REG - HSBC Holdings PLC - HSBC Holdings plc earnings release 3Q25
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RNS Number : 0881F HSBC Holdings PLC 28 October 2025
HSBC Holdings plc Earnings Release 3Q25
28 October 2025
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."
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.
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.
uOur 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.
uWe 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.
uSee 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.
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.
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.
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.
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.
uFor 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 $49bn booked in Asia.
Financial summary
Key financial metrics
Nine months ended Quarter ended
30 Sep 2025 30 Sep 2024 30 Sep 2025 30 Jun 2025 30 Sep 2024
Reported results
Profit before tax ($m) 23,105 30,032 7,295 6,326 8,476
Profit after tax ($m) 17,944 24,414 5,503 4,871 6,749
Net operating income before change in expected credit losses and other credit 51,910 54,290 17,788 16,473 16,998
impairment charges ('revenue') ($m)
Cost efficiency ratio (%) 52.2 45.0 56.6 54.1 47.9
Net interest margin (%) 1.57 1.57 1.57 1.56 1.46
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 (in respect of the period) ($)(1) 0.30 0.51 0.10 0.10 0.10
Alternative performance measures
Constant currency profit before tax ($m) 23,105 30,064 7,295 6,320 8,573
Constant currency revenue ($m) 51,910 54,229 17,788 16,561 17,172
Constant currency banking net interest income ($m) 32,362 32,464 11,049 10,802 10,612
Constant currency cost efficiency ratio (%) 52.2 45.0 56.6 54.3 47.8
Constant currency profit before tax excluding notable items ($m) 28,031 26,825 9,103 9,185 8,818
Constant currency revenue excluding notable items ($m) 53,297 50,873 17,900 17,751 17,380
Constant currency profit before tax excluding notable items and strategic 28,031 26,496 9,103 9,185 8,809
transactions ($m)
Constant currency revenue excluding notable items and strategic transactions 53,297 49,909 17,900 17,751 17,238
($m)
Expected credit losses and other credit impairment charges (annualised) as a % 0.40 0.27 0.40 0.44 0.40
of average gross loans and advances to customers, including held for sale (%)
Basic earnings per share excluding material notable items and related impacts 1.14 1.02 0.36 0.39 0.34
($)
Return on average ordinary shareholders' equity (annualised) (%) 12.9 17.9 11.3 10.7 14.4
Return on average tangible equity (annualised) (%) 13.9 19.3 12.3 11.5 15.5
Return on average tangible equity excluding notable items (annualised) (%) 17.6 16.7 16.4 17.7 15.9
Target basis operating expenses ($m) 24,559 23,865 8,380 8,338 8,099
At
30 Sep 2025 30 Jun 2025 31 Dec 2024
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
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 17,183 17,397 17,918
own shares held (millions)
Period end basic number of $0.50 ordinary shares outstanding and dilutive 17,332 17,529 18,062
potential ordinary shares, after deducting own shares held (millions)
Average basic number of $0.50 ordinary shares outstanding, after deducting own 17,529 17,646 18,357
shares held (millions)
uFor 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.
uThe 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.
uSee 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.
uSee 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.
uSee 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.
uSee 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.
uSee page 31 for the supplementary analysis of the impact of strategic
transactions.
uSee 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 15,061 15,814 4,513 5,191 5,298
value basis(1)
Net income/(expense) from assets and liabilities of insurance businesses, 9,556 7,889 4,443 3,592 5,513
including related derivatives, measured at fair value through profit or loss
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 operations(2) (181) 3,328 (147) (36) 72
Other operating (expense)/income(3) (118) 336 307 (777) 479
Net operating income before change in expected credit losses and other credit 51,910 54,290 17,788 16,473 16,998
impairment charges(4)
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 (24,871) (22,798) (9,120) (8,263) (7,604)
assets
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 associate(3) (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
transactions(1)
$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
transactions(1)
$m $m $m % $m
Banking NII(2) 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 items(3) 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 provisions(1,2) (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
transactions(1)
$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.
uFor 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 transactions(1)
$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 transactions(1)
$m $m $m % $m
Banking NII(2) 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 items(3) 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 provisions(1,2) (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 transactions(1)
$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 yield(1) 4.50 5.27 4.36 4.49 5.19
Less: gross interest payable(1) (3.17) (4.08) (3.01) (3.18) (4.07)
Net interest spread(2) 1.33 1.19 1.35 1.31 1.12
Net interest margin(3) 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 7,094 8,560 2,384 2,307 3,051
instruments held for trading or managed on a fair value basis'
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 134,408 128,942 115,769
through profit or loss
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 2,922 2,162 965
for sale'
- 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.
uFor 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 transactions(1)
$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 transactions(4)
$m $m $m % $m
Banking NII(1) 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
-
- Other(2) 103 40 63 >100
- Commercial Banking 893 854 39 5
-
- Wholesale Transaction Banking 548 529 19 4
-
- Credit and Lending 60 65 (5) (8)
-
- Other(2) 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 transactions(1)
$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 transactions(3)
$m $m $m % $m
Banking NII(1) 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
-
- Other(2) 18 16 2 13
- Commercial Banking 282 290 (8) (3)
-
- Wholesale Transaction Banking 187 183 4 2
-
- Credit and Lending 17 21 (4) (19)
-
- Other(2) 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 transactions(1)
$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 transactions(4)
$m $m $m % $m
Banking NII(1) 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)
-
- Other(2) 16 59 (43) (73)
-
- Commercial Banking 919 914 5 1
-
- Wholesale Transaction Banking 667 684 (17) (2)
-
- Credit and Lending 176 159 17 11
-
- Other(2) 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 transactions(1)
$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 transactions(3)
$m $m $m % $m
Banking NII(1) 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)
-
- Other(2) 9 29 (20) (69)
-
- Commercial Banking 313 300 13 4
-
- Wholesale Transaction Banking 223 235 (12) (5)
-
- Credit and Lending 65 56 9 16
-
- Other(2) 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 transactions(1)
$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 transactions(4)
$m $m $m % $m
Banking NII(1) 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)
- Other(2) 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 transactions(1)
$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 transactions(3)
$m $m $m % $m
Banking NII(1) 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)
- Other(2) 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 transactions(1)
$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
9M2
5
vs.
9M2
4
of which strategic transactions(4)
$m $m $m % $m
Banking NII(1) 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)
- Other(2) 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 transactions(1)
$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
3Q2
5
vs.
3Q2
4
of which strategic transactions(3)
$m $m $m % $m
Banking NII(1) 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)
- Other(2) 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 transactions(1)
$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 transactions(5)
$m $m $m % $m
Banking NII(1) (558) (578) 20 3
-
Fee and other income(2) 621 416 205 49 -
Revenue excluding notable items 63 (162) 225 >100
-
Notable items (1,214) 3,315 (4,529) >(100) (3,862)
Revenue(3) (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 transactions(1)
$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 transactions(4)
$m $m $m % $m
Banking NII(1) (236) (245) 9 4
-
Fee and other income(2) 163 241 (78) (32) -
Revenue excluding notable items (73) (4) (69) >(100)
-
Notable items 4 (208) 212 >100 (102)
Revenue(3) (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 results(1)
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(2,3)
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 impairment(3)
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 costs(1,2) (283) 3,643 (144) (48) 72
Early redemption of legacy securities - (283) - - (283)
Dilution loss of interest in BoCom associate(3) (1,104) - 32 (1,136) -
Operating expenses
Disposals, wind-downs, acquisitions and related costs (345) (149) (118) (177) (48)
Restructuring and other related costs(4) (773) 22 (157) (475) 3
Legal provisions(5,6) (1,421) - (1,421) - -
Impairment losses of interest in BoCom associate(3) (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 segments(1)
Nine months ended 30 Sep 2025
Hong UK CIB IWPB Corporate Total
Kong Centre
$m $m $m $m $m $m
Revenue(2,3) 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 impairment(3) - - - 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
Revenue(2) 11,228 9,159 20,111 10,578 3,153 54,229
ECL (1,988)
(721) (238) (337) (665) (27)
Operating expenses (3,539) (3,665) (10,621) (6,490) (24,403)
(88)
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 UK CIB IWPB Corporate Centre Total
Kong
$m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - - (6) (167) (110) (283)
Dilution loss of interest in BoCom associate(2) - - - - (1,104) (1,104)
Operating expenses
Disposals, wind-downs, acquisitions and related costs - 1 (213) (54) (79) (345)
Restructuring and other related costs(3) (10) (63) (275) (108) (317) (773)
Legal provisions(4,5) - - (321) - (1,100) (1,421)
Impairment losses of interest in BoCom associate(2) - - - - (1,000) (1,000)
Nine months ended 30 Sep 2024
Revenue
Disposals, wind-downs, acquisitions and related costs(6) - - 55 3,602 3,643
(14)
Early redemption of legacy securities - - - -
(283) (283)
Operating expenses
Disposals, wind-downs, acquisitions and related costs - 3 -
(1) (151) (149)
Restructuring and other related costs(7) - 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 UK CIB IWPB Corporate Total
Kong Centre
$m $m $m $m $m $m
Revenue(1)
- 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 UK CIB IWPB Corporate Total
Kong Centre
$m $m $m $m $m $m
Revenue(2) 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
Revenue(2,3) 3,836 3,257 6,993 3,546 (1,071) 16,561
ECL (1,076)
(544) (156) (132) (235) (9)
Operating expenses (1,165) (1,353) (4,000) (2,395) (8,999)
(86)
Share of profit in associates and joint ventures less impairment(3) - - -
(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
Revenue(2) 3,796 3,165 6,778 3,645 17,172
(212)
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 UK CIB IWPB Corporate Centre Total
Kong
$m $m $m $m $m $m
Revenue
Disposal, wind-downs, acquisitions and related costs - - (6) (110) (28) (144)
Dilution loss of interest in BoCom associate(1) - - - - 32 32
Operating expenses
Disposal, wind-downs, acquisitions and related costs - - (34) (49) (35) (118)
Restructuring and other related costs(2) (1) (15) (58) (29) (54) (157)
Legal provisions(3,4) - - (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 associate(1) - - - - (1,136) (1,136)
Operating expenses
Disposals, wind-downs, acquisitions and related costs - 1
(153) (1) (24) (177)
Restructuring and other related costs(2)
(2) (44) (171) (56) (202) (475)
Impairment losses of interest in BoCom associate(1) - - - - (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 costs(5) - 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 UK CIB IWPB Corporate Total
Kong Centre
$m $m $m $m $m $m
Revenue(1)
- 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
Revenue(1)
- 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 UK CIB IWPB Corporate Total
Centre
Kong
$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 0.1
(2.9) (1.1) (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 UK CIB IWPB Corporate Total
Centre
Kong
$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 US(1) - - (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 US(1) - - (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 UK CIB IWPB Corporate Total
Centre
Kong
$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 US(1) - - (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 US(1) - - (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 US(1) - - (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 entities(1)
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. Grupo Other trading entities(2) Holding Total
Financiero
HSBC, S.A. companies,
de C.V.
shared
service
centres and
intra-Group
eliminations
$m $m $m $m $m $m $m $m $m
Revenue(3,4) 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 impairment(4) - 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. Grupo Other trading entities Holding Total
Financiero
HSBC, S.A. companies,
de C.V.
shared
service
centres and
intra-Group
eliminations
$m $m $m $m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - (160) - (1) - - - (122) (283)
Dilution loss of interest in BoCom associate(2) - - (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 costs(3) (107) (239) (199) (21) (54) (29) (27) (97) (773)
Legal provisions(4,5) - (1,421) - - - - - - (1,421)
Impairment losses of interest in BoCom associate(2) - - (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 and HSBC Bank Middle East Limited HSBC North America Holdings Inc. HSBC Bank Canada Grupo Other trading entities(1) Holding Total
Shanghai Financiero companies,
Banking HSBC, S.A. shared
Corporation de C.V. service
Limited centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue(2)
- 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 Grupo Other trading entities Holding Total
Financiero companies,
HSBC, S.A. shared
de C.V. service
centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - (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 costs(2) 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 HSBC Bank Middle East Limited HSBC North America Holdings Inc. Grupo Other trading entities(2) Holding Total
Financiero companies,
Shanghai HSBC, S.A. shared
de C.V. service
Banking centres and
intra-group
Corporation eliminations
Limited
$m $m $m $m $m $m $m $m $m
Revenue(3) 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. Grupo Other trading entities Holding Total
Financiero companies,
HSBC, S.A. shared
de C.V. service
centres and
intra-group
eliminations
$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 costs(1) (25) (30) (61) (8) (14) (14) 1 (6) (157)
Legal provisions(2,3) - (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 and HSBC Bank Middle East Limited HSBC North America Holdings Inc. Grupo Other trading entities(1) Holding Total
Shanghai Financiero companies,
Banking HSBC, S.A. shared
Corporation de C.V. service
Limited centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m
Revenue(2,3)
- 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 impairment(3)
- 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. Grupo Other trading entities Holding Total
Financiero companies,
HSBC, S.A. shared
de C.V. service
centres and
intra-group
eliminations
$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 associate(1) - - (1,136) - - - - - (1,136)
Operating expenses
Disposals, wind-downs, acquisitions and related costs 1 (154) (1) (1) (7) - - (15) (177)
Restructuring and other related costs(2) (73) (201) (120) (11) (34) (14) (8) (14) (475)
Impairment losses of interest in BoCom associate(1) - - (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 and HSBC Bank Middle East Limited HSBC North America Holdings Inc. Grupo Other trading entities(1) Holding Total
Shanghai Financiero companies,
Banking HSBC, S.A. shared
Corporation de C.V. service
Limited centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m
Revenue(2)
- 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. Grupo Other trading entities Holding Total
Financiero companies,
HSBC, S.A. shared
de C.V. service
centres and
intra-group
eliminations
$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 costs(1) 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 Reported profit before tax excluding notable items, strategic transactions and
transactions 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' equity(1)
Basic number of ordinary shares in issue after deducting own shares held
Tangible net asset value per ordinary share Tangible ordinary shareholders' equity(2)
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 NII(3)
Expected credit losses and other credit impairment charges as a % of average Annualised constant currency ECL
gross loans and advances to customers
Constant currency average gross loans and advances to customers
Expected credit losses and other credit impairment charges as a % of average Annualised constant currency ECL
gross loans and advances to customers, including held for sale
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 translation(1) (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 - (964) - - (142)
operating results between periods)(2)
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 translation(1) 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 - (329) - - (9)
operating results between periods)(2)
Constant currency profit before tax excluding notable items and strategic 28,031 26,496 9,103 9,185 8,809
transactions
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 16,447 22,834 4,913 4,602 6,125
intangible assets impairment
Impact of notable items(1) 4,441 (3,442) 1,727 2,498 184
Profit attributable to the ordinary shareholders, excluding goodwill, other 20,888 19,392 6,640 7,100 6,309
intangible assets impairment and notable items
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 UK CIB IWPB Corporate Total
Kong Centre
$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, (661) (160) (393) (182) (165) (1,561)
non-controlling interests
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) (5,618)
(660) (306)
Profit after tax 5,939 3,686 7,061 2,812 4,916 24,414
Less attributable to: preference shareholders, other equity holders, (1,694)
non-controlling interests (760) (160) (480) (153) (141)
Profit attributable to ordinary shareholders of the parent company 5,179 3,526 6,581 2,659 4,775 22,720
Other adjustments 187 162 177 114
(362) (50)
Profit attributable to ordinary shareholders 5,366 3,688 6,218 2,609 4,953 22,834
Impact of notable items - 7 (3,387) (3,442)
(6) (56)
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 14 (2,577) (3,035)
(10) (423) (39)
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 17,183 17,397 17,982
held (millions)
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 % 0.40 0.27 0.40 0.44 0.40
of average gross loans and advances to customers (%)
Expected credit losses and other credit impairment charges (annualised) as a % 0.40 0.27 0.40 0.44 0.40
of average gross loans and advances to customers, including held for sale (%)
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 costs(1) (773) 22 (157) (475) 3
- legal provisions(2, 3) (1,421) - (1,421) - -
Currency translation(4) - (24) - 67 76
Excluding the constant currency impact of the sale of our business in - (462) - - (90)
Argentina and banking business in Canada(5)
Excluding the impact of retranslating prior period costs of hyperinflationary - 39 - 3 15
economies at constant currency foreign exchange rate
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 $m
Profit attributable to shareholders of company 17,341 23,628 5,284 4,733 6,516
Coupon payable on capital securities classified as equity (958) (908) (411) (155) (382)
Profit attributable to ordinary shareholders of company 16,383 22,720 4,873 4,578 6,134
Dilution and impairment losses of interest in associate 1,956 - (32) 1,988 -
Legal provisions(2) 1,100 - 1,100 - -
Impact of disposals, wind-downs, acquisitions and related costs 507 (3,848) 224 215 (36)
- of which: impact of the sale of our banking business in Canada(1) 1 (4,953) 2 1 (4)
- of which: impact of the sale of our business in Argentina 97 1,162 (1) 28 (30)
- of which: other strategic transactions(3) 409 (57) 223 186 (2)
Profit attributable to ordinary shareholders of company excluding material 19,946 18,872 6,165 6,781 6,098
notable items and related impacts
Number of shares
Weighted average basic number of ordinary shares after deducting own shares 17,529 18,493 17,297 17,528 18,151
held (millions)
Basic earnings per share ($) 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 ECL(1)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$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 sale(2) - 11 2,546 2,893 5 5,455 - - (14) (19) - (33)
- other assets(3) 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 sheet(4) 114,479 104,978 395,526 123,851 236 739,070 (27) (107) (241) (6) - (381)
At 30 Sep 2025 416,907 519,690 353,423 72,921 2,731,692 (3,845) (2,182) (3,347) (1,629) (45) (11,048)
1,368,751
Fair value Memorandum allowance for ECL(5)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$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 ECL(1)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$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 sale(2) - 5 670 2,595 3 3,273 - - (4) - - (4)
- other assets(3) 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 (3,234) (1,859) (3,187) (1,484) (56) (9,820)
1,871,005
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 sheet(4) 110,540 91,787 320,383 113,464 191 636,365 (31) (119) (211) (16) - (377)
At 31 Dec 2024 414,859 468,755 325,679 72,664 (3,265) (1,978) (3,398) (1,500) (56) (10,197)
1,225,413 2,507,370
Fair value Memorandum allowance for ECL(5)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$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 UK CIB IWPB Corporate Total
Kong Centre
$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 (2,052)
(720) (232) (345) (728) (27)
Summary of credit risk (excluding debt instruments measured at FVOCI) by stage
distribution and ECL coverage at 30 September 2025
Gross carrying/nominal amount(1) Allowance for ECL ECL coverage %
Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total
$m $m $m $m $m $m $m $m $m $m % % % % %
Loans and advances to customers at amortised 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
cost
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 892,323 1,498 195 1 894,017 (91) (10) (49) - (150) - 0.7 25.1 - -
cost
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 2025(3) 133,856 25,933 315 (1,395) (2,744) (6,833) (76) (11,048) 0.1 2.0 26.3 24.1 0.4
2,571,588 2,731,692
Summary of credit risk (excluding debt instruments measured at FVOCI) by stage
distribution and ECL coverage at 31 December 2024
Gross carrying/nominal amount(1) Allowance for ECL ECL coverage %
Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total
$m $m $m $m $m $m $m $m $m $m % % % % %
Loans and advances to customers at amortised 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
cost
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 826,621 1,806 153 - 828,580 (64) (5) (23) - (92) - 0.3 15.0 - -
cost
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 117,824 23,976 93 (1,296) (2,679) (6,171) (51) (10,197) 0.1 2.3 25.7 54.8 0.4
2,365,477 2,507,370
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 Mainland China France UAE Mexico
Kong
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 average(1) 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 average(1) 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 average(1) 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 average(1) 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 average(1) 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 Mainland China France UAE Mexico
Kong
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 average(1) 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 average(1) 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 average(1) 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 average(1) 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 average(1) 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 Mainland China France UAE Mexico
Kong
GDP level 11.5 (3Q30) 15.2 (3Q30) 20.5 (3Q30) 28.9 (3Q30) 8.5 (3Q30) 28.6 (3Q30) 16.8 (3Q30)
(%, start-to-peak)(1)
Unemployment rate 3.0 (3Q27) 3.5 (1Q27) 2.8 (3Q27) 4.7 (3Q27) 6.6 (2Q27) 2.0 (3Q27) 3.1 (2Q26)
(%, min)(2)
House price index 20.5 (3Q30) 21.2 (3Q30) 21.1 (3Q30) 11.3 (3Q30) 23.3 (3Q30) 22.9 (3Q30) 28.3 (3Q30)
(%, start-to-peak)(1)
Inflation rate 3.6 (4Q25) 3.6 (2Q26) 3.3 (2Q26) 2.0 (1Q26) 2.3 (3Q27) 2.6 (4Q25) 4.3 (1Q26)
(YoY % change, max)(3)
Central bank policy rate 4.1 (4Q25) 4.1 (4Q25) 4.5 (4Q25) 3.4 (3Q26) 2.7 (3Q30) 4.1 (4Q25) 8.2 (3Q30)
(%, max)(3)
Consensus Upside scenario 2025-2029 (as at 4Q24)
UK US Hong Mainland France UAE Mexico
Kong China
GDP level 11.3 (4Q29) 13.6 (4Q29) 21.4 (4Q29) 27.5 (4Q29) 8.9 (4Q29) 28.9 (4Q29) 13.6 (4Q29)
(%, start-to-peak)(1)
Unemployment rate 3.5 (3Q26) 3.6 (1Q26) 2.9 (4Q29) 4.9 (4Q26) 6.4 (4Q26) 2.2 (4Q26) 3.0 (1Q25)
(%, min)(2)
House price index 24.2 (4Q29) 23.6 (4Q29) 25.3 (4Q29) 9.8 (4Q29) 22.8 (4Q29) 26.1 (4Q29) 31.7 (4Q29)
(%, start-to-peak)(1)
Inflation rate 1.4 (1Q26) 1.6 (2Q26) (0.1) (4Q25) (1.0) (4Q25) 0.1 (4Q25) 0.6 (4Q25) 3.1 (2Q26)
(YoY % change, min)(3)
Central bank policy rate 3.6 (4Q25) 3.6 (1Q29) 4.0 (1Q29) 2.7 (1Q26) 1.4 (3Q25) 3.6 (1Q29) 7.6 (1Q26)
(%, min)(3)
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 Mainland China France UAE Mexico
Kong
GDP level (0.6) (4Q27) (1.3) (2Q26) (2.5) (2Q27) (2.2) (2Q26) (0.5) (2Q26) 0.2 (4Q25) (1.0) (1Q26)
(%, start-to-trough)(1)
Unemployment rate 6.5 (3Q26) 5.6 (2Q26) 4.6 (1Q26) 6.7 (3Q27) 8.6 (2Q26) 3.3 (2Q26) 4.3 (3Q26)
(%, max)(2)
House price index (4.6) (1Q27) (3.8) (4Q26) (5.5) (3Q26) (8.3) (2Q27) 0.6 (4Q25) (3.4) (1Q26) 0.6 (4Q25)
(%, start-to-trough)(1)
Inflation rate 1.4 (2Q26) 3.9 (4Q25) 0.4 (3Q26) (3.0) (3Q26) 0.5 (3Q26) 0.6 (3Q26) 5.0 (1Q26)
(YoY % change)(3)
Central bank policy rate 2.4 (2Q28) 4.9 (1Q26) 5.3 (1Q26) 1.7 (2Q26) 0.5 (2Q26) 5.0 (1Q26) 9.8 (1Q26)
(%)(3)
Consensus Downside scenario 2025-2029 (as at 4Q24)
UK US Hong Mainland France UAE Mexico
Kong China
GDP level (1.0) (4Q26) (0.6) (3Q25) (4.5) (4Q25) (2.5) (3Q25) (0.6) (1Q26) 0.3 (1Q25) (2.1) (4Q26)
(%, start-to-trough)(1)
Unemployment rate 6.1 (4Q25) 5.3 (3Q25) 5.1 (2Q26) 6.9 (4Q26) 8.3 (3Q25) 3.4 (1Q26) 4.1 (4Q25)
(%, max)(2)
House price index (4.5) (1Q26) (0.2) (1Q25) (1.9) (2Q26) (12.8) (3Q26) (0.3) (1Q25) (0.4) (1Q25) 2.1 (1Q25)
(%, start-to-trough)(1)
Inflation rate 3.4 (4Q25) 4.5 (1Q26) 3.1 (1Q26) 2.0 (1Q26) 2.6 (3Q25) 2.8 (1Q26) 7.4 (4Q25)
(YoY % change, max)(3)
Central bank policy rate 5.0 (1Q25) 4.8 (1Q25) 5.2 (1Q25) 3.0 (1Q25) 3.2 (1Q25) 4.8 (1Q25) 11.5 (3Q25)
(%, max)(3)
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 Mainland China France UAE Mexico
Kong
GDP level (5.3) (1Q27) (3.8) (4Q26) (9.7) (2Q27) (6.0) (4Q26) (6.2) (1Q27) (5.4) (1Q27) (9.1) (4Q26)
(%, start-to-trough)(1)
Unemployment rate 8.8 (1Q27) 9.0 (3Q27) 6.8 (3Q26) 6.9 (3Q27) 10.8 (4Q27) 3.9 (2Q26) 5.7 (4Q26)
(%, max)(2)
House price index (24.7) (3Q27) (16.8) (3Q26) (21.1) (2Q29) (26.1) (3Q27) (6.4) (2Q27) (28.1) (4Q27) 0.6 (4Q25)
(%, start-to-trough)(1)
Inflation rate (1.8) (3Q26) 4.2 (4Q25) (1.8) (1Q27) (6.5) (3Q26) (0.5) (4Q26) 0.4 (3Q26) 5.2 (1Q26)
(YoY % change)(3)
Central bank policy rate 1.6 (4Q26) 5.0 (1Q26) 5.4 (1Q26) 1.5 (1Q27) 0.0 (2Q26) 5.0 (1Q26) 10.2 (1Q26)
(%)(3)
Downside 2 scenario 2025-2029 (as at 4Q24)
UK US Hong Mainland France UAE Mexico
Kong China
GDP level (9.1) (2Q26) (4.1) (2Q26) (10.1) (4Q25) (8.7) (4Q25) (7.9) (2Q26) (6.8) (2Q26) (10.5) (3Q26)
(%, start-to-trough)(1)
Unemployment rate 8.4 (2Q26) 9.3 (2Q26) 7.1 (1Q26) 7.1 (4Q26) 10.4 (1Q27) 5.0 (3Q25) 5.6 (1Q26)
(%, max)(2)
House price index (27.2) (4Q26) (15.8) (4Q25) (34.4) (3Q27) (30.5) (4Q26) (14.0) (2Q27) (13.2) (2Q27) 2.0 (1Q25)
(%, start-to-trough)(1)
Inflation rate 10.1 (2Q25) 4.9 (4Q25) 3.6 (1Q26) 3.8 (4Q25) 7.6 (2Q25) 3.7 (2Q25) 7.9 (4Q25)
(YoY % change, max)(3)
Central bank policy rate 5.5 (1Q25) 5.5 (1Q25) 5.9 (1Q25) 3.5 (3Q25) 4.2 (1Q25) 5.6 (1Q25) 12.1 (3Q25)
(%, max)(3)
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 Mainland China France UAE Mexico
Kong
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 Wholesale(1)
Total Group ECL at 30 Sep 2025(2) $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 2024(2)
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 2025(1) 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 1(1) 8,975 8,635 22,132
Stage 2(1) 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 UK CIB IWPB Corporate Total
Centre
Kong 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 entities(1)
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. Other trading entities Holding companies, shared service centres and intra-Group eliminations Total
de C.V.
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 risk(2) 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 driver(1)
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. Other trading entities Holding Market risk Total RWAs
de C.V.
companies, shared service centres and intra-Group eliminations
$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 (3.6) 0.1
0.3
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 movements(2) (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 Total
risk RWAs
Hong UK CIB IWPB Corporate
Kong 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 (3.6) 0.1
0.9
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 movements(1) 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: investorrelations@hsbc.com Email: pressoffice@hsbc.com
Hong Kong - Yafei Tian Hong Kong - Aman Ullah
Telephone: +852 2899 8909 Telephone: +852 3941 1120
Email: investorrelations@hsbc.com.hk Email: aspmediarelations@hsbc.com.hk
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
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