HSBC reported full-year 2025 pretax profit of $29.91 billion, comfortably exceeding analyst expectations of $28.86 billion despite a $4.9 billion hit from restructuring and strategic exit charges. The Asia-focused lender's performance was buoyed by robust growth in wealth and transaction banking, offsetting the impact of impairments related to its stake in Bank of Communications. Revenue grew 4% to $68.3 billion, driven by strong foreign-exchange income in its corporate and institutional banking arm.

While pretax profit fell year-on-year from $32.38 billion, excluding the notable items it rose to $36.62 billion. Fourth-quarter pretax profit surged to $6.8 billion from $2.3 billion, reflecting a favorable swing after the 2024 period was impacted by losses on the Argentina disposal. The board declared a fourth interim dividend of $0.45 per share, bringing total 2025 payouts to $0.75 per share.

HSBC reaffirmed its 2026-2028 return on tangible equity target of at least 17%, citing momentum across its core businesses and ongoing simplification savings. For 2026, it expects banking net interest income of at least $45 billion and credit losses around 40 basis points of loans.