
(130)
|
(7)
|
-
|
32
|
|
- Constant currency
|
6,968
|
5,256
|
9,154
|
3,464
|
5,222
|
30,064
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
- Reported
|
235,772
|
283,528
|
299,685
|
141,868
|
7,800
|
968,653
|
|
- Currency translation
|
(535)
|
1,548
|
134
|
453
|
409
|
2,009
|
|
- Constant currency
|
235,237
|
285,076
|
299,819
|
142,321
|
8,209
|
970,662
|
|
Customer accounts
|
|
|
|
|
|
|
|
- Reported
|
495,810
|
346,858
|
552,555
|
265,118
|
374
|
1,660,715
|
|
- Currency translation
|
(1,023)
|
1,894
|
2,675
|
(289)
|
4
|
3,261
|
|
- Constant currency
|
494,787
|
348,752
|
555,230
|
264,829
|
378
|
1,663,976
|
1
Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as
revenue.
|
Reported and constant currency results - business segments
(continued)1
|
||||||
|
|
Quarter ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue2
|
3,964
|
3,341
|
6,729
|
3,823
|
(69)
|
17,788
|
|
ECL
|
(304)
|
(271)
|
(164)
|
(204)
|
(65)
|
(1,008)
|
|
Operating expenses
|
(1,209)
|
(1,428)
|
(4,018)
|
(2,351)
|
(1,070)
|
(10,076)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
-
|
24
|
567
|
591
|
|
Profit before tax
|
2,451
|
1,642
|
2,547
|
1,292
|
(637)
|
7,295
|
|
Loans and advances to customers (net)
|
229,574
|
299,443
|
303,055
|
150,654
|
160
|
982,886
|
|
Customer accounts
|
519,269
|
357,201
|
586,529
|
273,849
|
399
|
1,737,247
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 Jun 2025
|
|||||
|
Revenue2,3
|
3,836
|
3,257
|
6,993
|
3,546
|
(1,071)
|
16,561
|
|
ECL
|
(544)
|
(156)
|
(132)
|
(235)
|
(9)
|
(1,076)
|
|
Operating expenses
|
(1,165)
|
(1,353)
|
(4,000)
|
(2,395)
|
(86)
|
(8,999)
|
|
Share of profit in associates and joint ventures less
impairment3
|
-
|
-
|
-
|
(8)
|
(158)
|
(166)
|
|
Profit before tax
|
2,127
|
1,748
|
2,861
|
908
|
(1,324)
|
6,320
|
|
Loans and advances to customers (net)
|
232,144
|
294,076
|
303,398
|
147,433
|
190
|
977,241
|
|
Customer accounts
|
521,959
|
353,810
|
561,157
|
274,434
|
347
|
1,711,707
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 Sep 2024
|
|||||
|
Revenue2
|
3,796
|
3,165
|
6,778
|
3,645
|
(212)
|
17,172
|
|
ECL
|
(383)
|
(180)
|
(161)
|
(249)
|
(22)
|
(995)
|
|
Operating expenses
|
(1,199)
|
(1,262)
|
(3,584)
|
(2,213)
|
47
|
(8,211)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
-
|
14
|
593
|
607
|
|
Profit before tax
|
2,214
|
1,723
|
3,033
|
1,197
|
406
|
8,573
|
|
Loans and advances to customers (net)
|
235,237
|
285,076
|
299,819
|
142,321
|
8,209
|
970,662
|
|
Customer accounts
|
494,787
|
348,752
|
555,230
|
264,829
|
378
|
1,663,976
|
1 In the current period, constant currency
results are equal to reported as there is no currency
translation.
2 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
3 Amounts in 'Revenue' include a loss of
$1.1bn inclusive of reserves recycling as a result of the dilution
of our shareholding in BoCom. We have also recognised a $1.0bn
impairment loss following an impairment test on the carrying value
of the Group's investment in BoCom in 'Share of profit in
associates and joint ventures less impairment'.
|
Notable items - business segments (continued)
|
||||||
|
|
Quarter ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
Disposal, wind-downs, acquisitions and related costs
|
-
|
-
|
(6)
|
(110)
|
(28)
|
(144)
|
|
Dilution loss of interest in BoCom associate1
|
-
|
-
|
-
|
-
|
32
|
32
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposal, wind-downs, acquisitions and related costs
|
-
|
-
|
(34)
|
(49)
|
(35)
|
(118)
|
|
Restructuring and other related costs2
|
(1)
|
(15)
|
(58)
|
(29)
|
(54)
|
(157)
|
|
Legal provisions3,4
|
-
|
-
|
(321)
|
-
|
(1,100)
|
(1,421)
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 Jun 2025
|
|||||
|
Revenue
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
-
|
-
|
(43)
|
(5)
|
(48)
|
|
Dilution loss of interest in BoCom associate1
|
-
|
-
|
-
|
-
|
(1,136)
|
(1,136)
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
1
|
(153)
|
(1)
|
(24)
|
(177)
|
|
Restructuring and other related costs2
|
(2)
|
(44)
|
(171)
|
(56)
|
(202)
|
(475)
|
|
Impairment losses of interest in BoCom associate1
|
-
|
-
|
-
|
-
|
(1,000)
|
(1,000)
|
|
|
|
|
|
|
|
|
|
|
Quarter ended 30 Sep 2024
|
|||||
|
Revenue
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
-
|
-
|
-
|
72
|
72
|
|
Early redemption of legacy securities
|
-
|
-
|
-
|
-
|
(283)
|
(283)
|
|
Operating expenses
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
-
|
-
|
-
|
(48)
|
(48)
|
|
Restructuring and other related costs5
|
-
|
1
|
-
|
-
|
2
|
3
|
1 Amounts in 'Dilution loss of interest in
BoCom associate' include a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We have also recognised a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in
BoCom in 'Impairment losses of interest in BoCom
associate'.
2 Amounts relate to restructuring
provisions recognised in 2025 and reversals of restructuring
provisions recognised during 2022.
3 During 3Q25, a $0.3bn provision was
recognised in connection with certain historical trading activities
in HSBC Bank plc.
4 During 3Q25, a $1.1bn provision was recognised
in connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
5 Amounts relate to reversals of
restructuring provisions recognised during 2022.
|
Reconciliation of reported results to constant currency results -
business segments (continued)
|
||||||
|
|
Quarter ended 30 Jun 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue1
|
|
|
|
|
|
|
|
- Reported
|
3,842
|
3,225
|
6,930
|
3,500
|
(1,024)
|
16,473
|
|
- Currency translation
|
(6)
|
32
|
63
|
46
|
(47)
|
88
|
|
- Constant currency
|
3,836
|
3,257
|
6,993
|
3,546
|
(1,071)
|
16,561
|
|
ECL
|
|
|
|
|
|
|
|
- Reported
|
(544)
|
(154)
|
(130)
|
(226)
|
(11)
|
(1,065)
|
|
- Currency translation
|
-
|
(2)
|
(2)
|
(9)
|
2
|
(11)
|
|
- Constant currency
|
(544)
|
(156)
|
(132)
|
(235)
|
(9)
|
(1,076)
|
|
Operating expenses
|
|
|
|
|
|
|
|
- Reported
|
(1,167)
|
(1,341)
|
(3,958)
|
(2,362)
|
(92)
|
(8,920)
|
|
- Currency translation
|
2
|
(12)
|
(42)
|
(33)
|
6
|
(79)
|
|
- Constant currency
|
(1,165)
|
(1,353)
|
(4,000)
|
(2,395)
|
(86)
|
(8,999)
|
|
Share of profit in associates and joint ventures
|
|
|
|
|
|
|
|
- Reported
|
-
|
-
|
-
|
(8)
|
(154)
|
(162)
|
|
- Currency translation
|
-
|
-
|
-
|
-
|
(4)
|
(4)
|
|
- Constant currency
|
-
|
-
|
-
|
(8)
|
(158)
|
(166)
|
|
Profit before tax
|
|
|
|
|
|
|
|
- Reported
|
2,131
|
1,730
|
2,842
|
904
|
(1,281)
|
6,326
|
|
- Currency translation
|
(4)
|
18
|
19
|
4
|
(43)
|
(6)
|
|
- Constant currency
|
2,127
|
1,748
|
2,861
|
908
|
(1,324)
|
6,320
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
- Reported
|
230,139
|
299,631
|
304,240
|
147,523
|
189
|
981,722
|
|
- Currency translation
|
2,005
|
(5,555)
|
(842)
|
(90)
|
1
|
(4,481)
|
|
- Constant currency
|
232,144
|
294,076
|
303,398
|
147,433
|
190
|
977,241
|
|
Customer accounts
|
|
|
|
|
|
|
|
- Reported
|
517,406
|
360,494
|
564,847
|
275,504
|
353
|
1,718,604
|
|
- Currency translation
|
4,553
|
(6,684)
|
(3,690)
|
(1,070)
|
(6)
|
(6,897)
|
|
- Constant currency
|
521,959
|
353,810
|
561,157
|
274,434
|
347
|
1,711,707
|
1
Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as
revenue.
|
|
Quarter ended 30 Sep 2024
|
|||||
|
Revenue1
|
|
|
|
|
|
|
|
- Reported
|
3,806
|
3,048
|
6,725
|
3,632
|
(213)
|
16,998
|
|
- Currency translation
|
(10)
|
117
|
53
|
13
|
1
|
174
|
|
- Constant currency
|
3,796
|
3,165
|
6,778
|
3,645
|
(212)
|
17,172
|
|
ECL
|
|
|
|
|
|
|
|
- Reported
|
(384)
|
(174)
|
(158)
|
(249)
|
(21)
|
(986)
|
|
- Currency translation
|
1
|
(6)
|
(3)
|
-
|
(1)
|
(9)
|
|
- Constant currency
|
(383)
|
(180)
|
(161)
|
(249)
|
(22)
|
(995)
|
|
Operating expenses
|
|
|
|
|
|
|
|
- Reported
|
(1,202)
|
(1,215)
|
(3,548)
|
(2,220)
|
42
|
(8,143)
|
|
- Currency translation
|
3
|
(47)
|
(36)
|
7
|
5
|
(68)
|
|
- Constant currency
|
(1,199)
|
(1,262)
|
(3,584)
|
(2,213)
|
47
|
(8,211)
|
|
Share of profit in associates and joint ventures
|
|
|
|
|
|
|
|
- Reported
|
-
|
-
|
-
|
15
|
592
|
607
|
|
- Currency translation
|
-
|
-
|
-
|
(1)
|
1
|
-
|
|
- Constant currency
|
-
|
-
|
-
|
14
|
593
|
607
|
|
Profit before tax
|
|
|
|
|
|
|
|
- Reported
|
2,220
|
1,659
|
3,019
|
1,178
|
400
|
8,476
|
|
- Currency translation
|
(6)
|
64
|
14
|
19
|
6
|
97
|
|
- Constant currency
|
2,214
|
1,723
|
3,033
|
1,197
|
406
|
8,573
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
- Reported
|
235,772
|
283,528
|
299,685
|
141,868
|
7,800
|
968,653
|
|
- Currency translation
|
(535)
|
1,548
|
134
|
453
|
409
|
2,009
|
|
- Constant currency
|
235,237
|
285,076
|
299,819
|
142,321
|
8,209
|
970,662
|
|
Customer accounts
|
|
|
|
|
|
|
|
- Reported
|
495,810
|
346,858
|
552,555
|
265,118
|
374
|
1,660,715
|
|
- Currency translation
|
(1,023)
|
1,894
|
2,675
|
(289)
|
4
|
3,261
|
|
- Constant currency
|
494,787
|
348,752
|
555,230
|
264,829
|
378
|
1,663,976
|
1
Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as
revenue.
|
Reconciliation of reported risk-weighted assets to constant
currency risk-weighted assets - business segments
|
||||||
|
|
At 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
Risk-weighted assets
|
|
|
|
|
|
|
|
Reported
|
140.5
|
153.5
|
403.3
|
91.6
|
89.9
|
878.8
|
|
Constant currency
|
140.5
|
153.5
|
403.3
|
91.6
|
89.9
|
878.8
|
|
|
|
|
|
|
|
|
|
|
At 30 Jun 2025
|
|||||
|
Risk-weighted assets
|
|
|
|
|
|
|
|
Reported
|
140.6
|
153.0
|
411.2
|
91.0
|
91.1
|
886.9
|
|
Currency translation
|
1.2
|
(2.9)
|
(1.1)
|
0.1
|
(0.1)
|
(2.8)
|
|
Constant currency
|
141.8
|
150.1
|
410.1
|
91.1
|
91.0
|
884.1
|
|
|
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 6 for
further information on material notable items and the impact of
strategic transactions.
|
Impact of strategic transactions by business segment: constant
currency results
|
||||||
|
|
Nine months ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
-
|
-
|
(6)
|
(167)
|
(109)
|
(282)
|
|
ECL
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Operating expenses
|
-
|
1
|
(213)
|
(54)
|
(79)
|
(345)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
-
|
1
|
(219)
|
(222)
|
(187)
|
(627)
|
|
- business in Argentina
|
-
|
-
|
-
|
-
|
(106)
|
(106)
|
|
- wind-down of M&A and ECM in the UK, Europe and
US1
|
-
|
-
|
(103)
|
-
|
-
|
(103)
|
|
- France life insurance business
|
-
|
-
|
-
|
(92)
|
(2)
|
(94)
|
|
- UK life insurance business
|
-
|
-
|
-
|
(82)
|
-
|
(82)
|
|
- other strategic transactions
|
-
|
1
|
(116)
|
(48)
|
(79)
|
(242)
|
|
of which: notable items
|
|
|||||
|
Revenue
|
-
|
-
|
(6)
|
(167)
|
(109)
|
(282)
|
|
Profit before tax
|
-
|
1
|
(219)
|
(222)
|
(187)
|
(627)
|
|
|
Nine months ended 30 Sep 2024
|
|||||
|
Revenue
|
-
|
-
|
569
|
450
|
3,754
|
4,773
|
|
ECL
|
-
|
-
|
(39)
|
(27)
|
-
|
(66)
|
|
Operating expenses
|
-
|
3
|
(277)
|
(292)
|
(145)
|
(711)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
-
|
3
|
253
|
130
|
3,609
|
3,995
|
|
- retail banking operations in France
|
-
|
-
|
-
|
56
|
(2)
|
54
|
|
- banking business in Canada
|
-
|
-
|
144
|
67
|
4,773
|
4,984
|
|
- business in Argentina
|
-
|
-
|
150
|
7
|
(1,162)
|
(1,005)
|
|
- wind-down of M&A and ECM in the UK, Europe and
US1
|
-
|
-
|
(41)
|
-
|
-
|
(41)
|
|
- other strategic transactions
|
-
|
3
|
-
|
-
|
-
|
3
|
|
of which: notable items
|
|
|||||
|
Revenue
|
-
|
-
|
-
|
55
|
3,754
|
3,809
|
|
Profit before tax
|
-
|
3
|
(1)
|
55
|
3,609
|
3,666
|
|
of which: distorting impact of operating results between
periods
|
|
|||||
|
Revenue
|
-
|
-
|
569
|
395
|
-
|
964
|
|
Profit before tax
|
-
|
-
|
254
|
75
|
-
|
329
|
|
Impact of strategic transactions by business segment: constant
currency results (continued)
|
||||||
|
|
Quarter ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
-
|
-
|
(6)
|
(111)
|
(28)
|
(145)
|
|
ECL
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Operating expenses
|
-
|
-
|
(34)
|
(49)
|
(34)
|
(117)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
-
|
-
|
(40)
|
(160)
|
(62)
|
(262)
|
|
- business in Argentina
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- wind-down of M&A and ECM in the UK, Europe and
US1
|
-
|
-
|
(13)
|
-
|
-
|
(13)
|
|
- France life insurance business
|
-
|
-
|
-
|
(37)
|
(2)
|
(39)
|
|
- UK life insurance business
|
-
|
-
|
-
|
(82)
|
-
|
(82)
|
|
- other strategic transactions
|
-
|
-
|
(27)
|
(41)
|
(60)
|
(128)
|
|
of which: notable items
|
|
|||||
|
Revenue
|
-
|
-
|
(6)
|
(111)
|
(28)
|
(145)
|
|
Profit before tax
|
-
|
-
|
(40)
|
(160)
|
(62)
|
(262)
|
|
|
Quarter ended 30 Jun 2025
|
|||||
|
Revenue
|
-
|
-
|
-
|
(44)
|
(6)
|
(50)
|
|
ECL
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Operating expenses
|
-
|
1
|
(182)
|
(1)
|
(25)
|
(207)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Profit/(loss) before tax
|
-
|
1
|
(182)
|
(44)
|
(31)
|
(256)
|
|
- business in Argentina
|
-
|
-
|
-
|
-
|
(15)
|
(15)
|
|
- wind-down of M&A and ECM in the UK, Europe and
US1
|
-
|
-
|
(92)
|
-
|
-
|
(92)
|
|
- France life insurance business
|
-
|
-
|
-
|
(42)
|
-
|
(42)
|
|
- UK life insurance business
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- other strategic transactions
|
-
|
1
|
(90)
|
(2)
|
(16)
|
(107)
|
|
of which: notable items
|
|
|||||
|
Revenue
|
-
|
-
|
-
|
(44)
|
(6)
|
(50)
|
|
Profit/(loss) before tax
|
-
|
1
|
(182)
|
(44)
|
(31)
|
(256)
|
|
of which: distorting impact of operating results between
periods
|
|
|||||
|
Revenue
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Profit/(loss) before tax
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Quarter ended 30 Sep 2024
|
|||||
|
Revenue
|
-
|
-
|
73
|
69
|
75
|
217
|
|
ECL
|
-
|
-
|
4
|
(7)
|
-
|
(3)
|
|
Operating expenses
|
-
|
-
|
(73)
|
(57)
|
(44)
|
(174)
|
|
Share of profit in associates and joint ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Profit before tax
|
-
|
-
|
4
|
5
|
31
|
40
|
|
- business in Argentina
|
-
|
-
|
34
|
5
|
30
|
69
|
|
- wind-down of M&A and ECM in the UK, Europe and
US1
|
-
|
-
|
(30)
|
-
|
-
|
(30)
|
|
- other strategic transactions
|
-
|
-
|
-
|
-
|
1
|
1
|
|
of which: notable items
|
|
|||||
|
Revenue
|
-
|
-
|
-
|
-
|
75
|
75
|
|
Profit before tax
|
-
|
-
|
-
|
-
|
31
|
31
|
|
of which: distorting impact of operating results between
periods
|
|
|||||
|
Revenue
|
-
|
-
|
73
|
69
|
-
|
142
|
|
Profit before tax
|
-
|
-
|
4
|
5
|
-
|
9
|
1 Includes the notable item impact of the
wind-down of M&A and ECM activities in the UK, Europe and US,
primarily related to severance costs, as well as the resultant
reduction in operating expenses. The impact of the wind-down on
revenue was insignificant for the nine months ended 30 September
2025.
Reported and constant currency results - legal
entities
|
Reported and constant currency results - legal
entities1
|
|||||||||
|
|
Nine months ended 30 Sep 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.
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading
entities2
|
Holding
companies,
shared
service
centres and
intra-Group
eliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue3,4
|
10,202
|
7,799
|
26,479
|
1,899
|
3,527
|
2,568
|
1,833
|
(2,397)
|
51,910
|
|
ECL
|
(609)
|
(123)
|
(1,208)
|
(163)
|
(169)
|
(584)
|
(22)
|
(71)
|
(2,949)
|
|
Operating expenses
|
(4,146)
|
(7,033)
|
(11,100)
|
(965)
|
(2,502)
|
(1,469)
|
(1,044)
|
1,161
|
(27,098)
|
|
Share of profit in associates and joint ventures less
impairment4
|
-
|
60
|
664
|
-
|
-
|
8
|
513
|
(3)
|
1,242
|
|
Profit before tax
|
5,447
|
703
|
14,835
|
771
|
856
|
523
|
1,280
|
(1,310)
|
23,105
|
|
Loans and advances to customers (net)
|
305,503
|
108,308
|
460,790
|
22,835
|
56,528
|
25,113
|
3,809
|
-
|
982,886
|
|
Customer accounts
|
368,585
|
309,673
|
882,380
|
39,935
|
99,160
|
27,235
|
10,262
|
17
|
1,737,247
|
1 In the current period, constant currency
results are equal to reported, as there is no currency
translation.
2 Other trading entities 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
$1,095m.
3 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
4 Amounts in 'Revenue' include a loss of
$1.1bn inclusive of reserves recycling as a result of the dilution
of our shareholding in BoCom. We have also recognised a $1.0bn
impairment loss following an impairment test on the carrying value
of the Group's investment in BoCom in 'Share of profit in
associates and joint ventures less impairment'.
|
Notable items - legal entities
|
|||||||||
|
|
Nine months ended 30 Sep 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.
|
GrupoFinancieroHSBC, 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
|
-
|
(160)
|
-
|
(1)
|
-
|
-
|
-
|
(122)
|
(283)
|
|
Dilution loss of interest in BoCom associate2
|
-
|
-
|
(1,138)
|
-
|
-
|
-
|
-
|
34
|
(1,104)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
1
|
(259)
|
(22)
|
(13)
|
(20)
|
-
|
-
|
(32)
|
(345)
|
|
Restructuring and other related costs3
|
(107)
|
(239)
|
(199)
|
(21)
|
(54)
|
(29)
|
(27)
|
(97)
|
(773)
|
|
Legal provisions4,5
|
-
|
(1,421)
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,421)
|
|
Impairment losses of interest in BoCom
associate2
|
-
|
-
|
(1,000)
|
-
|
-
|
-
|
-
|
-
|
(1,000)
|
1 Includes $0.1bn of fair value losses on
ADRs in Galicia received as part of the sale consideration for HSBC
Argentina, which were sold in 2Q25.
2 Amounts in 'Dilution loss of interest in
BoCom associate' include a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We have also recognised a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in
BoCom in 'Impairment losses of interest in BoCom
associate'.
3 Amounts relate to restructuring
provisions recognised in 2025 as well as reversals of restructuring
provisions recognised during 2022.
4 During 3Q25, a $0.3bn provision was
recognised in connection with certain historical trading activities
in HSBC Bank plc.
5 During 3Q25, a $1.1bn provision was recognised
in connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
|
Reconciliation of reported results to constant currency results -
legal entities
|
||||||||||
|
|
Nine months ended 30 Sep 2024
|
|||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong andShanghaiBankingCorporationLimited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
HSBC Bank Canada
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading entities1
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue2
|
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
9,489
|
7,169
|
25,729
|
1,882
|
3,036
|
462
|
2,744
|
2,561
|
1,218
|
54,290
|
|
- Currency translation
|
285
|
207
|
9
|
1
|
-
|
(27)
|
(244)
|
(322)
|
30
|
(61)
|
|
- Constant currency
|
9,774
|
7,376
|
25,738
|
1,883
|
3,036
|
435
|
2,500
|
2,239
|
1,248
|
54,229
|
|
ECL
|
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
(235)
|
63
|
(991)
|
(134)
|
(52)
|
(40)
|
(599)
|
(71)
|
7
|
(2,052)
|
|
- Currency translation
|
(7)
|
8
|
(1)
|
-
|
-
|
3
|
50
|
11
|
-
|
64
|
|
- Constant currency
|
(242)
|
71
|
(992)
|
(134)
|
(52)
|
(37)
|
(549)
|
(60)
|
7
|
(1,988)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
(3,699)
|
(4,814)
|
(10,470)
|
(881)
|
(2,538)
|
(236)
|
(1,475)
|
(1,480)
|
1,154
|
(24,439)
|
|
- Currency translation
|
(110)
|
(146)
|
(8)
|
(1)
|
-
|
13
|
134
|
184
|
(30)
|
36
|
|
- Constant currency
|
(3,809)
|
(4,960)
|
(10,478)
|
(882)
|
(2,538)
|
(223)
|
(1,341)
|
(1,296)
|
1,124
|
(24,403)
|
|
Share of profit/(loss) in associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
-
|
19
|
1,737
|
-
|
-
|
-
|
12
|
467
|
(2)
|
2,233
|
|
- Currency translation
|
-
|
-
|
(7)
|
-
|
-
|
-
|
(1)
|
-
|
1
|
(7)
|
|
- Constant currency
|
-
|
19
|
1,730
|
-
|
-
|
-
|
11
|
467
|
(1)
|
2,226
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
5,555
|
2,437
|
16,005
|
867
|
446
|
186
|
682
|
1,477
|
2,377
|
30,032
|
|
- Currency translation
|
168
|
69
|
(7)
|
-
|
-
|
(11)
|
(61)
|
(127)
|
1
|
32
|
|
- Constant currency
|
5,723
|
2,506
|
15,998
|
867
|
446
|
175
|
621
|
1,350
|
2,378
|
30,064
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
289,424
|
112,275
|
460,717
|
20,697
|
56,382
|
-
|
24,412
|
4,745
|
1
|
968,653
|
|
- Currency translation
|
1,580
|
3,871
|
(4,998)
|
4
|
-
|
-
|
1,798
|
(246)
|
-
|
2,009
|
|
- Constant currency
|
291,004
|
116,146
|
455,719
|
20,701
|
56,382
|
-
|
26,210
|
4,499
|
1
|
970,662
|
|
Customer accounts
|
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
357,874
|
298,583
|
835,925
|
33,543
|
98,379
|
-
|
26,655
|
9,731
|
25
|
1,660,715
|
|
- Currency translation
|
1,954
|
6,648
|
(6,836)
|
13
|
-
|
-
|
1,962
|
(482)
|
2
|
3,261
|
|
- Constant currency
|
359,828
|
305,231
|
829,089
|
33,556
|
98,379
|
-
|
28,617
|
9,249
|
27
|
1,663,976
|
1 Other trading entities 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 $1,093m
and constant currency profit before tax of
$1,016m.
2 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
|
Notable items - legal entities (continued)
|
||||||||||
|
|
Nine months ended 30 Sep 2024
|
|||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
HSBC Bank Canada
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading entities
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related
costs1
|
-
|
(128)
|
-
|
-
|
-
|
-
|
-
|
(6)
|
3,777
|
3,643
|
|
Early redemption of legacy securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(283)
|
(283)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
3
|
(5)
|
-
|
-
|
(21)
|
(36)
|
-
|
(31)
|
(59)
|
(149)
|
|
Restructuring and other related costs2
|
5
|
11
|
-
|
2
|
-
|
-
|
-
|
-
|
4
|
22
|
1 Includes a $4.8bn gain on disposal of our
banking business in Canada, inclusive of a $0.3bn gain on the
foreign exchange hedging of the sale proceeds, the recycling of
$0.6bn in foreign currency translation reserve losses and $0.4bn of
other reserves losses. This was partly offset by a $1.2bn
impairment recognised in relation to the sale of our business in
Argentina.
2 Amounts relate to reversals of
restructuring provisions recognised during 2022.
|
Reported and constant currency results - legal entities
(continued)1
|
|||||||||
|
|
Quarter ended 30 Sep 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.
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading
entities2
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue3
|
3,559
|
2,441
|
9,140
|
645
|
1,208
|
903
|
666
|
(774)
|
17,788
|
|
ECL
|
(269)
|
(24)
|
(298)
|
(115)
|
(19)
|
(201)
|
(9)
|
(73)
|
(1,008)
|
|
Operating expenses
|
(1,461)
|
(3,227)
|
(3,797)
|
(327)
|
(823)
|
(511)
|
(358)
|
428
|
(10,076)
|
|
Share of profit/(loss) in associates and joint
ventures
|
-
|
20
|
406
|
-
|
-
|
2
|
164
|
(1)
|
591
|
|
Profit/(loss) before tax
|
1,829
|
(790)
|
5,451
|
203
|
366
|
193
|
463
|
(420)
|
7,295
|
|
Loans and advances to customers (net)
|
305,503
|
108,308
|
460,790
|
22,835
|
56,528
|
25,113
|
3,809
|
-
|
982,886
|
|
Customer accounts
|
368,585
|
309,673
|
882,380
|
39,935
|
99,160
|
27,235
|
10,262
|
17
|
1,737,247
|
1 In the current period, constant currency
results are equal to reported, as there is no currency
translation.
2 Other trading entities 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
$326m.
3 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
|
Notable items - legal entities (continued)
|
|||||||||
|
|
Quarter ended 30 Sep 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.
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading entities
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals, acquisitions and related costs
|
-
|
(104)
|
-
|
(1)
|
1
|
-
|
-
|
(40)
|
(144)
|
|
Dilution losses of interest in associate
|
-
|
-
|
(2)
|
-
|
-
|
-
|
-
|
34
|
32
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals, acquisitions and related costs
|
-
|
(93)
|
(12)
|
(7)
|
(3)
|
-
|
-
|
(3)
|
(118)
|
|
Restructuring and other related costs1
|
(25)
|
(30)
|
(61)
|
(8)
|
(14)
|
(14)
|
1
|
(6)
|
(157)
|
|
Legal provisions2,3
|
-
|
(1,421)
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,421)
|
1 Amounts relate to restructuring
provisions recognised in 2025 as well as reversals of restructuring
provisions recognised during 2022.
2 During 3Q25, a $0.3bn provision was
recognised in connection with certain historical trading activities
in HSBC Bank plc.
3 During 3Q25, a $1.1bn provision was recognised
in connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
|
Reconciliation of reported results to constant currency results -
legal entities (continued)
|
|||||||||
|
|
Quarter ended 30 Jun 2025
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong andShanghaiBankingCorporationLimited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading entities1
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue2,3
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
3,432
|
2,638
|
7,957
|
635
|
1,148
|
842
|
574
|
(753)
|
16,473
|
|
- Currency translation
|
33
|
22
|
(1)
|
2
|
-
|
40
|
3
|
(11)
|
88
|
|
- Constant currency
|
3,465
|
2,660
|
7,956
|
637
|
1,148
|
882
|
577
|
(764)
|
16,561
|
|
ECL
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
(153)
|
(60)
|
(557)
|
(22)
|
(64)
|
(203)
|
(8)
|
2
|
(1,065)
|
|
- Currency translation
|
(1)
|
(1)
|
1
|
-
|
-
|
(9)
|
-
|
(1)
|
(11)
|
|
- Constant currency
|
(154)
|
(61)
|
(556)
|
(22)
|
(64)
|
(212)
|
(8)
|
1
|
(1,076)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
(1,372)
|
(2,141)
|
(3,765)
|
(328)
|
(860)
|
(499)
|
(369)
|
414
|
(8,920)
|
|
- Currency translation
|
(14)
|
(45)
|
(6)
|
(1)
|
-
|
(24)
|
(1)
|
12
|
(79)
|
|
- Constant currency
|
(1,386)
|
(2,186)
|
(3,771)
|
(329)
|
(860)
|
(523)
|
(370)
|
426
|
(8,999)
|
|
Share of profit/(loss) in associates and joint ventures less
impairment3
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
-
|
43
|
(377)
|
-
|
-
|
2
|
172
|
(2)
|
(162)
|
|
- Currency translation
|
-
|
-
|
(5)
|
-
|
-
|
1
|
(1)
|
1
|
(4)
|
|
- Constant currency
|
-
|
43
|
(382)
|
-
|
-
|
3
|
171
|
(1)
|
(166)
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
1,907
|
480
|
3,258
|
285
|
224
|
142
|
369
|
(339)
|
6,326
|
|
- Currency translation
|
18
|
(24)
|
(11)
|
1
|
-
|
8
|
1
|
1
|
(6)
|
|
- Constant currency
|
1,925
|
456
|
3,247
|
286
|
224
|
150
|
370
|
(338)
|
6,320
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
305,661
|
107,058
|
459,814
|
21,736
|
57,287
|
25,074
|
5,092
|
-
|
981,722
|
|
- Currency translation
|
(5,668)
|
(774)
|
1,238
|
-
|
-
|
741
|
(19)
|
1
|
(4,481)
|
|
- Constant currency
|
299,993
|
106,284
|
461,052
|
21,736
|
57,287
|
25,815
|
5,073
|
1
|
977,241
|
|
Customer accounts
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
371,420
|
306,014
|
871,247
|
35,390
|
96,145
|
27,354
|
11,001
|
33
|
1,718,604
|
|
- Currency translation
|
(6,887)
|
(3,429)
|
2,601
|
-
|
-
|
809
|
9
|
-
|
(6,897)
|
|
- Constant currency
|
364,533
|
302,585
|
873,848
|
35,390
|
96,145
|
28,163
|
11,010
|
33
|
1,711,707
|
1 Other trading entities 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 $354m
and constant currency profit before tax of $356m.
2 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
3 Amounts in 'Revenue' include a loss of
$1.1bn inclusive of reserves recycling as a result of the dilution
of our shareholding in BoCom. We have also recognised a $1.0bn
impairment loss following an impairment test on the carrying value
of the Group's investment in BoCom in 'Share of profit/(loss) in
associates and joint ventures less impairment'.
|
Notable items - legal entities (continued)
|
|||||||||
|
|
Quarter ended 30 Jun 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.
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading entities
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
(42)
|
-
|
-
|
-
|
-
|
-
|
(6)
|
(48)
|
|
Dilution loss of interest in BoCom associate1
|
-
|
-
|
(1,136)
|
-
|
-
|
-
|
-
|
-
|
(1,136)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
1
|
(154)
|
(1)
|
(1)
|
(7)
|
-
|
-
|
(15)
|
(177)
|
|
Restructuring and other related costs2
|
(73)
|
(201)
|
(120)
|
(11)
|
(34)
|
(14)
|
(8)
|
(14)
|
(475)
|
|
Impairment losses of interest in BoCom associate1
|
-
|
-
|
(1,000)
|
-
|
-
|
-
|
-
|
-
|
(1,000)
|
1 Amounts in 'Dilution loss of interest in
BoCom associate' include a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We have also recognised a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in
BoCom in 'Impairment losses of interest in BoCom
associate'.
2 Amounts relate to restructuring
provisions recognised in 2025 as well as reversals of restructuring
provisions recognised during 2022.
|
Reconciliation of reported results to constant currency results -
legal entities (continued)
|
|||||||||
|
|
Quarter ended 30 Sep 2024
|
||||||||
|
|
HSBC UK Bank plc
|
HSBC Bank plc
|
The Hongkong andShanghaiBankingCorporationLimited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading entities1
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue2
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
3,259
|
2,676
|
8,764
|
626
|
901
|
902
|
826
|
(956)
|
16,998
|
|
- Currency translation
|
122
|
127
|
(4)
|
-
|
-
|
15
|
(90)
|
4
|
174
|
|
- Constant currency
|
3,381
|
2,803
|
8,760
|
626
|
901
|
917
|
736
|
(952)
|
17,172
|
|
ECL
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
(173)
|
(3)
|
(536)
|
(32)
|
(19)
|
(213)
|
(12)
|
2
|
(986)
|
|
- Currency translation
|
(7)
|
(1)
|
-
|
1
|
-
|
(3)
|
2
|
(1)
|
(9)
|
|
- Constant currency
|
(180)
|
(4)
|
(536)
|
(31)
|
(19)
|
(216)
|
(10)
|
1
|
(995)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
(1,265)
|
(1,671)
|
(3,573)
|
(263)
|
(859)
|
(477)
|
(519)
|
484
|
(8,143)
|
|
- Currency translation
|
(47)
|
(82)
|
-
|
(1)
|
-
|
(9)
|
70
|
1
|
(68)
|
|
- Constant currency
|
(1,312)
|
(1,753)
|
(3,573)
|
(264)
|
(859)
|
(486)
|
(449)
|
485
|
(8,211)
|
|
Share of profit/(loss) in associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
-
|
(1)
|
457
|
-
|
-
|
4
|
148
|
(1)
|
607
|
|
- Currency translation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- Constant currency
|
-
|
(1)
|
457
|
-
|
-
|
4
|
148
|
(1)
|
607
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
1,821
|
1,001
|
5,112
|
331
|
23
|
216
|
443
|
(471)
|
8,476
|
|
- Currency translation
|
68
|
44
|
(4)
|
-
|
-
|
3
|
(18)
|
4
|
97
|
|
- Constant currency
|
1,889
|
1,045
|
5,108
|
331
|
23
|
219
|
425
|
(467)
|
8,573
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
289,424
|
112,275
|
460,717
|
20,697
|
56,382
|
24,412
|
4,745
|
1
|
968,653
|
|
- Currency translation
|
1,580
|
3,871
|
(4,998)
|
4
|
-
|
1,798
|
(246)
|
-
|
2,009
|
|
- Constant currency
|
291,004
|
116,146
|
455,719
|
20,701
|
56,382
|
26,210
|
4,499
|
1
|
970,662
|
|
Customer accounts
|
|
|
|
|
|
|
|
|
|
|
- Reported
|
357,874
|
298,583
|
835,925
|
33,543
|
98,379
|
26,655
|
9,731
|
25
|
1,660,715
|
|
- Currency translation
|
1,954
|
6,648
|
(6,836)
|
13
|
-
|
1,962
|
(482)
|
2
|
3,261
|
|
- Constant currency
|
359,828
|
305,231
|
829,089
|
33,556
|
98,379
|
28,617
|
9,249
|
27
|
1,663,976
|
1 Other trading entities 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 $365m
and constant currency profit before tax of $356m.
2 Net operating income before change in
expected credit losses and other credit impairment charges, also
referred to as revenue.
|
Notable items - legal entities (continued)
|
|||||||||
|
|
Quarter ended 30 Sep 2024
|
||||||||
|
|
HSBC UK Bank Plc
|
HSBC Bank Plc
|
The Hongkong and Shanghai Banking Corporation Limited
|
HSBC Bank Middle East Limited
|
HSBC North America Holdings Inc.
|
GrupoFinancieroHSBC, S.A.de C.V.
|
Other trading entities
|
Holdingcompanies,sharedservicecentres
andintra-groupeliminations
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
3
|
-
|
-
|
-
|
-
|
(6)
|
75
|
72
|
|
Early redemption of legacy securities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(283)
|
(283)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Disposals, wind-downs, acquisitions and related costs
|
-
|
-
|
-
|
-
|
(6)
|
-
|
(30)
|
(12)
|
(48)
|
|
Restructuring and other related costs1
|
1
|
-
|
-
|
2
|
-
|
-
|
-
|
-
|
3
|
1 Amounts relate to reversals of
restructuring provisions recognised during 2022.
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 6.
|
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 and notable items
|
|
|||
|
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 14.
|
Constant currency revenue and profit before tax excluding notable
items and strategic transactions
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Revenue
|
|
|
|
|
|
|
Reported
|
51,910
|
54,290
|
17,788
|
16,473
|
16,998
|
|
Notable items
|
1,387
|
(3,360)
|
112
|
1,184
|
211
|
|
Reported revenue excluding notable items
|
53,297
|
50,930
|
17,900
|
17,657
|
17,209
|
|
Currency translation1
|
|
(57)
|
-
|
94
|
171
|
|
Constant currency revenue excluding notable items
|
53,297
|
50,873
|
17,900
|
17,751
|
17,380
|
|
Constant currency impact of strategic transactions (distorting
impact of operating results between periods)2
|
-
|
(964)
|
-
|
-
|
(142)
|
|
Constant currency revenue excluding notable items and strategic
transactions
|
53,297
|
49,909
|
17,900
|
17,751
|
17,238
|
|
Profit before tax
|
|
|
|
|
|
|
Reported
|
23,105
|
30,032
|
7,295
|
6,326
|
8,476
|
|
Notable items
|
4,926
|
(3,233)
|
1,808
|
2,836
|
256
|
|
Reported profit before tax excluding notable items
|
28,031
|
26,799
|
9,103
|
9,162
|
8,732
|
|
Currency translation1
|
|
26
|
-
|
23
|
86
|
|
Constant currency profit before tax excluding notable
items
|
28,031
|
26,825
|
9,103
|
9,185
|
8,818
|
|
Constant currency impact of strategic transactions (distorting
impact of operating results between periods)2
|
-
|
(329)
|
-
|
-
|
(9)
|
|
Constant currency profit before tax excluding notable items and
strategic transactions
|
28,031
|
26,496
|
9,103
|
9,185
|
8,809
|
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 31.
|
Return on average ordinary shareholders' equity, return on average
tangible equity and return on average tangible equity excluding
notable items
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Profit after tax
|
|
|
|
|
|
|
Profit attributable to the ordinary shareholders of the parent
company
|
16,383
|
22,720
|
4,873
|
4,578
|
6,134
|
|
Impairment of goodwill and other intangible assets (net of
tax)
|
64
|
114
|
40
|
24
|
(9)
|
|
Profit attributable to the ordinary shareholders, excluding
goodwill and other intangible assets impairment
|
16,447
|
22,834
|
4,913
|
4,602
|
6,125
|
|
Impact of notable items1
|
4,441
|
(3,442)
|
1,727
|
2,498
|
184
|
|
Profit attributable to the ordinary shareholders, excluding
goodwill, other intangible assets impairment and notable
items
|
20,888
|
19,392
|
6,640
|
7,100
|
6,309
|
|
Equity
|
|
|
|
|
|
|
Average total shareholders' equity
|
189,942
|
188,140
|
191,992
|
191,682
|
188,023
|
|
Effect of average preference shares and other equity
instruments
|
(19,805)
|
(18,333)
|
(20,716)
|
(19,717)
|
(18,947)
|
|
Average ordinary shareholders' equity
|
170,137
|
169,807
|
171,276
|
171,965
|
169,076
|
|
Effect of goodwill and other intangibles (net of deferred
tax)
|
(11,961)
|
(11,631)
|
(12,272)
|
(11,988)
|
(11,582)
|
|
Average tangible equity
|
158,176
|
158,176
|
159,004
|
159,977
|
157,494
|
|
Average impact of notable items
|
696
|
(3,035)
|
2,099
|
1,308
|
110
|
|
Average tangible equity excluding notable items
|
158,872
|
155,141
|
161,103
|
161,285
|
157,604
|
|
Ratio
|
%
|
%
|
%
|
%
|
%
|
|
Return on average ordinary shareholders' equity
(annualised)
|
12.9
|
17.9
|
11.3
|
10.7
|
14.4
|
|
Return on average tangible equity (annualised)
|
13.9
|
19.3
|
12.3
|
11.5
|
15.5
|
|
Return on average tangible equity excluding notable items
(annualised)
|
17.6
|
16.7
|
16.4
|
17.7
|
15.9
|
1 For details of notable items please refer
to pages 27 and 28.
|
Return on average tangible equity by business segment
|
||||||
|
|
Nine months ended 30 Sep 2025
|
|||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Profit before tax
|
7,125
|
4,923
|
8,909
|
3,384
|
(1,236)
|
23,105
|
|
Tax expense
|
(1,321)
|
(1,360)
|
(1,959)
|
(724)
|
203
|
(5,161)
|
|
Profit after tax
|
5,804
|
3,563
|
6,950
|
2,660
|
(1,033)
|
17,944
|
|
Less attributable to: preference shareholders, other equity
holders, non-controlling interests
|
(661)
|
(160)
|
(393)
|
(182)
|
(165)
|
(1,561)
|
|
Profit attributable to ordinary shareholders of the parent
company
|
5,143
|
3,403
|
6,557
|
2,479
|
(1,199)
|
16,383
|
|
Other adjustments
|
249
|
165
|
(126)
|
(34)
|
(190)
|
64
|
|
Profit attributable to ordinary shareholders
|
5,393
|
3,568
|
6,431
|
2,445
|
(1,390)
|
16,447
|
|
Impact of notable items
|
7
|
44
|
596
|
261
|
3,533
|
4,441
|
|
Profit attributable to ordinary shareholders excluding notable
items
|
5,400
|
3,612
|
7,027
|
2,706
|
2,143
|
20,888
|
|
Average tangible shareholders' equity
|
20,870
|
20,661
|
55,490
|
18,325
|
42,830
|
158,176
|
|
Average impact of notable items
|
28
|
28
|
315
|
84
|
241
|
696
|
|
Average tangible equity excluding notable items
|
20,898
|
20,689
|
55,805
|
18,409
|
43,071
|
158,872
|
|
RoTE (%) (annualised)
|
34.5
|
23.1
|
15.5
|
17.8
|
(4.3)
|
13.9
|
|
RoTE (%), excluding notable items (annualised)
|
34.5
|
23.3
|
16.8
|
19.7
|
6.7
|
17.6
|
|
|
||||||
|
|
Nine months ended 30 Sep 2024
|
|||||
|
Profit before tax
|
6,959
|
5,096
|
9,284
|
3,471
|
5,222
|
30,032
|
|
Tax expense
|
(1,019)
|
(1,410)
|
(2,223)
|
(660)
|
(306)
|
(5,618)
|
|
Profit after tax
|
5,939
|
3,686
|
7,061
|
2,812
|
4,916
|
24,414
|
|
Less attributable to: preference shareholders, other equity
holders, non-controlling interests
|
(760)
|
(160)
|
(480)
|
(153)
|
(141)
|
(1,694)
|
|
Profit attributable to ordinary shareholders of the parent
company
|
5,179
|
3,526
|
6,581
|
2,659
|
4,775
|
22,720
|
|
Other adjustments
|
187
|
162
|
(362)
|
(50)
|
177
|
114
|
|
Profit attributable to ordinary shareholders
|
5,366
|
3,688
|
6,218
|
2,609
|
4,953
|
22,834
|
|
Impact of notable items
|
-
|
(6)
|
7
|
(56)
|
(3,387)
|
(3,442)
|
|
Profit attributable to ordinary shareholders excluding notable
items
|
5,366
|
3,682
|
6,225
|
2,553
|
1,566
|
19,392
|
|
Average tangible shareholders' equity
|
19,205
|
18,849
|
54,859
|
19,096
|
46,167
|
158,176
|
|
Average impact of notable items
|
(10)
|
(423)
|
(39)
|
14
|
(2,577)
|
(3,035)
|
|
Average tangible equity excluding notable items
|
19,195
|
18,426
|
54,820
|
19,110
|
43,590
|
155,141
|
|
RoTE (%) (annualised)
|
37.3
|
26.1
|
15.1
|
18.2
|
14.3
|
19.3
|
|
RoTE (%), excluding notable items (annualised)
|
37.3
|
26.7
|
15.2
|
17.8
|
4.8
|
16.7
|
|
Net asset value and tangible net asset value per ordinary
share
|
|||
|
|
At
|
||
|
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
|
Total shareholders' equity
|
191,430
|
192,554
|
192,754
|
|
Preference shares and other equity instruments
|
(20,716)
|
(20,716)
|
(19,070)
|
|
Total ordinary shareholders' equity
|
170,714
|
171,838
|
173,684
|
|
Goodwill and intangible assets (net of deferred tax)
|
(12,263)
|
(12,281)
|
(11,804)
|
|
Tangible ordinary shareholders' equity
|
158,451
|
159,557
|
161,880
|
|
Basic number of $0.50 ordinary shares outstanding, after deducting
own shares held (millions)
|
17,183
|
17,397
|
17,982
|
|
Value per share
|
$
|
$
|
$
|
|
Net asset value per ordinary share
|
9.94
|
9.88
|
9.66
|
|
Tangible net asset value per ordinary share
|
9.22
|
9.17
|
9.00
|
|
|
|
|
|
|
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
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Expected credit losses and other credit impairment charges
('ECL')
|
(2,949)
|
(2,052)
|
(1,008)
|
(1,065)
|
(986)
|
|
Currency translation
|
-
|
64
|
-
|
(11)
|
(9)
|
|
Constant currency
|
(2,949)
|
(1,988)
|
(1,008)
|
(1,076)
|
(995)
|
|
Average gross loans and advances to customers
|
970,109
|
955,512
|
992,630
|
973,333
|
964,189
|
|
Currency translation
|
15,791
|
19,234
|
(2,230)
|
11,533
|
16,329
|
|
Constant currency
|
985,900
|
974,746
|
990,400
|
984,866
|
980,518
|
|
Average gross loans and advances to customers, including held for
sale
|
971,947
|
975,646
|
995,193
|
975,048
|
966,713
|
|
Currency translation
|
15,841
|
18,410
|
(2,219)
|
11,582
|
15,814
|
|
Constant currency
|
987,788
|
994,056
|
992,974
|
986,630
|
982,527
|
|
|
|
|
|
|
|
|
Ratios
|
%
|
%
|
%
|
%
|
%
|
|
Expected credit losses and other credit impairment charges
(annualised) as a % of average gross loans and advances to
customers (%)
|
0.40
|
0.27
|
0.40
|
0.44
|
0.40
|
|
Expected credit losses and other credit impairment charges
(annualised) as a % of average gross loans and advances to
customers, including held for sale (%)
|
0.40
|
0.27
|
0.40
|
0.44
|
0.40
|
|
Target basis operating expenses
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Reported operating expenses
|
27,098
|
24,439
|
10,076
|
8,920
|
8,143
|
|
Notable items
|
(2,539)
|
(127)
|
(1,696)
|
(652)
|
(45)
|
|
- disposals, wind-downs, acquisitions and related
costs
|
(345)
|
(149)
|
(118)
|
(177)
|
(48)
|
|
- restructuring and other related costs1
|
(773)
|
22
|
(157)
|
(475)
|
3
|
|
- legal provisions2,
3
|
(1,421)
|
-
|
(1,421)
|
-
|
-
|
|
Currency translation4
|
-
|
(24)
|
-
|
67
|
76
|
|
Excluding the constant currency impact of the sale of our business
in Argentina and banking business in Canada5
|
-
|
(462)
|
-
|
-
|
(90)
|
|
Excluding the impact of retranslating prior period costs of
hyperinflationary economies at constant currency foreign exchange
rate
|
-
|
39
|
-
|
3
|
15
|
|
Target basis operating expenses
|
24,559
|
23,865
|
8,380
|
8,338
|
8,099
|
1 Amounts relate to restructuring
provisions recognised in 2024 and 2025 and reversals of
restructuring provisions recognised during 2022.
2 During 3Q25, a $0.3bn provision was
recognised in connection with certain historical trading activities
in HSBC Bank plc.
3 During 3Q25, a $1.1bn provision was recognised
in connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
4 Currency translation on reported
operating expenses, excluding currency translation on notable
items.
5 This represents the business as usual
costs which are not classified as notable items relating to our
business in Argentina and banking business in Canada, on a constant
currency basis. This does not include the disposal costs which
relate to these transactions.
|
Basic earnings per share excluding material notable items and
related impacts
|
|||||
|
|
Nine months ended
|
Quarter ended
|
|||
|
|
30 Sep 2025
|
30 Sep 2024
|
30 Sep 2025
|
30 Jun 2025
|
30 Sep 2024
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Profit attributable to shareholders of company
|
17,341
|
23,628
|
5,284
|
4,733
|
6,516
|
|
Coupon payable on capital securities classified as
equity
|
(958)
|
(908)
|
(411)
|
(155)
|
(382)
|
|
Profit attributable to ordinary shareholders of
company
|
16,383
|
22,720
|
4,873
|
4,578
|
6,134
|
|
Dilution and impairment losses of interest in
associate
|
1,956
|
-
|
(32)
|
1,988
|
-
|
|
Legal provisions2
|
1,100
|
-
|
1,100
|
-
|
-
|
|
Impact of disposals, wind-downs, acquisitions and related
costs
|
507
|
(3,848)
|
224
|
215
|
(36)
|
|
- of which: impact of the sale of our banking business in
Canada1
|
1
|
(4,953)
|
2
|
1
|
(4)
|
|
- of which: impact of the sale of our business in
Argentina
|
97
|
1,162
|
(1)
|
28
|
(30)
|
|
- of which: other strategic transactions3
|
409
|
(57)
|
223
|
186
|
(2)
|
|
Profit attributable to ordinary shareholders of company excluding
material notable items and related impacts
|
19,946
|
18,872
|
6,165
|
6,781
|
6,098
|
|
|
|
|
|
|
|
|
Number of shares
|
|
|
|
|
|
|
Weighted average basic number of ordinary shares after deducting
own shares held (millions)
|
17,529
|
18,493
|
17,297
|
17,528
|
18,151
|
|
Basic earnings per share ($)
|
0.93
|
1.23
|
0.28
|
0.26
|
0.34
|
|
Basic earnings per share excluding material notable items and
related impacts ($)
|
1.14
|
1.02
|
0.36
|
0.39
|
0.34
|
1 Represents gain on sale of our banking
business in Canada recognised on completion, inclusive of the
earnings recognised by the banking business from 30 June 2022, the
recycling of losses in foreign currency translation reserves and
other reserves, and gain on the foreign exchange hedging of the
sale proceeds.
2 During 3Q25, a $1.1bn provision was recognised
in connection with a claim brought by Herald Fund SPC in the
Luxembourg District Court, relating to the Bernard L. Madoff
Investment Securities LLC fraud. See page 17,
'Events after the balance sheet date'.
3 For the nine months ended 30 September
2025, this includes a $0.2bn impact from the sale of our French and
UK life insurance businesses and $0.1bn from the sale of our
private banking, custody and fund administration businesses in
Germany.
Risk
Managing risk
Economic, financial and geopolitical developments have historically
affected, and may in the future materially affect, HSBC's
customers, operations and financial risk profile. We maintain a
proactive approach to managing our exposure to these risks,
supported by continuous monitoring and review.
In the first nine months of 2025, the global economy showed
resilience and continued to grow despite unpredictable US trade
policies, heightened geopolitical tensions and increased fiscal
concerns in developed markets. Global GDP growth exceeded
expectations, driven by export growth, related to front-loading of
purchases to avoid US tariffs and a weaker US dollar, as well as
government spending. Household consumption was more subdued due to
weak confidence, higher unemployment and inflation concerns. US
economic data was affected by tariffs and other domestic policies,
but US GDP growth outperformed initial forecasts. In mainland China
and Hong Kong, exports to markets in Asia and Latin America offset
some of the impact of US tariffs, while supportive fiscal and
monetary policies continued to underpin growth.
Trade and tariff policies are expected to remain a source of
uncertainty for businesses and consumers, and economic forecasts
predict only moderate rates of growth in our main markets in 2026.
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.
Although the reconfiguration of supply chains may offer new
opportunities for investment and growth, such developments could
also adversely affect the Group and our customers who operate in
some of the most affected markets.
Despite heightened economic and policy uncertainty, financial
markets have seen significant valuation gains, including in the
artificial intelligence ('AI') and technology sectors. AI and the
surge in related investment may lead to future gains to
productivity and growth, but current high valuations raise the risk
of a disruptive correction that could impact economic growth, which
may in turn have an adverse effect on HSBC's risk profile and
earnings.
We also remain subject to interest rate risk, which can affect net
interest income, the fair value of our assets and liabilities, and
overall financial performance.
In Hong Kong, our operations have been and continue to be exposed
to fluctuations in HIBOR, which has experienced heightened
volatility due to changing corporate cash demands and changing
investor risk appetite.
Major central banks have adjusted their policy approach in response
to changing inflation and employment risks. The US Federal Reserve
resumed its cycle of interest rate cuts in September 2025, after it
assessed tariff-related inflation risks as transitory but labour
market risks as having increased. The target range for the Federal
Funds rate is now 4%-4.25% with markets anticipating further cuts
before the year-end. In the UK, the Bank of England has expressed
increasing concern about the inflation outlook and has signalled
its intention to pause further interest rate cuts over the
remainder of 2025.
Although financial markets have priced in further interest rate
cuts, there is uncertainty around their future trajectory. Policy
rates could be raised if inflation were to accelerate significantly
beyond central bank target ranges. Higher interest rates may reduce
loan demand across key consumer and business segments, which could
lead to a deterioration in credit quality and weigh on real estate
and other asset prices. By contrast, lower interest rates could
pressure net interest margins and adversely affect
profitability.
Our risk profile may be influenced by fiscal policies, public
deficits and levels of indebtedness. In several developed markets,
government debt levels are rising due to rising social welfare
costs and increased expenditure on defence and climate transition.
A fragmented political landscape in many markets has diminished the
political will for fiscal tightening. Rising 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 key markets could reduce the potential
for GDP growth by raising 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.
The geopolitical environment remains complex, and tensions could
impact the Group's operations and risk profile. We continue to
monitor the ongoing Russia-Ukraine war and developments in relation
to the conflict in the Middle East, which remain key sources of
uncertainty, and may impact HSBC and our customers, including
through increased market volatility and supply chain disruptions.
Heightened strategic competition between the US and China is also
affecting the configuration of global supply chains, which may in
turn affect the Group's operations.
Existing and additional sanctions, trade restrictions,
counter-sanctions and other retaliatory measures relating to
geopolitical tensions may adversely affect the Group, its customers
and the markets in which the Group operates.
Commercial real estate conditions remain challenging in Hong Kong
and mainland China. In Hong Kong, weak demand and over-supply of
non-residential properties continued to put downward pressure on
rental and capital values, despite an observed improvement in local
sentiment, particularly in the residential market. In mainland
China, government stimulus has yet to trigger a material
improvement in buyer sentiment.
In the third quarter of 2025, management adjustments to ECL were
applied to reflect sector or portfolio risks that are not fully
captured by our models. We continue to monitor, and seek to manage,
the potential implications of all the above developments on our
customers and our business.
At 30 September 2025 our CET1 ratio decreased to 14.5% from
14.6% at 30 June 2025, and our LCR was 139%, down from 140% at 30
June 2025.
uFor further
details of our Central and other economic scenarios, see
page 46.
uFor further
details on our CET1 ratio, see 'Capital risk' on
page 53.
Credit risk
Summary of credit risk
At 30 September 2025, gross loans and advances to customers of
$993bn were $53bn higher on a reported basis compared with 31
December 2024. This included total favourable foreign exchange
movements of $40.1bn.
On a constant currency basis, the increase of $12.9bn was driven by
higher balances in our UK business segment (up $13.0bn), in IWPB
(up $7.1bn) and CIB (up $5.6bn). This was partly offset by
decreases in our Hong Kong business segment (down $4.8bn) and
Corporate Centre (down $7.9bn).
In our UK business, the increase was primarily driven by continued
growth in mortgage balances (up $6.1bn), as well as growth in
commercial customer lending (up $5.7bn).
The increase in IWPB was driven by higher 'Other personal lending'
Private Banking balances in our entities in Asia.
The increase in CIB was driven by higher balances in our entities
in Asia, the Middle East and Europe across several
industries.
The decrease in our Hong Kong business was primarily driven by
lower commercial customer lending, reflecting muted customer
demand.
The decrease in Corporate Centre was driven by the reclassification
to 'Assets held for sale' of our retained portfolio of home and
other loans associated with the sale of our retail banking
operations in France.
There was an increase in stage 2 loans and advances to banks and
customers of $10.0bn on a constant currency basis. This was mainly
driven by updates to our wholesale probability of default ('PD')
models at 2Q25, which resulted in a shift of balances between stage
1 and 2, mainly in Asia. The balances transferred to stage 2
consisted of up-to-date loans mainly in the 'Good' and
'Satisfactory' credit quality buckets.
At 30 September 2025, the allowance for ECL of $11.1bn comprised
$10.6bn in respect of assets held at amortised cost, $0.4bn in
respect of loan commitments and financial guarantees, and $0.1bn in
respect of debt instruments measured at FVOCI.
On a constant currency basis, the allowance for ECL in relation to
loans and advances to customers increased by $0.4bn, mainly due to
increases in stage 3.
The ECL charge for the first nine months of 2025 was $2.9bn (9M24:
$2.1bn), inclusive of recoveries. It comprised: $1.2bn in respect
of the Hong Kong business segment; $0.6bn in respect of the UK
business segment; $0.5bn in respect of CIB; and $0.7bn in respect
of IWPB.
For further details on ECL charges in each of our business
segments, see pages 18 and 44.
ECL charges in the mainland China CRE sector were immaterial in
9M25. ECL charges in the Hong Kong CRE sector (excluding exposure
to mainland China borrowers) were $0.2bn in 3Q25 and $0.7bn in
9M25. This reflected updates to our models used for ECL
calculations, an increase in allowances for new defaulted
exposures, as well as continued negative migration in the portfolio
as market conditions remained challenging.
|
Summary of financial instruments to which the impairment
requirements in IFRS 9 are applied - by business segment at 30
September 2025
|
||||||||||||
|
|
Gross carrying/nominal amount
|
Allowance for ECL1
|
||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Loans and advances to customers at amortised cost
|
233,366
|
301,492
|
306,090
|
152,243
|
203
|
993,394
|
(3,792)
|
(2,049)
|
(3,035)
|
(1,588)
|
(44)
|
(10,508)
|
|
Loans and advances to banks at amortised cost
|
15,966
|
6,674
|
61,736
|
16,737
|
4,098
|
105,211
|
-
|
(2)
|
(4)
|
(2)
|
(1)
|
(9)
|
|
Other financial assets measured at amortised cost
|
53,096
|
106,546
|
605,399
|
60,592
|
68,384
|
894,017
|
(26)
|
(24)
|
(67)
|
(33)
|
-
|
(150)
|
|
- cash and balances at central banks
|
7,382
|
51,626
|
168,806
|
18,303
|
704
|
246,821
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- Hong Kong Government certificates of
indebtedness
|
-
|
-
|
-
|
-
|
43,549
|
43,549
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- reverse repurchase agreements - non-trading
|
2,314
|
26,840
|
242,873
|
5,222
|
1,366
|
278,615
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- financial investments
|
34,659
|
24,187
|
64,380
|
27,565
|
19,063
|
169,854
|
(2)
|
(1)
|
(4)
|
(4)
|
-
|
(11)
|
|
- assets held for sale2
|
-
|
11
|
2,546
|
2,893
|
5
|
5,455
|
-
|
-
|
(14)
|
(19)
|
-
|
(33)
|
|
- other assets3
|
8,741
|
3,882
|
126,794
|
6,609
|
3,697
|
149,723
|
(24)
|
(23)
|
(49)
|
(10)
|
-
|
(106)
|
|
Total on-balance sheet
|
302,428
|
414,712
|
973,225
|
229,572
|
72,685
|
1,992,622
|
(3,818)
|
(2,075)
|
(3,106)
|
(1,623)
|
(45)
|
(10,667)
|
|
Loan and other credit-related commitments
|
113,702
|
103,840
|
382,375
|
122,077
|
236
|
722,230
|
(26)
|
(93)
|
(205)
|
(5)
|
-
|
(329)
|
|
Financial guarantees
|
777
|
1,138
|
13,151
|
1,774
|
-
|
16,840
|
(1)
|
(14)
|
(36)
|
(1)
|
-
|
(52)
|
|
Total off-balance
sheet4
|
114,479
|
104,978
|
395,526
|
123,851
|
236
|
739,070
|
(27)
|
(107)
|
(241)
|
(6)
|
-
|
(381)
|
|
At 30 Sep 2025
|
416,907
|
519,690
|
1,368,751
|
353,423
|
72,921
|
2,731,692
|
(3,845)
|
(2,182)
|
(3,347)
|
(1,629)
|
(45)
|
(11,048)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
139,561
|
29,710
|
169,911
|
60,449
|
7,633
|
407,264
|
(2)
|
(1)
|
(18)
|
(13)
|
(17)
|
(51)
|
|
Summary of financial instruments to which the impairment
requirements in IFRS 9 are applied - by business segment at 31
December 2024 (continued)
|
||||||||||||
|
|
Gross carrying/nominal amount
|
Allowance for ECL1
|
||||||||||
|
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
|
Hong Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
Loans and advances to customers at amortised cost
|
238,416
|
269,141
|
287,842
|
137,789
|
7,185
|
940,373
|
(3,208)
|
(1,848)
|
(3,141)
|
(1,464)
|
(54)
|
(9,715)
|
|
Loans and advances to banks at amortised cost
|
13,034
|
7,505
|
63,524
|
15,713
|
2,276
|
102,052
|
(1)
|
(2)
|
(7)
|
(1)
|
(2)
|
(13)
|
|
Other financial assets measured at amortised cost
|
52,869
|
100,322
|
553,664
|
58,713
|
63,012
|
828,580
|
(25)
|
(9)
|
(39)
|
(19)
|
-
|
(92)
|
|
- cash and balances at central banks
|
5,565
|
63,981
|
177,095
|
20,260
|
773
|
267,674
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- Hong Kong Government certificates of
indebtedness
|
-
|
-
|
-
|
-
|
42,293
|
42,293
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- reverse repurchase agreements - non-trading
|
2,896
|
13,188
|
229,672
|
5,844
|
949
|
252,549
|
-
|
-
|
-
|
-
|
-
|
-
|
|
- financial investments
|
40,345
|
20,072
|
56,537
|
25,059
|
11,969
|
153,982
|
(1)
|
(1)
|
(4)
|
(3)
|
-
|
(9)
|
|
- assets held for sale2
|
-
|
5
|
670
|
2,595
|
3
|
3,273
|
-
|
-
|
(4)
|
-
|
-
|
(4)
|
|
- other assets3
|
4,063
|
3,076
|
89,690
|
4,955
|
7,025
|
108,809
|
(24)
|
(8)
|
(31)
|
(16)
|
-
|
(79)
|
|
Total on-balance sheet
|
304,319
|
376,968
|
905,030
|
212,215
|
72,473
|
1,871,005
|
(3,234)
|
(1,859)
|
(3,187)
|
(1,484)
|
(56)
|
(9,820)
|
|
Loan and other credit-related commitments
|
109,369
|
90,848
|
307,197
|
111,762
|
191
|
619,367
|
(29)
|
(116)
|
(187)
|
(16)
|
-
|
(348)
|
|
Financial guarantees
|
1,171
|
939
|
13,186
|
1,702
|
-
|
16,998
|
(2)
|
(3)
|
(24)
|
-
|
-
|
(29)
|
|
Total off-balance sheet4
|
110,540
|
91,787
|
320,383
|
113,464
|
191
|
636,365
|
(31)
|
(119)
|
(211)
|
(16)
|
-
|
(377)
|
|
At 31 Dec 2024
|
414,859
|
468,755
|
1,225,413
|
325,679
|
72,664
|
2,507,370
|
(3,265)
|
(1,978)
|
(3,398)
|
(1,500)
|
(56)
|
(10,197)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
128,568
|
26,405
|
137,538
|
51,516
|
2,097
|
346,124
|
(1)
|
(1)
|
(18)
|
(14)
|
(20)
|
(54)
|
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 30 September 2025, the gross carrying
amount comprised $3.4bn of loans and advances to customers and
banks (31 December 2024: $1.1bn) and $2.1bn of other financial
assets at amortised cost (31 December 2024: $2.1bn). This included
the planned sales of our private banking and custody businesses in
Germany ($2.1bn, 31 December 2024: $2.2bn); our business in Uruguay
($1.8bn, 31 December 2024: nil); our business in South Africa
($0.7bn, 31 December 2024: $0.4bn); and our French life insurance
business ($0.3bn, 31 December 2024: $0.4bn). The corresponding
allowance for ECL comprised $33m of loans and advances to customers
and banks (31 December 2024: $4m).
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 15 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
|
|
Nine months ended 30 Sep 2025
|
(1,168)
|
(594)
|
(463)
|
(657)
|
(67)
|
(2,949)
|
|
Nine months ended 30 Sep 2024
|
(720)
|
(232)
|
(345)
|
(728)
|
(27)
|
(2,052)
|
|
Summary of credit risk (excluding debt instruments measured at
FVOCI) by stage distribution and ECL coverage at 30 September
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
|
860,527
|
107,994
|
24,563
|
310
|
993,394
|
(1,152)
|
(2,621)
|
(6,659)
|
(76)
|
(10,508)
|
0.1
|
2.4
|
27.1
|
24.5
|
1.1
|
|
Loans and advances to banks at amortised cost
|
105,062
|
146
|
3
|
-
|
105,211
|
(4)
|
(2)
|
(3)
|
-
|
(9)
|
-
|
1.4
|
100.0
|
-
|
-
|
|
Other financial assets measured at amortised cost
|
892,323
|
1,498
|
195
|
1
|
894,017
|
(91)
|
(10)
|
(49)
|
-
|
(150)
|
-
|
0.7
|
25.1
|
-
|
-
|
|
Loan and other credit-related commit-ments
|
698,569
|
22,705
|
952
|
4
|
722,230
|
(141)
|
(103)
|
(85)
|
-
|
(329)
|
-
|
0.5
|
8.9
|
-
|
-
|
|
Financial guarantees
|
15,107
|
1,513
|
220
|
-
|
16,840
|
(7)
|
(8)
|
(37)
|
-
|
(52)
|
-
|
0.5
|
16.8
|
-
|
0.3
|
|
At 30 Sep 20253
|
2,571,588
|
133,856
|
25,933
|
315
|
2,731,692
|
(1,395)
|
(2,744)
|
(6,833)
|
(76)
|
(11,048)
|
0.1
|
2.0
|
26.3
|
24.1
|
0.4
|
|
Summary of credit risk (excluding debt instruments measured at
FVOCI) by stage distribution and ECL coverage at 31 December
2024
|
|||||||||||||||
|
|
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
|
824,420
|
93,248
|
22,615
|
90
|
940,373
|
(1,078)
|
(2,546)
|
(6,040)
|
(51)
|
(9,715)
|
0.1
|
2.7
|
26.7
|
56.7
|
1.0
|
|
Loans and advances to banks at amortised cost
|
101,852
|
198
|
2
|
-
|
102,052
|
(9)
|
(2)
|
(2)
|
-
|
(13)
|
-
|
1.0
|
100.0
|
-
|
-
|
|
Other financial assets measured at amortised cost
|
826,621
|
1,806
|
153
|
-
|
828,580
|
(64)
|
(5)
|
(23)
|
-
|
(92)
|
-
|
0.3
|
15.0
|
-
|
-
|
|
Loan and other credit-related commit-ments
|
597,231
|
21,175
|
958
|
3
|
619,367
|
(137)
|
(121)
|
(90)
|
-
|
(348)
|
-
|
0.6
|
9.4
|
-
|
0.1
|
|
Financial guarantees
|
15,353
|
1,397
|
248
|
-
|
16,998
|
(8)
|
(5)
|
(16)
|
-
|
(29)
|
0.1
|
0.4
|
6.5
|
-
|
0.2
|
|
At Dec 2024
|
2,365,477
|
117,824
|
23,976
|
93
|
2,507,370
|
(1,296)
|
(2,679)
|
(6,171)
|
(51)
|
(10,197)
|
0.1
|
2.3
|
25.7
|
54.8
|
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 The shift of 'gross carrying amount'
between stage 1 and 2 arose mainly in Asia from higher average PD
for the remaining term at the reporting date, reflecting updates to
our PD models and ongoing market challenges. PDs at the reporting
date were compared with the PD calculated at
origination.
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 discussed key risks before selecting
the economic scenarios and their weightings.
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 30 September 2025, four economic scenarios were used to capture
the latest economic expectations and to articulate management's
view of the range of risks and potential outcomes. In each quarter,
scenarios are updated with the latest economic forecasts and
distributional estimates. Three scenarios - the Upside, Central and
Downside - are drawn from external consensus forecasts, market data
and distributional estimates of the entire range of economic
outcomes. The fourth scenario, the Downside 2, represents
management's view of severe downside risks.
Scenarios produced to calculate ECL are aligned to HSBC's top and
emerging risks.
Description of economic scenarios
The Central scenario reflects the expectation of lower average GDP
growth in the US, UK and other key markets in 2025-2026, relative
to the fourth quarter of 2024. The weaker outlook incorporates the
impact of higher US tariff rates and increased policy uncertainty
on future global trade volumes, investment spending and employment.
The scenario is consistent with a US tariff
rate, measured
as an effective trade-weighted average, of 18% at the end of 2025.
It includes the higher reciprocal tariff rates that were
implemented following the end of the temporary pause in the third
quarter of 2025, the suspension of higher tariff rates with
mainland China and the trade agreements the US has concluded with
key partners.
However, forecasts have improved relative to the fourth quarter of
2024 for mainland China and Hong Kong, when projections were
weighed down by expectations of a sharper escalation in US tariffs.
For the third quarter of 2025, strong fiscal support, more
accommodative monetary conditions and ongoing trade redirection
have increased confidence that these economies can avoid a
significant downturn.
Risks to the Central scenario outlook are captured in the outer
scenarios. The key sources of forecast risk and uncertainty in the
third quarter of 2025 include trade policies and the rates at which
future tariffs are levied, geopolitical tensions, inflation and the
outlook for monetary policy.
Outer scenarios for most markets are configured as demand side
shocks, but the approach may vary depending on the risk profile of
each country. To the downside, scenarios explore the
intensification and crystallisation of key risk themes and are
modelled so that economic shocks drive consumption and investment
lower and commodity prices fall. For most markets, inflation and
interest rates are lower compared with the Central scenario. That
narrative is disrupted in the US and Mexico as higher tariff rates
and other countermeasures are assumed to drive a broad increase in
import prices. In the Upside scenario, stronger economic growth and
demand cause a temporary acceleration of inflation.
The four global scenarios used for calculating ECL at 30 September
2025 were:
- The
consensus Central scenario: This scenario features slower global
growth in the near term due to greater policy uncertainty, the
implementation of higher tariffs as well as underlying structural
weakness in some economies, before a gradual improvement over the
remainder of the forecast horizon. Unemployment is forecast to rise
gradually in many markets amid weaker economic activity and subdued
business confidence, but is expected to remain relatively low by
historic standards. The evolution of inflation is more mixed by
market. In the US and UK, inflation is expected to stay above
central bank target rates, reflecting higher tariffs in the US and
the effects of services and food price inflation in the UK. In Hong
Kong and mainland China, inflation is expected to remain subdued
due to continued weakness in domestic demand and strong
manufacturing growth in mainland China. Central banks are forecast
to gradually cut policy interest rates, but they are expected to
remain at a higher level than in recent years over the long
term.
- The
consensus Upside scenario: This scenario incorporates a partial
rollback of tariff measures, deregulation and a de-escalation of
geopolitical tensions as the Russia-Ukraine war moves towards a
conclusion and conflict resolution in the Middle East is
accelerated. An improvement in the US-China relationship is also
assumed. In the scenario, growth accelerates, unemployment is lower
and asset prices rise above the Central scenario. Inflation
accelerates modestly, driven by increased investment and higher
consumption spending.
- The
consensus Downside scenario: This scenario assumes that the effects
of tariffs on the global economy are worse than expected, leading
to weaker economic activity compared with the Central scenario. In
the scenario, GDP declines and unemployment rises, while asset
prices and commodity prices fall. The scenario
features an
increase in tariffs over and above those assumed in the Central
scenario, as the US administration raises tariffs on a number of
key sectors. Geopolitical tensions are assumed to rise, as the
Russia-Ukraine war intensifies and the conflict in the Middle East
re-escalates. In most markets, inflation declines relative to the
Central scenario, as tariffs are assumed to drive a drop in export
demand from the US. In the US and Mexico, inflation is assumed to
increase as higher tariffs across a broad range of imported goods
pass through to consumer prices. The scenario is consistent with
the US tariff rate, measured as an effective trade-weighted
average, rising to 23% at the end of 2025, and remaining at that
level in 2026.
- 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 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 33% at
the end of 2025, and remaining at that level in
2026.
The following tables describe key macroeconomic variables in the
consensus Central scenario, consensus Upside scenario, consensus
Downside scenario and Downside 2 scenario.
|
Consensus Central scenario 4Q25-3Q30 (as at 3Q25)
|
|||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|
GDP (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2025
|
1.0
|
1.6
|
2.4
|
4.7
|
0.6
|
4.2
|
0.3
|
|
2026
|
1.1
|
1.7
|
2.1
|
4.2
|
0.9
|
4.3
|
1.4
|
|
2027
|
1.5
|
2.0
|
2.4
|
4.2
|
1.2
|
3.8
|
2.0
|
|
2028
|
1.5
|
2.0
|
2.4
|
4.0
|
1.3
|
3.5
|
2.0
|
|
2029
|
1.5
|
2.0
|
2.4
|
3.7
|
1.2
|
3.3
|
2.1
|
|
5-year average1
|
1.4
|
1.9
|
2.3
|
4.0
|
1.1
|
3.7
|
1.8
|
|
Unemployment rate (%)
|
|
|
|
|
|
|
|
|
2025
|
4.7
|
4.3
|
3.5
|
5.1
|
7.5
|
2.5
|
3.0
|
|
2026
|
4.9
|
4.5
|
3.3
|
5.2
|
7.6
|
2.5
|
3.8
|
|
2027
|
4.6
|
4.3
|
3.1
|
5.1
|
7.5
|
2.4
|
3.4
|
|
2028
|
4.5
|
4.1
|
3.0
|
5.0
|
7.5
|
2.4
|
3.4
|
|
2029
|
4.5
|
4.0
|
2.9
|
5.0
|
7.3
|
2.3
|
3.4
|
|
5-year average1
|
4.6
|
4.2
|
3.1
|
5.1
|
7.4
|
2.4
|
3.5
|
|
House prices (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2025
|
3.0
|
2.6
|
(4.6)
|
(5.1)
|
2.6
|
14.3
|
8.2
|
|
2026
|
1.8
|
0.7
|
(1.5)
|
(1.7)
|
5.1
|
5.6
|
4.7
|
|
2027
|
2.9
|
1.7
|
3.6
|
1.0
|
5.0
|
3.2
|
4.2
|
|
2028
|
3.3
|
2.6
|
3.0
|
3.3
|
4.1
|
2.3
|
4.3
|
|
2029
|
2.7
|
3.0
|
2.6
|
3.0
|
3.1
|
2.0
|
4.0
|
|
5-year average1
|
2.6
|
2.1
|
1.8
|
1.3
|
4.0
|
3.5
|
4.4
|
|
Inflation (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2025
|
3.3
|
2.9
|
1.7
|
0.2
|
1.0
|
1.9
|
3.9
|
|
2026
|
2.5
|
2.8
|
1.8
|
0.8
|
1.5
|
1.9
|
3.7
|
|
2027
|
2.1
|
2.4
|
2.0
|
1.2
|
1.8
|
1.9
|
3.5
|
|
2028
|
2.1
|
2.2
|
2.1
|
1.4
|
2.1
|
1.9
|
3.4
|
|
2029
|
2.1
|
2.2
|
2.2
|
1.5
|
2.1
|
2.0
|
3.4
|
|
5-year average1
|
2.2
|
2.4
|
2.0
|
1.2
|
1.8
|
2.0
|
3.5
|
|
Central bank policy rate (annual
average, %)2
|
|
|
|
|
|
|
|
|
2025
|
4.2
|
4.3
|
4.6
|
3.0
|
2.2
|
4.3
|
8.4
|
|
2026
|
3.6
|
3.3
|
3.7
|
3.0
|
1.8
|
3.4
|
7.1
|
|
2027
|
3.6
|
3.0
|
3.4
|
3.0
|
2.0
|
3.0
|
7.2
|
|
2028
|
3.7
|
3.2
|
3.5
|
3.1
|
2.3
|
3.2
|
7.5
|
|
2029
|
3.9
|
3.3
|
3.7
|
3.1
|
2.5
|
3.4
|
7.8
|
|
5-year average1
|
3.8
|
3.3
|
3.7
|
3.0
|
2.2
|
3.3
|
7.5
|
1 The five-year average is calculated over
a projected period of 20 quarters from 4Q25 to 3Q30.
2 For mainland China, the policy rate shown
is the Loan Prime Rate.
|
Consensus Central scenario 2025-2029 (as at 4Q24)
|
|||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|
GDP (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2025
|
1.2
|
2.0
|
1.7
|
4.0
|
0.9
|
4.4
|
0.9
|
|
2026
|
1.3
|
1.6
|
1.8
|
3.7
|
0.9
|
4.2
|
1.2
|
|
2027
|
1.8
|
1.6
|
3.5
|
4.3
|
1.4
|
3.9
|
1.7
|
|
2028
|
1.6
|
1.8
|
3.1
|
3.9
|
1.5
|
3.6
|
1.9
|
|
2029
|
1.6
|
2.0
|
2.7
|
3.7
|
1.4
|
3.6
|
2.0
|
|
5-year average1
|
1.5
|
1.8
|
2.6
|
3.9
|
1.2
|
3.9
|
1.5
|
|
Unemployment rate (%)
|
|
|
|
|
|
|
|
|
2025
|
4.9
|
4.4
|
3.3
|
5.2
|
7.5
|
2.7
|
3.5
|
|
2026
|
4.7
|
4.3
|
3.7
|
5.4
|
7.3
|
2.6
|
3.5
|
|
2027
|
4.5
|
4.3
|
3.3
|
5.2
|
7.2
|
2.6
|
3.5
|
|
2028
|
4.3
|
4.2
|
3.0
|
5.0
|
7.0
|
2.5
|
3.5
|
|
2029
|
4.3
|
4.1
|
2.9
|
5.0
|
7.0
|
2.5
|
3.5
|
|
5-year average1
|
4.5
|
4.2
|
3.2
|
5.2
|
7.2
|
2.6
|
3.5
|
|
House prices (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2025
|
1.4
|
4.4
|
(0.5)
|
(5.9)
|
2.1
|
9.3
|
7.6
|
|
2026
|
3.8
|
3.2
|
2.4
|
(0.7)
|
4.4
|
5.1
|
4.5
|
|
2027
|
4.6
|
2.4
|
3.0
|
3.2
|
4.4
|
3.6
|
4.2
|
|
2028
|
3.5
|
2.5
|
2.7
|
4.1
|
3.8
|
1.8
|
4.0
|
|
2029
|
2.7
|
2.6
|
2.7
|
2.9
|
3.1
|
1.3
|
4.0
|
|
5-year average1
|
3.2
|
3.0
|
2.1
|
0.7
|
3.6
|
4.2
|
4.9
|
|
Inflation (annual average growth rate, %)
|
|
|
|
|
|
|
|
|
2025
|
2.4
|
2.4
|
1.4
|
0.3
|
1.2
|
2.1
|
5.0
|
|
2026
|
2.1
|
2.8
|
1.9
|
1.0
|
1.6
|
1.9
|
3.9
|
|
2027
|
2.1
|
2.5
|
2.2
|
1.5
|
2.0
|
1.8
|
3.4
|
|
2028
|
2.0
|
2.2
|
2.2
|
1.7
|
2.3
|
1.9
|
3.4
|
|
2029
|
2.0
|
2.1
|
2.3
|
1.6
|
2.2
|
1.8
|
3.4
|
|
5-year average1
|
2.1
|
2.4
|
2.0
|
1.2
|
1.9
|
1.9
|
3.8
|
|
Central bank policy rate (annual average, %)2
|
|
|
|
|
|
|
|
|
2025
|
4.2
|
4.1
|
4.5
|
2.9
|
2.1
|
4.1
|
9.4
|
|
2026
|
3.9
|
3.7
|
4.1
|
2.9
|
1.8
|
3.8
|
8.8
|
|
2027
|
3.8
|
3.7
|
4.0
|
3.0
|
2.0
|
3.7
|
8.8
|
|
2028
|
3.7
|
3.6
|
4.0
|
3.2
|
2.0
|
3.6
|
8.9
|
|
2029
|
3.7
|
3.6
|
4.0
|
3.3
|
2.1
|
3.6
|
8.9
|
|
5-year average1
|
3.9
|
3.7
|
4.1
|
3.1
|
2.0
|
3.8
|
8.9
|
1 The five-year average is calculated over
a projected period of 20 quarters from 1Q25 to 4Q29.
2 For mainland China, the policy rate shown
is the Loan Prime Rate.
|
Consensus Upside scenario 4Q25-3Q30 (as at 3Q25)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP level
(%, start-to-peak)1
|
11.5
|
(3Q30)
|
15.2
|
(3Q30)
|
20.5
|
(3Q30)
|
28.9
|
(3Q30)
|
8.5
|
(3Q30)
|
28.6
|
(3Q30)
|
16.8
|
(3Q30)
|
|
Unemployment rate
(%, min)2
|
3.0
|
(3Q27)
|
3.5
|
(1Q27)
|
2.8
|
(3Q27)
|
4.7
|
(3Q27)
|
6.6
|
(2Q27)
|
2.0
|
(3Q27)
|
3.1
|
(2Q26)
|
|
House price index
(%, start-to-peak)1
|
20.5
|
(3Q30)
|
21.2
|
(3Q30)
|
21.1
|
(3Q30)
|
11.3
|
(3Q30)
|
23.3
|
(3Q30)
|
22.9
|
(3Q30)
|
28.3
|
(3Q30)
|
|
Inflation rate
(YoY % change, max)3
|
3.6
|
(4Q25)
|
3.6
|
(2Q26)
|
3.3
|
(2Q26)
|
2.0
|
(1Q26)
|
2.3
|
(3Q27)
|
2.6
|
(4Q25)
|
4.3
|
(1Q26)
|
|
Central bank policy rate
(%, max)3
|
4.1
|
(4Q25)
|
4.1
|
(4Q25)
|
4.5
|
(4Q25)
|
3.4
|
(3Q26)
|
2.7
|
(3Q30)
|
4.1
|
(4Q25)
|
8.2
|
(3Q30)
|
|
Consensus Upside scenario 2025-2029 (as at 4Q24)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland
China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP level
(%, start-to-peak)1
|
11.3
|
(4Q29)
|
13.6
|
(4Q29)
|
21.4
|
(4Q29)
|
27.5
|
(4Q29)
|
8.9
|
(4Q29)
|
28.9
|
(4Q29)
|
13.6
|
(4Q29)
|
|
Unemployment rate
(%, min)2
|
3.5
|
(3Q26)
|
3.6
|
(1Q26)
|
2.9
|
(4Q29)
|
4.9
|
(4Q26)
|
6.4
|
(4Q26)
|
2.2
|
(4Q26)
|
3.0
|
(1Q25)
|
|
House price index
(%, start-to-peak)1
|
24.2
|
(4Q29)
|
23.6
|
(4Q29)
|
25.3
|
(4Q29)
|
9.8
|
(4Q29)
|
22.8
|
(4Q29)
|
26.1
|
(4Q29)
|
31.7
|
(4Q29)
|
|
Inflation rate
(YoY % change, min)3
|
1.4
|
(1Q26)
|
1.6
|
(2Q26)
|
(0.1)
|
(4Q25)
|
(1.0)
|
(4Q25)
|
0.1
|
(4Q25)
|
0.6
|
(4Q25)
|
3.1
|
(2Q26)
|
|
Central bank policy rate
(%, min)3
|
3.6
|
(4Q25)
|
3.6
|
(1Q29)
|
4.0
|
(1Q29)
|
2.7
|
(1Q26)
|
1.4
|
(3Q25)
|
3.6
|
(1Q29)
|
7.6
|
(1Q26)
|
1 Cumulative change to the highest level of
the series during the 20-quarter projection.
2 Lowest projected unemployment in the
scenario.
3 Highest/lowest 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 4Q25-3Q30 (as at 3Q25)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP level
(%, start-to-trough)1
|
(0.6)
|
(4Q27)
|
(1.3)
|
(2Q26)
|
(2.5)
|
(2Q27)
|
(2.2)
|
(2Q26)
|
(0.5)
|
(2Q26)
|
0.2
|
(4Q25)
|
(1.0)
|
(1Q26)
|
|
Unemployment rate
(%, max)2
|
6.5
|
(3Q26)
|
5.6
|
(2Q26)
|
4.6
|
(1Q26)
|
6.7
|
(3Q27)
|
8.6
|
(2Q26)
|
3.3
|
(2Q26)
|
4.3
|
(3Q26)
|
|
House price index
(%, start-to-trough)1
|
(4.6)
|
(1Q27)
|
(3.8)
|
(4Q26)
|
(5.5)
|
(3Q26)
|
(8.3)
|
(2Q27)
|
0.6
|
(4Q25)
|
(3.4)
|
(1Q26)
|
0.6
|
(4Q25)
|
|
Inflation rate
(YoY % change)3
|
1.4
|
(2Q26)
|
3.9
|
(4Q25)
|
0.4
|
(3Q26)
|
(3.0)
|
(3Q26)
|
0.5
|
(3Q26)
|
0.6
|
(3Q26)
|
5.0
|
(1Q26)
|
|
Central bank policy rate
(%)3
|
2.4
|
(2Q28)
|
4.9
|
(1Q26)
|
5.3
|
(1Q26)
|
1.7
|
(2Q26)
|
0.5
|
(2Q26)
|
5.0
|
(1Q26)
|
9.8
|
(1Q26)
|
|
Consensus Downside scenario 2025-2029 (as at 4Q24)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland
China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP level
(%, start-to-trough)1
|
(1.0)
|
(4Q26)
|
(0.6)
|
(3Q25)
|
(4.5)
|
(4Q25)
|
(2.5)
|
(3Q25)
|
(0.6)
|
(1Q26)
|
0.3
|
(1Q25)
|
(2.1)
|
(4Q26)
|
|
Unemployment rate
(%, max)2
|
6.1
|
(4Q25)
|
5.3
|
(3Q25)
|
5.1
|
(2Q26)
|
6.9
|
(4Q26)
|
8.3
|
(3Q25)
|
3.4
|
(1Q26)
|
4.1
|
(4Q25)
|
|
House price index
(%, start-to-trough)1
|
(4.5)
|
(1Q26)
|
(0.2)
|
(1Q25)
|
(1.9)
|
(2Q26)
|
(12.8)
|
(3Q26)
|
(0.3)
|
(1Q25)
|
(0.4)
|
(1Q25)
|
2.1
|
(1Q25)
|
|
Inflation rate
(YoY % change, max)3
|
3.4
|
(4Q25)
|
4.5
|
(1Q26)
|
3.1
|
(1Q26)
|
2.0
|
(1Q26)
|
2.6
|
(3Q25)
|
2.8
|
(1Q26)
|
7.4
|
(4Q25)
|
|
Central bank policy rate
(%, max)3
|
5.0
|
(1Q25)
|
4.8
|
(1Q25)
|
5.2
|
(1Q25)
|
3.0
|
(1Q25)
|
3.2
|
(1Q25)
|
4.8
|
(1Q25)
|
11.5
|
(3Q25)
|
1 Cumulative change to the lowest level of
the series during the 20-quarter projection.
2 The highest projected unemployment in the
scenario.
3 For 3Q25, the table shows the highest
year-on-year percentage change in inflation and projected policy
rates for the US and Mexico, and the lowest for other countries and
territories. For the UAE and Hong Kong, the policy rate is also
shown as the maximum, consistent with the operation of US
dollar-linked exchange rates. For 4Q24, the table shows the peak
value for both variables. For mainland China, the policy rate shown
is the Loan Prime Rate.
|
Downside 2 scenario 4Q25-3Q30 (as at 3Q25)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP level
(%, start-to-trough)1
|
(5.3)
|
(1Q27)
|
(3.8)
|
(4Q26)
|
(9.7)
|
(2Q27)
|
(6.0)
|
(4Q26)
|
(6.2)
|
(1Q27)
|
(5.4)
|
(1Q27)
|
(9.1)
|
(4Q26)
|
|
Unemployment rate
(%, max)2
|
8.8
|
(1Q27)
|
9.0
|
(3Q27)
|
6.8
|
(3Q26)
|
6.9
|
(3Q27)
|
10.8
|
(4Q27)
|
3.9
|
(2Q26)
|
5.7
|
(4Q26)
|
|
House price index
(%, start-to-trough)1
|
(24.7)
|
(3Q27)
|
(16.8)
|
(3Q26)
|
(21.1)
|
(2Q29)
|
(26.1)
|
(3Q27)
|
(6.4)
|
(2Q27)
|
(28.1)
|
(4Q27)
|
0.6
|
(4Q25)
|
|
Inflation rate
(YoY % change)3
|
(1.8)
|
(3Q26)
|
4.2
|
(4Q25)
|
(1.8)
|
(1Q27)
|
(6.5)
|
(3Q26)
|
(0.5)
|
(4Q26)
|
0.4
|
(3Q26)
|
5.2
|
(1Q26)
|
|
Central bank policy rate
(%)3
|
1.6
|
(4Q26)
|
5.0
|
(1Q26)
|
5.4
|
(1Q26)
|
1.5
|
(1Q27)
|
0.0
|
(2Q26)
|
5.0
|
(1Q26)
|
10.2
|
(1Q26)
|
|
Downside 2 scenario 2025-2029 (as at 4Q24)
|
||||||||||||||
|
|
UK
|
US
|
Hong
Kong
|
Mainland
China
|
France
|
UAE
|
Mexico
|
|||||||
|
GDP level
(%, start-to-trough)1
|
(9.1)
|
(2Q26)
|
(4.1)
|
(2Q26)
|
(10.1)
|
(4Q25)
|
(8.7)
|
(4Q25)
|
(7.9)
|
(2Q26)
|
(6.8)
|
(2Q26)
|
(10.5)
|
(3Q26)
|
|
Unemployment rate
(%, max)2
|
8.4
|
(2Q26)
|
9.3
|
(2Q26)
|
7.1
|
(1Q26)
|
7.1
|
(4Q26)
|
10.4
|
(1Q27)
|
5.0
|
(3Q25)
|
5.6
|
(1Q26)
|
|
House price index
(%, start-to-trough)1
|
(27.2)
|
(4Q26)
|
(15.8)
|
(4Q25)
|
(34.4)
|
(3Q27)
|
(30.5)
|
(4Q26)
|
(14.0)
|
(2Q27)
|
(13.2)
|
(2Q27)
|
2.0
|
(1Q25)
|
|
Inflation rate
(YoY % change, max)3
|
10.1
|
(2Q25)
|
4.9
|
(4Q25)
|
3.6
|
(1Q26)
|
3.8
|
(4Q25)
|
7.6
|
(2Q25)
|
3.7
|
(2Q25)
|
7.9
|
(4Q25)
|
|
Central bank policy rate
(%, max)3
|
5.5
|
(1Q25)
|
5.5
|
(1Q25)
|
5.9
|
(1Q25)
|
3.5
|
(3Q25)
|
4.2
|
(1Q25)
|
5.6
|
(1Q25)
|
12.1
|
(3Q25)
|
1 Cumulative change to the lowest level of
the series during the 20-quarter projection.
2 The highest projected unemployment in the
scenario.
3 For 3Q25, the table shows the highest
year-on-year percentage change in inflation and projected policy
rates for the US and Mexico, and the lowest for other countries and
territories. For the UAE and Hong Kong, the policy rate is also
shown as the maximum, consistent with the operation of US
dollar-linked exchange rates. For 4Q24, the table shows the peak
value for both variables. 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
|
|
3Q25
|
|
|
|
|
|
|
|
|
|
Upside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Central
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
|
Downside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Downside 2
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
|
|
|
|
|
|
|
|
|
|
|
4Q24
|
|
|
|
|
|
|
|
|
|
Upside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Central
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
|
Downside
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
10
|
|
Downside 2
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
5
|
Scenario weightings 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 and geopolitical
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.
For the third quarter of 2025, forecasts and distributional
estimates were assessed to have incorporated available information
around tariffs and policy uncertainties, while financial market
volatility and estimates of US recession risk have declined
relative to prior quarters. Consequently, there was no variation in
scenario weights and they aligned to the calibrated probabilities
of the scenarios. The consensus Upside and Central scenarios for
all key markets were assigned a combined weighting of 85%. The
remaining 15% was assigned to the two Downside scenarios, with the
consensus Downside scenario being awarded a weight of 10% and 5%
assigned to the Downside 2 scenario.
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 156 of the Annual Report and Accounts
2024.
Management judgemental adjustments are reviewed under the
governance process for IFRS 9, as detailed in the section 'Credit
risk management' on page 139 of the Annual Report and Accounts
2024.
At 30 September 2025, total management judgemental adjustments for
retail and wholesale loans increased the allowance for ECL by
$0.3bn (31 December 2024: $0.1bn increase). The wholesale portfolio
management judgemental adjustments increased by $0.2bn from
31 December 2024 in relation to market-specific uncertainties
across a number of geographies. Through continuous monitoring of
the macroeconomic environment and modelled ECL, there were no
significant management judgemental adjustments applied to the
retail portfolio at 30 September 2025.
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 Central scenario, Downside scenario or the Downside 2
scenario at 30 September 2025, it would increase/(decrease) as
presented in the below table.
|
|
Retail
|
Wholesale1
|
|
Total Group ECL at 30 Sep
20252
|
$bn
|
$bn
|
|
Reported ECL
|
2.6
|
2.2
|
|
Scenarios
|
|
|
|
100% consensus Central scenario
|
(0.1)
|
(0.1)
|
|
100% consensus Upside scenario
|
(0.2)
|
(0.5)
|
|
100% consensus Downside scenario
|
0.1
|
0.6
|
|
100% Downside 2 scenario
|
1.0
|
2.6
|
|
Total Group ECL at 31 Dec 20242
|
|
|
|
Reported ECL
|
2.4
|
2.2
|
|
Scenarios
|
|
|
|
100% consensus Central scenario
|
(0.1)
|
(0.2)
|
|
100% consensus Upside scenario
|
(0.1)
|
(0.6)
|
|
100% consensus Downside scenario
|
0.0
|
0.7
|
|
100% Downside 2 scenario
|
1.5
|
4.3
|
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 30 September 2025, the Group allowance for ECL increased by
$0.2bn in the retail portfolio, while in the wholesale portfolio it
remained materially consistent with 31 December 2024.
For the wholesale and retail portfolios, the allowance for ECL
under each of the consensus scenarios was materially consistent
with 31 December 2024. The Downside 2 ECL allowance decreased
for both the retail and wholesale portfolios. In the wholesale
portfolio this was mainly due to the implementation of new PD
models, and in the retail portfolio this was due to the reduced
severity of house price forecasts in Hong Kong. The new wholesale
models include a recent calibration of credit risk experience under
a higher interest rate environment and result in a reduction of
sensitivity to severe stress under similar conditions.
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
|
166,016
|
37,782
|
1,244
|
205,042
|
(187)
|
(353)
|
(244)
|
(784)
|
|
HSBC Bank plc
|
18,223
|
1,066
|
340
|
19,629
|
(17)
|
(19)
|
(111)
|
(147)
|
|
The Hongkong and Shanghai Banking Corporation Limited
|
199,945
|
5,994
|
1,099
|
207,038
|
(171)
|
(392)
|
(160)
|
(723)
|
|
HSBC Bank Middle East Limited
|
3,961
|
187
|
49
|
4,197
|
(15)
|
(24)
|
(30)
|
(69)
|
|
HSBC North America Holdings Inc.
|
21,692
|
540
|
367
|
22,599
|
(6)
|
(12)
|
(11)
|
(29)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
11,862
|
1,166
|
759
|
13,787
|
(223)
|
(434)
|
(322)
|
(979)
|
|
Other trading entities
|
404
|
28
|
3
|
435
|
(1)
|
(1)
|
(3)
|
(5)
|
|
At 30 Sep 2025
|
422,103
|
46,763
|
3,861
|
472,727
|
(620)
|
(1,235)
|
(881)
|
(2,736)
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
152,338
|
31,325
|
1,075
|
184,738
|
(148)
|
(307)
|
(211)
|
(666)
|
|
HSBC Bank plc
|
23,501
|
1,198
|
324
|
25,023
|
(17)
|
(24)
|
(99)
|
(140)
|
|
The Hongkong and Shanghai Banking Corporation Limited
|
191,614
|
5,519
|
1,170
|
198,303
|
(174)
|
(385)
|
(164)
|
(723)
|
|
HSBC Bank Middle East Limited
|
3,678
|
158
|
40
|
3,876
|
(14)
|
(29)
|
(30)
|
(73)
|
|
HSBC North America Holdings Inc.
|
20,851
|
497
|
327
|
21,675
|
(4)
|
(12)
|
(11)
|
(27)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
11,016
|
1,172
|
620
|
12,808
|
(207)
|
(400)
|
(279)
|
(886)
|
|
Other trading entities
|
748
|
50
|
4
|
802
|
(6)
|
(1)
|
(2)
|
(9)
|
|
At 31 Dec 2024
|
403,746
|
39,919
|
3,560
|
447,225
|
(570)
|
(1,158)
|
(796)
|
(2,524)
|
Wholesale lending
|
Total wholesale lending for loans and advances to banks and
customers at amortised cost by stage distribution
|
||||||||||
|
|
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
|
95,801
|
9,894
|
3,723
|
-
|
109,418
|
(193)
|
(328)
|
(773)
|
-
|
(1,294)
|
|
HSBC Bank plc
|
95,645
|
5,539
|
1,736
|
54
|
102,974
|
(67)
|
(108)
|
(583)
|
(28)
|
(786)
|
|
The Hongkong and Shanghai Banking Corporation Limited
|
275,650
|
37,519
|
12,668
|
58
|
325,895
|
(172)
|
(743)
|
(3,330)
|
(43)
|
(4,288)
|
|
HSBC Bank Middle East Limited
|
27,114
|
958
|
1,265
|
5
|
29,342
|
(13)
|
(28)
|
(550)
|
(4)
|
(595)
|
|
HSBC North America Holdings Inc.
|
28,962
|
5,264
|
611
|
193
|
35,030
|
(36)
|
(127)
|
(180)
|
(1)
|
(344)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
12,862
|
1,902
|
373
|
-
|
15,137
|
(46)
|
(49)
|
(184)
|
-
|
(279)
|
|
Other trading entities
|
7,374
|
301
|
329
|
-
|
8,004
|
(9)
|
(5)
|
(181)
|
-
|
(195)
|
|
Holding companies, shared service centres and intra-Group
eliminations
|
78
|
-
|
-
|
-
|
78
|
-
|
-
|
-
|
-
|
-
|
|
At 30 Sep 20251
|
543,486
|
61,377
|
20,705
|
310
|
625,878
|
(536)
|
(1,388)
|
(5,781)
|
(76)
|
(7,781)
|
|
By legal entity
|
|
|
|
|
|
|
|
|
|
|
|
HSBC UK Bank plc
|
81,630
|
12,772
|
3,356
|
-
|
97,758
|
(197)
|
(403)
|
(603)
|
-
|
(1,203)
|
|
HSBC Bank plc
|
85,022
|
5,843
|
2,305
|
47
|
93,217
|
(54)
|
(111)
|
(752)
|
(22)
|
(939)
|
|
The Hongkong and Shanghai Banking Corporation Limited
|
279,535
|
27,078
|
11,483
|
39
|
318,135
|
(170)
|
(677)
|
(2,999)
|
(28)
|
(3,874)
|
|
HSBC Bank Middle East Limited
|
26,359
|
951
|
848
|
4
|
28,162
|
(20)
|
(6)
|
(463)
|
(1)
|
(490)
|
|
HSBC North America Holdings Inc.
|
30,107
|
4,665
|
503
|
-
|
35,275
|
(31)
|
(141)
|
(121)
|
-
|
(293)
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
11,957
|
1,703
|
230
|
-
|
13,890
|
(35)
|
(48)
|
(128)
|
-
|
(211)
|
|
Other trading entities
|
7,840
|
515
|
332
|
-
|
8,687
|
(10)
|
(4)
|
(180)
|
-
|
(194)
|
|
Holding companies, shared service centres and intra-Group
eliminations
|
76
|
-
|
-
|
-
|
76
|
-
|
-
|
-
|
-
|
-
|
|
At 31 Dec 2024
|
522,526
|
53,527
|
19,057
|
90
|
595,200
|
(517)
|
(1,390)
|
(5,246)
|
(51)
|
(7,204)
|
1 The shift of 'gross carrying amount'
between stage 1 and 2 arose mainly in Asia from higher average PD
for the remaining term at the reporting date, reflecting updates to
our PD models and ongoing market challenges. PDs at the reporting
date were compared with the PD calculated at
origination.
Hong Kong commercial real estate
In the table below, we have disclosed information related to 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
|
|||
|
|
30 Sep 2025
|
30 Jun 2025
|
31 Dec 2024
|
|
|
$m
|
$m
|
$m
|
|
Gross loans and advances
|
|
|
|
|
By stage
|
|
|
|
|
Stage 11
|
8,975
|
8,635
|
22,132
|
|
Stage 21
|
15,701
|
18,142
|
6,515
|
|
Stage 3
|
6,357
|
5,141
|
4,554
|
|
By credit quality
|
|
|
|
|
Strong
|
3,180
|
3,968
|
4,484
|
|
Good
|
8,418
|
9,124
|
9,754
|
|
Satisfactory
|
10,502
|
10,330
|
10,716
|
|
Sub-standard
|
2,576
|
3,355
|
3,693
|
|
Credit impaired
|
6,357
|
5,141
|
4,554
|
|
At
|
31,033
|
31,918
|
33,201
|
|
Allowance for ECL
|
(1,062)
|
(877)
|
(405)
|
1 The shift of 'gross carrying amount'
between stage 1 and 2 arose mainly in Asia from higher average PD
for the remaining term at the reporting date, reflecting updates to
our PD models and ongoing market challenges. PDs at the reporting
date were compared with the PD calculated at
origination.
The Hong Kong CRE portfolio (excluding exposure to mainland China
borrowers) saw further allowances for ECL in the third quarter of
2025 driven by continued negative migration in the secured book,
which accounts for 59% of the total portfolio (30 June 2025: 58%
and 31 December 2024: 54%), as well as sustained pressure on
property prices, particularly in the 'credit impaired'
portfolio.
'Sub-standard' and 'credit-impaired' exposures increased to $8.9bn
(30 June 2025: $8.5bn and 31 December 2024: $8.2bn), of which 95%
was secured (30 June 2025: 94% and 31 December 2024: 92%). As
at 31 August 2025, the weighted average loan to value
('LTV'):
- of
performing exposures rated 'sub-standard' was 43% (30 June 2025:
45% and 31 December 2024: 46%). There was immaterial exposure
with an LTV of greater than 70%, unchanged compared with 30 June
2025 (31 December 2024: $0.1bn); and
- of
'credit-impaired' exposures was 65% (30 June 2025: 67% and 31
December 2024: 58%). Within this portfolio, $1.7bn had an LTV of
greater than 70% (30 June 2025: $1.4bn and 31 December 2024:
$1.2bn).
Collateral information and LTV calculations were based on total
limits, inclusive of off-balance sheet commitments of $43.7bn as of
31 August 2025 (30 June 2025: $43.9bn and 31 December 2024:
$49.2bn).
The unsecured portfolio remained stable in size and quality, with
limited 'credit impaired' levels and 92% rated 'strong' or 'good'
(30 June 2025: 93% and 31 December 2024: 93%). Unsecured
exposures are typically granted to strong, listed Hong Kong CRE
developers, which are commonly members of conglomerate groups with
diverse cash flows.
We continue to expect market conditions to remain challenging in
the near term as a result of overall weak leasing and investment
demand. While local sentiment has improved in response to improved
financial market performance, we are yet to see signs of a
meaningful stabilisation outside of the residential sector, where
an uptick in rents and government stimulus measures introduced in
4Q24 have underpinned a recovery in transaction levels. The
commercial property sector continues to face downward pressure,
with both rental and capital values impacted by over-supply,
particularly in the office market. The retail property sector has
experienced a slight rebound as a result of sales growth since
April 2025, although a meaningful recovery is expected to take time
as landlords adapt to the structural changes in consumer spending
habits. Against this backdrop, further credit migration and
property price pressure is likely until we see a deeper reduction
in interest rates and a more structural improvement in local
economic conditions.
We continue to closely assess and manage the risk in the portfolio,
including through portfolio reviews and stress testing. Vulnerable
borrowers, including those with debt serviceability challenges and
higher LTV levels, are subject to heightened monitoring and
management.
|
|
Capital risk
Capital overview
|
Capital and liquidity adequacy metrics
|
|
|
|
|
At
|
|
|
|
30 Sep 2025
|
30 Jun 2025
|
|
Risk-weighted assets ('RWAs') ($bn)
|
|
|
|
Credit risk
|
698.5
|
703.6
|
|
Counterparty credit risk
|
42.4
|
41.4
|
|
Market risk
|
28.9
|
32.5
|
|
Operational risk
|
109.0
|
109.4
|
|
Total risk-weighted assets
|
878.8
|
886.9
|
|
Capital ($bn)
|
|
|
|
Common equity tier 1 capital
|
127.8
|
129.8
|
|
Tier 1 capital
|
148.6
|
150.6
|
|
Total capital
|
177.7
|
178.5
|
|
Capital ratios (%)
|
|
|
|
Common equity tier 1 ratio
|
14.5
|
14.6
|
|
Tier 1 ratio
|
16.9
|
17.0
|
|
Total capital ratio
|
20.2
|
20.1
|
|
Liquidity coverage ratio ('LCR')
|
|
|
|
Total high-quality liquid assets ($bn)
|
690.2
|
678.1
|
|
Total net cash outflow ($bn)
|
498.3
|
485.5
|
|
LCR (%)
|
139
|
140
|
References to EU regulations and directives (including technical
standards) should, as applicable, be read as references to the UK's
version of such regulation 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 regulatory requirements of the Capital
Requirements Regulation and Directive, the CRR II regulation and
the Prudential Regulation Authority ('PRA') Rulebook ('CRR II').
Effective 1 January 2025, the IFRS 9 transitional arrangements came
to an end, followed by the end of the CRR II grandfathering
provisions on 28 June 2025. Accordingly, our numbers in the
previous table are the same on 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 30 September 2025, our CET1 capital ratio decreased to 14.5%
from 14.6% at 30 June 2025:
- CET1
capital generation through regulatory profits in the period was
offset by the share buy-back announced with our 2Q25 results,
dividends, changes in regulatory deductions and strategic
transactions, reducing our CET1 capital ratio by 0.2 percentage
points; and
- reductions
in RWAs, mainly due to a decline in market risk RWAs and
methodology and policy changes in credit risk RWAs, which improved
our CET1 capital ratio by 0.1 percentage
points.
Our Pillar 2A requirement at 30 September 2025, 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 3Q25, we complied with the PRA's regulatory capital
adequacy requirement.
Leverage
|
Leverage ratio
|
|
|
|
|
At
|
|
|
|
30 Sep 2025
|
30 Jun 2025
|
|
|
$bn
|
$bn
|
|
Tier 1 capital (leverage)
|
148.6
|
150.6
|
|
Total leverage ratio exposure
|
2,840.5
|
2,792.9
|
|
|
%
|
%
|
|
Leverage ratio
|
5.2
|
5.4
|
Our leverage ratio was 5.2% at 30 September 2025, down from 5.4% at
30 June 2025, due to balance sheet growth increasing leverage
exposures and a decrease in Tier 1 capital.
At 30 September 2025, our UK minimum leverage ratio requirement of
3.25% was supplemented by a leverage ratio buffer of 0.9%,
consisting of an additional leverage ratio buffer of 0.7% and a
countercyclical leverage ratio buffer of 0.2%. These buffers
translated into capital of $19.9bn and $5.7bn respectively. We
exceeded these leverage requirements throughout 3Q25.
Risk-weighted assets
|
RWAs by business segment
|
||||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
CorporateCentre
|
Total
RWAs
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
Credit risk
|
118.3
|
132.9
|
287.0
|
74.7
|
85.6
|
698.5
|
|
Counterparty credit risk
|
0.1
|
0.1
|
40.0
|
0.9
|
1.3
|
42.4
|
|
Market risk
|
0.1
|
-
|
21.5
|
0.3
|
7.0
|
28.9
|
|
Operational risk
|
22.0
|
20.5
|
54.8
|
15.7
|
(4.0)
|
109.0
|
|
At 30 Sep 2025
|
140.5
|
153.5
|
403.3
|
91.6
|
89.9
|
878.8
|
|
At 30 Jun 2025
|
140.6
|
153.0
|
411.2
|
91.0
|
91.1
|
886.9
|
|
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
|
135.9
|
78.7
|
321.4
|
19.1
|
62.3
|
25.4
|
45.5
|
10.2
|
698.5
|
|
Counterparty credit risk
|
0.3
|
23.4
|
10.5
|
0.8
|
4.4
|
0.8
|
2.2
|
-
|
42.4
|
|
Market risk2
|
0.2
|
21.4
|
25.8
|
2.4
|
3.1
|
0.7
|
1.6
|
2.6
|
28.9
|
|
Operational risk
|
22.0
|
21.5
|
55.2
|
4.6
|
7.7
|
5.5
|
4.8
|
(12.3)
|
109.0
|
|
At 30 Sep 2025
|
158.4
|
145.0
|
412.9
|
26.9
|
77.5
|
32.4
|
54.1
|
0.5
|
878.8
|
|
At 30 Jun 2025
|
158.0
|
147.8
|
416.8
|
25.6
|
77.4
|
32.7
|
53.4
|
0.9
|
886.9
|
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 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
|
Market risk
|
Total RWAs
|
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
RWAs at 1 Jul 2025
|
157.8
|
125.7
|
389.4
|
24.2
|
74.3
|
32.0
|
52.2
|
(1.2)
|
32.5
|
886.9
|
|
Asset size
|
4.0
|
(2.3)
|
1.1
|
0.5
|
0.8
|
(0.9)
|
0.2
|
0.3
|
(3.6)
|
0.1
|
|
Asset quality
|
(0.2)
|
(0.2)
|
(0.2)
|
(0.2)
|
(0.3)
|
(0.2)
|
0.1
|
-
|
-
|
(1.2)
|
|
Model updates
|
(0.6)
|
0.1
|
(0.7)
|
-
|
(0.3)
|
-
|
-
|
-
|
-
|
(1.5)
|
|
Methodology and policy
|
(0.3)
|
0.7
|
(2.5)
|
-
|
(0.1)
|
(0.1)
|
-
|
(1.1)
|
-
|
(3.4)
|
|
Acquisitions and disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Foreign exchange movements2
|
(2.5)
|
(0.4)
|
-
|
-
|
-
|
0.9
|
-
|
(0.1)
|
|
(2.1)
|
|
Total RWA movement
|
0.4
|
(2.1)
|
(2.3)
|
0.3
|
0.1
|
(0.3)
|
0.3
|
(0.9)
|
(3.6)
|
(8.1)
|
|
RWAs at 30 Sep 2025
|
158.2
|
123.6
|
387.1
|
24.5
|
74.4
|
31.7
|
52.5
|
(2.1)
|
28.9
|
878.8
|
1 Balances are on a third-party Group
consolidated basis.
2 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.
|
RWA movement by business segment by key driver
|
|||||||
|
|
Credit risk, counterparty credit risk and operational
risk
|
Market
risk
|
Total
RWAs
|
||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
||
|
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|
RWAs at 1 Jul 2025
|
140.5
|
153.0
|
386.1
|
90.5
|
84.3
|
32.5
|
886.9
|
|
Asset size
|
(0.4)
|
4.0
|
(1.3)
|
0.5
|
0.9
|
(3.6)
|
0.1
|
|
Asset quality
|
(0.8)
|
(0.2)
|
(0.2)
|
0.1
|
(0.1)
|
-
|
(1.2)
|
|
Model updates
|
-
|
(0.6)
|
(0.9)
|
-
|
-
|
-
|
(1.5)
|
|
Methodology and policy
|
0.1
|
(0.2)
|
(1.2)
|
0.1
|
(2.2)
|
-
|
(3.4)
|
|
Acquisitions and disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Foreign exchange movements1
|
1.0
|
(2.5)
|
(0.7)
|
0.1
|
-
|
-
|
(2.1)
|
|
Total RWA movement
|
(0.1)
|
0.5
|
(4.3)
|
0.8
|
(1.4)
|
(3.6)
|
(8.1)
|
|
RWAs at 30 Sep 2025
|
140.4
|
153.5
|
381.8
|
91.3
|
82.9
|
28.9
|
878.8
|
1 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.
RWAs decreased by $8.1bn during 3Q25, including a fall of $2.1bn
due to foreign currency translation differences. The remaining
$6.0bn decrease in RWAs was predominantly attributable to a decline
in market risk RWAs, and methodology and policy
changes.
Asset size
Market risk RWAs decreased by $3.6bn, mainly as a result of lower
stressed value at risk, due to an improved risk profile in the
rates portfolio, coupled with higher data points falling out of the
historical period on which stressed value at risk is
calculated.
Other asset size increases were largely driven by increased lending
in our UK business, across both corporates and
mortgages. Corporate Centre RWAs increased, largely as a
result of a rise in SAB corporate exposures.
Asset quality
The $1.2bn fall in RWAs was primarily due to changes in the
portfolio mix in our Hong Kong business.
Model updates
The decrease of $1.5bn was primarily driven by recalibration of
post-model adjustments to address wholesale internal-ratings credit
risk model limitations, notably in CIB, and retail credit model
adjustments in our UK business.
Methodology and policy
The decrease of $3.4bn was primarily due to credit risk parameter
refinements in CIB and Corporate Centre.
Additional information
Dividends
Second interim dividend for 2025
On 30 July 2025, the Directors approved a second interim dividend
for 2025 of $0.10 per ordinary share, which was paid on 26
September 2025 in cash. The pound sterling and Hong Kong dollar
amounts of approximately £0.073562 and HK$0.777678 were
calculated using the forward exchange rates quoted by HSBC Bank plc
in London at or about 11.00am on 15 September 2025.
Third interim dividend for 2025
On 28 October 2025, the Directors approved a third interim dividend
in respect of the financial year ending 31 December 2025 of $0.10
per ordinary share (the 'dividend'), a distribution of
approximately $1.72bn. The dividend will be payable on 18 December
2025 to holders of record on the Principal Register in the UK, the
Hong Kong Overseas Branch Register or the Bermuda Overseas Branch
Register on 7 November 2025.
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 on 8 December 2025. The
ordinary shares in London, Hong Kong and Bermuda will be quoted
ex-dividend on 6 November 2025. American Depositary Shares
('ADSs') in New York will be quoted ex-dividend on 7 November
2025.
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 3 December 2025
to be effective for this dividend.
The dividend will be payable on ADSs, each of which represents five
ordinary shares, on 18 December 2025 to holders of record on 7
November 2025. 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 26 November 2025.
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 7 November 2025
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 7 November
2025. Any person wishing to remove ordinary shares to or from each
register must do so before 4.00pm local time on 6 November
2025.
Shares repurchased under HSBC Holdings plc buy-backs, which have
not yet been cancelled from the Hong Kong custodians' CCASS account
as at the record date, will not be eligible for the
dividend.
Transfers of ADSs must be lodged with the depositary by 11.00am
local time on 7 November 2025 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 17 March, 16 June, 15 September and
15 December 2025 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 December 2025 to holders of record on 28 November
2025.
For and on behalf of
HSBC Holdings plc
Aileen Taylor
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†,
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
Chair
† Independent non-executive
Director
Investor relations/media relations contacts
For further information contact:
|
Investor relations
|
|
Media relations
|
|
UK - Alastair Ryan
|
|
UK - Gillian James
|
|
Telephone: +44 (0)7468 703 010
|
|
Telephone: +44 (0)7584 404 238
|
|
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]
|
|
|
|
|
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
|
|
Cautionary statement regarding forward-looking
statements
This Earnings Release 3Q25 contains certain forward-looking
statements with respect to HSBC's: financial condition; results of
operations and business, including the strategic priorities; and
financial, investment and capital targets 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 ongoing Russia-Ukraine war and
developments in relation to the conflict in the Middle East 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 ongoing Russia-Ukraine war and developments in
relation to the conflict in the Middle East, inflationary
pressures, commodity price changes, and ongoing developments in the
commercial real estate sectors 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; 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 ongoing Russia-Ukraine war or developments in relation
to the conflict in the Middle East and the related imposition of
sanctions, export-control and trade restrictions, 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, 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
environmental, social and governance ('ESG') 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;
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;
the discontinuation of certain key Ibors and the transition of the
remaining legacy Ibor contracts to near risk-free benchmark rates,
which continues to expose HSBC to some financial and non-financial
risks; and price competition in the market segments we
serve;
- changes
in government policy and regulation, including trade and tariff
policies, as well as monetary, interest rate and other policies of
central banks and other regulatory authorities in the principal
markets in which we operate and the consequences thereof
(including, without limitation, actions taken as a result of
changes in government following national elections and the trade
policies announced by the US and potential countermeasures that may
be adopted by several countries, including in the markets where the
Group operates); 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; evolving regulatory
requirements and the development of new technologies, including
artificial intelligence, affecting how we manage 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 42 of
this Earnings Release 3Q25.
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
3Q25 is available in our Annual Report and Accounts for the fiscal
year ended 31 December 2024, which was filed with the SEC on Form
20-F on 20 February 2025; our 1Q25 Earnings Release, furnished to
the SEC on Form 6-K on 29 April 2025; and our Interim Report for
the six months ended 30 June 2025, furnished to the SEC on Form 6-K
on 30 July 2025.
Abbreviations
|
1Q25
|
First quarter of 2025
|
|
2Q25
|
Second quarter of 2025
|
|
3Q24
|
Third quarter of 2024
|
|
3Q25
|
Third quarter of 2025
|
|
4Q24
|
Fourth quarter of 2024
|
|
4Q25
|
Fourth quarter of 2025
|
|
9M24
|
First nine months of 2024
|
|
9M25
|
First nine months of 2025
|
|
ADRs
|
American Depositary Receipts
|
|
ADS
|
American Depositary Share
|
|
AI
|
Artificial intelligence
|
|
AIEA
|
Average interest-earning assets
|
|
Banking NII
|
Banking net interest income
|
|
BoCom
|
Bank of Communications Co., Limited
|
|
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
|
|
CRR II
|
The regulatory requirements of the Capital Requirements Regulation
and Directive, the CRR II regulation and the PRA
Rulebook
|
|
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
|
|
GAAP
|
Generally accepted accounting principles
|
|
Galicia
|
Grupo Financiero Galicia
|
|
GDP
|
Gross domestic product
|
|
GPS
|
Global Payments Solutions
|
|
Group
|
HSBC Holdings together with its subsidiary
undertakings
|
|
GTS
|
Global Trade Solutions, the business formerly known as Global Trade
and Receivables Finance
|
|
Hang Seng Bank
|
Hang Seng Bank Limited
|
|
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
|
|
HSSL
|
HSBC Securities Services Luxembourg
|
|
Ibor
|
Interbank offered rate
|
|
IFRSs
|
International Financial Reporting Standards
|
|
IWPB
|
International Wealth and Premier Banking, a business
segment
|
|
Jun
|
June
|
|
LCR
|
Liquidity coverage ratio
|
|
Long term
|
For our financial targets, we define long term as five to six
years, commencing 1 January 2025
|
|
LTV
|
Loan to value
|
|
Mainland China
|
People's Republic of China excluding Hong Kong and
Macau
|
|
Medium term
|
For our financial targets, we define medium term as three to five
years, commencing 1 January 2025
|
|
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
|
|
PD
|
Probability of default
|
|
POCI
|
Purchased or originated credit-impaired financial
assets
|
|
PRA
|
Prudential Regulation Authority (UK)
|
|
Revenue
|
Net operating income before change in expected credit losses and
other credit impairment charges
|
|
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
|
|
Sep
|
September
|
|
UAE
|
United Arab Emirates
|
|
UK
|
United Kingdom
|
|
US
|
United States of America
|
|
$m/$bn/$tn
|
United States dollar millions/billions/trillions. We report in US
dollars
|
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0881F_1-2025-10-28.pdf
SIGNATURE
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:
Aileen Taylor
|
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
|
|
Date:
28 October 2025
|
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