REG - HSBC Holdings PLC - HSBC Holdings plc 2025 Interim Results
30/07/2025 07:00
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RNS Number : 1292T HSBC Holdings PLC 30 July 2025
HSBC Holdings plc
2025 Interim results
Georges Elhedery, Group CEO, said:
"We're making positive progress in becoming a simple, more agile, focused
organisation built on our core strengths. In the first half, we continued to
execute our strategy with discipline and each of our four businesses sustained
momentum in their earnings with each growing revenue. This gives us confidence
in our ability to deliver our targets. We continue to navigate this period of
economic uncertainty and market volatility from a position of strength,
putting the changing needs of our customers at the heart of everything we do."
Financial performance in 1H25
- Profit before tax decreased by $5.7bn to $15.8bn compared with 1H24,
primarily due to the recognition of dilution and impairment losses of $2.1bn
related to our associate Bank of Communications Co., Limited ('BoCom'). In
addition, there was an adverse impact from the non-recurrence of $3.6bn in net
gains in 1H24 relating to the disposals of our banking business in Canada and
our business in Argentina. Profit after tax of $12.4bn was $5.2bn or 30% lower
compared with 1H24.
- Constant currency profit before tax excluding notable items increased
by $0.9bn to $18.9bn compared with 1H24, from a strong performance in Wealth
in our International Wealth and Premier Banking ('IWPB') and Hong Kong
business segments, supported by higher customer activity, and in Foreign
Exchange and Debt and Equity Markets driven by volatile market conditions.
This was partly offset by higher expected credit losses and other credit
impairment charges ('ECL') and a targeted increase in operating expenses,
which included higher spend and investment in technology.
- Annualised return on average tangible equity ('RoTE') in 1H25 was
14.7%, compared with 21.4% in 1H24. Excluding notable items, annualised RoTE
in 1H25 was 18.2%, a rise of 1.2 percentage points compared with 1H24.
- Revenue decreased by $3.2bn or 9% to $34.1bn compared with 1H24. The
reduction reflected the year-on-year impact of notable items, mainly from
disposals in Canada and Argentina in 1H24. Excluding notable items, revenue
increased primarily due to fee and other income growth in Wealth and in
Foreign Exchange and in Debt and Equity Markets. Constant currency revenue
excluding notable items rose by $1.9bn to $35.4bn compared with 1H24.
- Net interest income ('NII') decreased by $0.1bn compared with 1H24,
including an adverse impact of $0.4bn from foreign currency translation
differences. On a constant currency basis, NII increased as the benefit of our
structural hedge and lower costs of funding offset reductions due to the
business disposals in Argentina and Canada and the impact of lower market
interest rates on asset re-pricing. The reduction in interest rates reduced
the funding costs of the trading book, which led to a fall in banking net
interest income ('banking NII') of $0.9bn or 4% compared with 1H24.
- Net interest margin ('NIM') of 1.57% decreased by 5 basis points
('bps') compared with 1H24, mainly due to an adverse impact from foreign
currency translation differences and the disposal of our business in
Argentina, partly offset by the benefit of our structural hedge.
- ECL of $1.9bn were $0.9bn higher than in 1H24. The charge in 1H25
included charges related to the Hong Kong commercial real estate ('CRE')
sector. This reflected updates to our models used for ECL calculations, an
increase in allowances for new defaulted exposures, as well as the over-supply
of non-residential properties putting continued downward pressure on rental
and capital values. The 1H25 period also included allowances to reflect
heightened uncertainty and a deterioration in the forward economic outlook due
to geopolitical tensions and higher trade tariffs. In 1H24, the ECL charge
benefited from allowance releases, mainly in the UK.
- Operating expenses of $17.0bn were $0.7bn or 4% higher than in 1H24.
Growth reflected restructuring and other related costs associated with our
organisational simplification of $0.6bn. It also included higher spend and
investment in technology. These increases were partly offset by cost
reductions due to our disposals in Canada and Argentina.
- Target basis operating expenses were $0.4bn or 3% higher than in 1H24,
primarily due to higher spend and investment in technology and the impacts of
inflation.
- Customer lending balances of $982bn increased by $51bn compared with
31 December 2024, including favourable foreign currency translation
differences. On a constant currency basis, lending balances increased by $7bn,
mainly in our UK business.
- Customer accounts of $1,719bn increased by $64bn compared with
31 December 2024, including favourable foreign currency translation
differences. On a constant currency basis, customer accounts decreased by
$8bn, mainly from the classification of deposits to held for sale, notably
$12bn related to our custody business in Germany, and outflows in CIB in the
UK, partly offset by an increase in our Hong Kong business.
- Common equity tier 1 ('CET1') capital ratio of 14.6% decreased by 0.3
percentage points compared with 31 December 2024, driven by an increase in
risk-weighted assets ('RWAs'), partly offset by an increase in CET1 capital
through profit generation net of distributions. The increase in RWAs was
mainly driven by foreign currency translation differences and asset size
movements.
- The Board has approved a second interim dividend of $0.10 per share.
We also intend to initiate a share buy-back of up to $3bn, which we expect to
complete by our third quarter 2025 results announcement.
Financial performance in 2Q25
- Profit before tax decreased by $2.6bn or 29% to $6.3bn compared with
2Q24, primarily due to the recognition of dilution and impairment losses of
$2.1bn in BoCom. Profit after tax of $4.9bn was $2.0bn or 29% lower compared
with 2Q24. On a constant currency basis, profit before tax decreased by $2.7bn
or 30%.
- Revenue fell by $0.1bn to $16.5bn compared with 2Q24. The reduction
included the impact of notable items, as mentioned above. Excluding these,
revenue increased primarily due to fee and other income growth in Wealth in
our IWPB and Hong Kong business segments, supported by higher customer
activity, and in Foreign Exchange and in Debt and Equity Markets, driven by
volatile market conditions. Constant currency revenue excluding notable items
rose by $0.8bn to $17.7bn.
- NIM of 1.56% decreased by 3 bps compared with 1Q25, driven by lower
margins in Asia.
- ECL of $1.1bn were $0.7bn higher than in 2Q24. The charge in 2Q25
included charges related to the Hong Kong CRE sector. This reflected updates
to our models used for ECL calculations, an increase in allowances for new
defaulted exposures, as well as the over-supply of non-residential properties
putting continued downward pressure on rental and capital values. In 2Q24, the
ECL charge benefited from a release of allowances in the UK and from a
recovery relating to a single Corporate and Institutional Banking ('CIB')
client.
- Operating expenses of $8.9bn rose by $0.8bn or 10% compared with 2Q24.
The increase was related to restructuring and other related costs associated
with our organisational simplification, and from higher spend and investment
in technology. These increases were partly offset by the impact of the
disposal of our business in Argentina.
- Customer lending increased by $37bn compared with 1Q25 on a reported
basis and by $5bn on a constant currency basis.
- Customer accounts increased by $52bn compared with 1Q25 on a reported
basis and by $2bn on a constant currency basis.
Outlook
- We operate in a global environment characterised by constant change
and uncertainty, creating volatility in both economic forecasts and financial
markets. The Group is well positioned to manage the impacts of these
challenges and is focused on delivering the best outcomes for our customers.
- We continue to target a mid-teens RoTE in each of the three years from
2025 to 2027 excluding notable items. We also continue to expect banking NII
of around $42bn in 2025 based on our latest modelling, recognising the
favourable impacts of foreign exchange rates and the adverse effect of the
fall in the Hong Kong Interbank Offered Rate ('HIBOR'), particularly during
2Q25.
- The Group is well positioned to manage the changes and uncertainties
prevalent within the global environment in which we operate, including in
relation to tariffs. We have modelled a disruptive tariff scenario that
includes significant reductions in policy rates, together with broader
macroeconomic deterioration. While we would expect the direct impact from
tariffs to have a relatively modest impact on our revenue, the broader
macroeconomic deterioration may see RoTE excluding notable items fall outside
of our mid-teens targeted range in future years.
- We now expect ECL charges as a percentage of average gross loans to be
around 40bps in 2025 (including loans held for sale balances). This reflects
continuing challenging market conditions in the Hong Kong CRE sector.
- The Group remains on track to deliver on our cost target. Our growth
in target basis operating expenses in 2025 compared with 2024 remains
approximately 3%. Our cost target includes the impact of
simplification-related saves associated with our announced reorganisation.
- We continue to expect demand for lending to remain muted during 2025.
However, over the medium to long term we expect mid-single digit percentage
growth for year-on-year customer lending balances.
- We continue to expect double-digit percentage average annual growth in
fee and other income in Wealth over the medium term.
- We intend to manage the CET1 capital ratio within our medium-term
target range of 14% to 14.5%, with a dividend payout ratio target basis of 50%
for 2025, excluding material notable items and related impacts.
u Our targets and expectations reflect our current outlook for the global
macroeconomic environment and market-dependent factors, such as market-implied
interest rates (as of mid-July 2025) and rates of foreign exchange, as well as
customer behaviour and activity levels.
u We do not reconcile our forward guidance on RoTE excluding the impact
of notable items, target basis operating expenses, dividend payout ratio
target basis or banking NII to their equivalent reported measures.
u For further details, please refer to the following pages of our Interim
Report 2025: pages 18 to 19 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
67.
Key financial metrics
Half-year to
30 Jun 2025 30 Jun 2024
Reported results
Profit before tax ($m) 15,810 21,556
Profit after tax ($m) 12,441 17,665
Net operating income before change in expected credit losses and other credit 34,122 37,292
impairment charges ('revenue') ($m)
Cost efficiency ratio (%) 49.9 43.7
Net interest margin (%) 1.57 1.62
Basic earnings per share ($) 0.65 0.89
Diluted earnings per share ($) 0.65 0.88
Dividend per ordinary share (in respect of the period) ($)(1) 0.20 0.41
Alternative performance measures
Constant currency profit before tax ($m) 15,810 21,491
Constant currency revenue ($m) 34,122 37,057
Constant currency cost efficiency ratio (%) 49.9 43.7
Constant currency profit before tax excluding notable items ($m) 18,928 18,006
Constant currency revenue excluding notable items ($m) 35,397 33,493
Constant currency profit before tax excluding notable items and strategic 18,928 17,676
transactions ($m)
Constant currency revenue excluding notable items and strategic transactions 35,397 32,672
($m)
Expected credit losses and other credit impairment charges (annualised) as % 0.40 0.20
of average gross loans and advances to customers (%)
Expected credit losses and other credit impairment charges (annualised) as % 0.40 0.20
of average gross loans and advances to customers, including held for sale (%)
Basic earnings per share excluding material notable items and related impacts 0.78 0.68
($)
Return on average ordinary shareholders' equity (annualised) (%) 13.7 19.8
Return on average tangible equity (annualised) (%) 14.7 21.4
Return on average tangible equity excluding notable items (annualised) (%) 18.2 17.0
Target basis operating expenses ($m) 16,179 15,764
At
30 Jun 2025 31 Dec 2024
Balance sheet
Total assets ($m) 3,214,371 3,017,048
Net loans and advances to customers ($m) 981,722 930,658
Customer accounts ($m) 1,718,604 1,654,955
Average interest-earning assets, year to date ($m) 2,159,900 2,099,285
Loans and advances to customers as % of customer accounts (%) 57.1 56.2
Total shareholders' equity ($m) 192,554 184,973
Tangible ordinary shareholders' equity ($m) 159,557 154,295
Net asset value per ordinary share at period end ($) 9.88 9.26
Tangible net asset value per ordinary share at period end ($) 9.17 8.61
Capital, leverage and liquidity
Common equity tier 1 capital ratio (%)(2,3) 14.6 14.9
Risk-weighted assets ($m)(2,3) 886,860 838,254
Total capital ratio (%)(2,3) 20.1 20.6
Leverage ratio (%)(2,3) 5.4 5.6
High-quality liquid assets (liquidity value, average) ($m)(3,4) 678,059 649,210
Liquidity coverage ratio (average) (%)(3,4) 140 138
Share count
Period end basic number of $0.50 ordinary shares outstanding, after deducting 17,397 17,918
own shares held (millions)
Period end basic number of $0.50 ordinary shares outstanding and dilutive 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 17,646 18,357
shares held (millions)
u For reconciliations of our reported results to a constant currency
basis, including lists of notable items, see page 26 of the Interim Report
2025. For detail on other alternative performance measures, including
definitions and calculations, see 'Reconciliation of alternative performance
measures' on pages 38 to 41 of the Interim Report 2025.
1 Dividend per ordinary share for the half-year to 30 June 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 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.
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 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 is based on the average value of the
preceding 12 months.
Highlights
Half-year to
30 Jun 2025 30 Jun 2024
$m $m
Reported
Revenue(1,2,3) 34,122 37,292
Change in expected credit losses and other credit impairment charges (1,941) (1,066)
Operating expenses (17,022) (16,296)
Share of profit in associates and joint ventures less impairment(3) 651 1,626
Profit before tax 15,810 21,556
Tax charge (3,369) (3,891)
Profit after tax 12,441 17,665
Constant currency(4)
Revenue(1,2,3) 34,122 37,057
Change in expected credit losses and other credit impairment charges (1,941) (993)
Operating expenses (17,022) (16,192)
Share of profit in associates and joint ventures less impairment(3) 651 1,619
Profit before tax 15,810 21,491
Tax charge (3,369) (3,870)
Profit after tax 12,441 17,621
Notable items
Revenue
Disposals, wind-downs, acquisitions and related costs(2) (139) 3,571
Dilution loss of interest in BoCom associate(3) (1,136) -
Operating expenses
Disposals, wind-downs, acquisitions and related costs (227) (101)
Restructuring and other related costs(5) (616) 19
Impairment losses of interest in BoCom associate(3) (1,000) -
Tax
Tax credit on notable items 379 14
1 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
2 The amount in 1H25 includes 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 fair value loss on Grupo Financiero
Galicia's ('Galicia') American Depositary Receipts ('ADRs') received as
purchase consideration from the sale of our business in Argentina, which were
disposed of in 2Q25. Amount in 1H24 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 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 'Revenue' and '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 'Share of profit in associates and joint
ventures less impairment' and 'Impairment losses of interest in BoCom
associate'. See Note 10 on page 95 of the Interim Report 2025.
4 Constant currency performance is computed by adjusting reported
results of comparative periods for the effects of foreign currency translation
differences, which distort period-on-period comparisons.
5 Amounts relate to restructuring provisions recognised in 2025 as
well as reversals of restructuring provisions recognised during 2022.
Group CEO's shareholder letter
Dear fellow shareholders,
In my first letter to you I set out a clear vision to unlock HSBC's full
potential. It is built on the principle of becoming a simple, more agile,
focused organisation to better serve our customers. This mission has become
even more important as the world in which we operate becomes even more
uncertain.
By being mission-focused we intend to build on our strong foundations and
hallmark financial strength, growing in areas of core competitive advantage
while remaining true to our values. This will help us to achieve our refreshed
ambition of becoming the most trusted bank globally, putting customers at the
heart of everything we do.
We are making positive progress.
Strong performance
We performed strongly in the first half, delivering an annualised return on
tangible equity ('RoTE') of 14.7%, or 18.2% excluding the impact of notable
items.
Our four businesses performed strongly with revenue growing in each. We are
investing in customer experience, accelerating growth in strategic activities
and harnessing the power of technology to change the way we work to increase
productivity.
In our Hong Kong home market, we attracted a further 600,000 new to bank
customers in the first six months. We also grew deposits by 9% over the last
twelve months on a constant currency basis.
In our UK home market, our loan book grew by 4% on the same basis. We were
particularly encouraged by signs of recovery in lending growth in commercial
banking.
IWPB performed strongly. Our Group-wide wealth businesses grew revenue by 22%,
on a constant currency basis, in line with our medium-term guidance of growing
fee and other income at double-digit rates. In total, we attracted net new
invested assets of $44bn with $27bn booked in Asia.
In CIB, we grew fee and other income by 18% on a constant currency basis. More
than two-fifths of this growth came from our wholesale transaction banking
business.
These strong results enable us to announce a second interim dividend of $0.10
per share and a further share buy-back of up to $3bn. In total, we have
announced $9.5bn in returns to our shareholders through dividends and share
buy-backs in the first half of 2025. We have also reduced our share count by
13% from the first quarter of 2023.
Economic uncertainties
The global economy is facing structural challenges that are both longstanding
and newly unfolding. This is leading to economic uncertainty and market
volatility. The main drivers are the unpredictability of broad-based tariffs
and rising fiscal vulnerabilities. This is complicating the inflation and
interest rate outlook creating greater uncertainty.
Even before tariffs take effect, trade disruptions are reshaping the economic
landscape. One consequence is the adjustment of supply chains.
Differentiated strengths
We are working with our customers to adapt to this operating environment and
changes in the global economy.
First, we enter this period of economic unpredictability from a position of
strength. We have a strong balance sheet and diverse, recurring earnings. Our
highly stable deposit franchise is performing well. This is underpinned by a
strong capital position and a high-quality credit portfolio. Second, the
complex dynamics of a shifting world emphasise the advantages of our scale and
global footprint. That is why customers are turning to us as their trusted
partner.
We operate across the world's key trade routes, including the intra-regional
corridors that have been growing fast over recent years. We have longstanding
experience of facilitating financial flows both globally and through the local
expertise we've gained from being so deeply rooted in economies throughout our
160 year history. We have 5,000 trade specialists in more than 50 markets
operating on both sides of trade flows. This brings significant expertise and
real time insight to our customers.
And we continue to invest in innovative products like HSBC TradePay for Import
Duties, a targeted financing solution for our US customers which simplifies
the payment of import duties whilst helping them optimise working capital.
We are also well placed across many of the world's fastest-growing wealth
markets to help customers navigate greater market volatility as they look to
protect and grow their wealth. Our new state-of-the-art wealth centres in our
home markets of Hong Kong and the UK, and across Asia, offer premium venues to
access personalised wealth management services.
Disciplined delivery of our commitments
We continue to move with energy and intent in the way we deliver our strategy,
the way we find the efficiencies that optimise our resource allocation and the
way we actively and dynamically manage our costs, capital and target
investments.
This can be seen in the momentum in our earnings, the discipline in our
execution, and the confidence we have in our ability to deliver our targets.
The tighter, talented leadership team I have put in place at the Group
Operating Committee continue to sharpen the focus of our four businesses with
direct influence over strategy and execution, alongside accountability for
driving results.
Organisational simplification
Together, we are making meaningful progress in our mission to deliver $1.5bn
of annualised savings, with actions taken in the first half resulting in
$0.7bn of these cost saves. We remain on track to realise the full $1.5bn in
2027.
Reallocation from non-strategic activities
We are also making progress in our efforts to generate incremental investment
capacity for our priority growth areas.
We have announced the strategic disposals of our business in Uruguay, Bahrain
retail operations, UK life insurance subsidiary, German custody and fund
administration businesses and our French portfolio of home and other loans
retained following the disposal of our retail operations in France.
We have also taken action to refocus our investment bank, making progress on
the winding down of our M&A and equity capital markets activities in
Europe, the UK and the Americas to focus on Asia and the Middle East where we
have regional market leadership and significant room to grow. We have also
expanded our focus on our debt capabilities globally, comprising our Debt
Capital Markets and Leveraged and Acquisition Finance franchises, to include
our Private Debt activities.
Investing for growth
By creating this capacity, our priority is investing for growth. In our home
markets we will expand the number of wealth centres and enhance our wealth
capabilities in Hong Kong, which is expected to become the world's leading
cross-border wealth centre. In the UK, we will enhance our SME coverage and
proposition.
In CIB, we will further enhance our transaction banking capabilities,
including in global payments, trade solutions and foreign exchange where we
have leading global propositions. We will also invest in security services,
where we have a leading position in Asia and the Middle East.
In IWPB, we continue to hire new relationship managers across our priority
growth markets, launch new wealth products and invest in technology and
training to improve customer experience.
We will also modernise the bank by capturing the opportunity of AI and
generative AI, and improve customer service through both our mobile apps and
contact centres. We will increase productivity with tools such as coding
assistants, and improve process efficiency in areas such as onboarding, KYC,
credit applications and many others.
High performance culture
At the same time, we are instilling a culture of excellence, leadership and
accountability throughout the bank. This culture prioritises customer
centricity and high performance. As part of this, we have launched a bank-wide
leadership programme designed to make culture an enabler of our ambition and
strategy.
Thank you
Finally, I want to thank my valued colleagues around the world, whose talent
and drive enable us to make a difference daily for our customers.
I also want to thank our customers for their partnership and trust.
Looking ahead, with firm foundations in place, clarity in our strategy,
discipline in our execution and dynamism in our culture, momentum continues to
build.
We are confident in our ability to deliver against our targets, including a
mid-teens RoTE, excluding notable items, for 2025, 2026 and 2027.
We are working towards achieving our ambition of becoming the most trusted
bank globally, putting customers at the heart of everything we do.
By doing this, we remain focused on generating strategic growth and delivering
attractive returns for you, our shareholders.
Georges Elhedery
Group CEO
30 July 2025
Financial summary
Half-year to
30 Jun 2025 30 Jun 2024
$m $m
For the period
Profit before tax 15,810 21,556
Profit attributable to:
- ordinary shareholders of the parent company 11,510 16,586
Dividends on ordinary shares(1) 8,147 11,691
At the period end
Total shareholders' equity 192,554 183,293
Total regulatory capital 178,496 172,084
Customer accounts 1,718,604 1,593,834
Total assets 3,214,371 2,975,003
Risk-weighted assets 886,860 835,118
Per ordinary share $ $
Basic earnings 0.65 0.89
Dividend per ordinary share (paid in the period)(1) 0.46 0.62
Net asset value(2) 9.88 8.97
1 The $0.46 dividend paid during the period 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 a first interim dividend of
$0.10 per ordinary share in respect of the financial year ending 31 December
2025 paid in June 2025.
2 The definition of net asset value per ordinary share is total
shareholders' equity, less non-cumulative preference shares and capital
securities, divided by the basic number of ordinary shares in issue, excluding
own shares held by the parent company, including those purchased and held in
treasury.
Distribution of results by business segments(1)
Constant currency profit before tax
Half-year to
30 Jun 2025 30 Jun 2024
$m % $m %
Hong Kong 4,674 29.6 4,754 22.1
UK 3,281 20.8 3,533 16.4
Commercial and Institutional Banking 6,362 40.2 6,121 28.5
International Wealth and Premier Banking 2,092 13.2 2,267 10.6
Corporate Centre (599) (3.8) 4,816 22.4
Profit before tax 15,810 100.0 21,491 100.0
1 Effective from 1 January 2025, the Group's operating segments
comprise four new businesses: Hong Kong, UK, Corporate and Institutional
Banking ('CIB') and International Wealth and Premier Banking ('IWPB'), along
with Corporate Centre. All segmental comparative data have been re-presented
on this basis.
Distribution of results by legal entity
Reported profit/(loss) before tax
Half-year to
30 Jun 2025 30 Jun 2024
$m % $m %
HSBC UK Bank plc 3,618 22.9 3,734 17.3
HSBC Bank plc 1,493 9.4 1,436 6.7
The Hongkong and Shanghai Banking Corporation Limited 9,384 59.4 10,893 50.5
HSBC Bank Middle East Limited 568 3.6 536 2.5
HSBC North America Holdings Inc. 490 3.1 423 2.0
HSBC Bank Canada - - 186 0.9
Grupo Financiero HSBC, S.A. de C.V. 330 2.1 466 2.2
Other trading entities(1) 817 5.2 1,034 4.7
Holding companies, shared service centres and intra-Group eliminations(2) (890) (5.7) 2,848 13.2
Profit before tax 15,810 100.0 21,556 100.0
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 the Group's reported profit before tax of $770m.
2 The period to 30 June 2024 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 recycling losses. This
was partly offset by a $1.2bn impairment recognised in relation to the sale of
our business in Argentina.
HSBC constant currency profit before tax and balance sheet data
Half-year to 30 Jun 2025
Hong UK CIB IWPB Corporate Total
Kong Centre
$m $m $m $m $m $m
Net operating income/(expense) before change in expected credit losses and 7,848 6,228 14,117 7,011 (1,082) 34,122
other credit impairment charges(1,2)
- external 5,037 6,678 19,648 5,964 (3,205) 34,122
- inter-segment 2,811 (450) (5,531) 1,047 2,123 -
- of which: net interest income/(expense)(3) 5,875 5,306 7,014 3,657 (5,031) 16,821
Change in expected credit losses and other credit impairment charges (864) (323) (299) (453) (2) (1,941)
Net operating income/(expense) 6,984 5,905 13,818 6,558 (1,084) 32,181
Total operating expenses (2,310) (2,624) (7,456) (4,468) (164) (17,022)
Operating profit/(loss) 4,674 3,281 6,362 2,090 (1,248) 15,159
Share of profit in associates and joint ventures less impairment(2) - - - 2 649 651
Constant currency profit/(loss) before tax 4,674 3,281 6,362 2,092 (599) 15,810
% % % % % %
Share of HSBC's constant currency profit/(loss) before tax 29.6 20.8 40.2 13.2 (3.8) 100.0
Constant currency cost efficiency ratio 29.4 42.1 52.8 63.7 (15.2) 49.9
Constant currency balance sheet data $m $m $m $m $m $m
Loans and advances to customers (net) 230,139 299,631 304,240 147,523 189 981,722
Interests in associates and joint ventures - - 116 526 27,560 28,202
Total external assets 433,153 443,023 1,763,915 435,437 138,843 3,214,371
Customer accounts 517,406 360,494 564,847 275,504 353 1,718,604
Constant currency risk-weighted assets(3) 140,630 152,894 411,223 91,036 91,077 886,860
Half-year to 30 Jun 2024(5)
Net operating income before change in expected credit losses and other credit 7,432 5,994 13,333 6,933 3,365 37,057
impairment charges(1)
- external 4,769 6,280 19,696 5,689 623 37,057
- inter-segment 2,663 (286) (6,363) 1,244 2,742 -
- of which: net interest income/(expense)(3) 5,928 5,026 7,314 4,131 (5,865) 16,534
Change in expected credit losses and other credit impairment charges (338) (58) (175) (416) (6) (993)
Net operating income 7,094 5,936 13,158 6,517 3,359 36,064
Total operating expenses (2,340) (2,403) (7,037) (4,277) (135) (16,192)
Operating profit 4,754 3,533 6,121 2,240 3,224 19,872
Share of profit in associates and joint ventures - - - 27 1,592 1,619
Constant currency profit before tax 4,754 3,533 6,121 2,267 4,816 21,491
% % % % % %
Share of HSBC's constant currency profit before tax 22.1 16.4 28.5 10.6 22.4 100.0
Constant currency cost efficiency ratio 31.5 40.1 52.8 61.7 4.0 43.7
Constant currency balance sheet data $m $m $m $m $m $m
Loans and advances to customers (net) 236,309 286,915 300,392 140,795 8,368 972,779
Interests in associates and joint ventures - - 132 561 28,047 28,740
Total external assets 413,491 428,708 1,702,163 399,795 140,213 3,084,370
Customer accounts 474,140 352,573 558,629 266,148 421 1,651,911
Constant currency risk-weighted assets(4) 144,066 137,465 390,640 88,370 92,772 853,313
1 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
2 Amount in 'Net operating income before change in expected credit
losses and other credit impairment charges' includes 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'. See Note 10 on page 95 of the Interim Report 2025.
3 Net interest expense recognised in the Corporate Centre includes
1H25: $4.7bn (1H24: $5.5bn) of interest expense in relation to the internal
cost to fund trading and fair value net assets; and the funding cost of
foreign exchange swaps in our Markets Treasury function.
4 Constant currency risk-weighted assets are calculated using reported
risk-weighted assets adjusted for the effects of currency translation
differences.
5 Comparative information for the prior year has been re-presented to
reflect the Group's revised segment structure, which became effective on 1
January 2025.
Consolidated income statement
Half-year to
30 Jun 2025 30 Jun 2024
$m $m
Net interest income 16,821 16,911
- interest income 49,008 55,372
- interest expense (32,187) (38,461)
Net fee income 6,643 6,200
- fee income 8,640 8,158
- fee expense (1,997) (1,958)
Net income from financial instruments held for trading or managed on a fair 10,547 10,516
value basis(1)
Net income from assets and liabilities of insurance businesses, including 5,113 2,376
related derivatives, measured at fair value through profit or loss
Insurance finance expense (5,329) (2,486)
Insurance service result 785 662
- insurance service revenue 1,511 1,310
- insurance service expense (726) (648)
Gain less impairment relating to sale of business operations(2) (34) 3,256
Other operating (expense)/income(3) (424) (143)
Net operating income before change in expected credit losses and other credit 34,122 37,292
impairment charges(4)
Change in expected credit losses and other credit impairment charges (1,941) (1,066)
Net operating income 32,181 36,226
Employee compensation and benefits (9,903) (9,192)
General and administrative expenses (4,894) (5,135)
Depreciation and impairment of property, plant and equipment and right-of-use (955) (867)
assets
Amortisation and impairment of intangible assets (1,270) (1,102)
Total operating expenses (17,022) (16,296)
Operating profit 15,159 19,930
Share of profit in associates and joint ventures 1,651 1,626
Impairment of interest in associate(3) (1,000) -
Profit before tax 15,810 21,556
Tax expense (3,369) (3,891)
Profit after tax 12,441 17,665
Attributable to:
- ordinary shareholders of the parent company 11,510 16,586
- other equity holders 547 526
- non-controlling interests 384 553
Profit after tax 12,441 17,665
$ $
Basic earnings per ordinary share 0.65 0.89
Diluted earnings per ordinary share 0.65 0.88
1 The amount in 1H25 includes 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 fair value loss on Grupo Financiero
Galicia's ('Galicia') American Depositary Receipts ('ADRs') received as
purchase consideration from the sale of our business in Argentina, which were
disposed of in 2Q25. Amount in 1H24 includes a $255m gain on the foreign
exchange hedging of the proceeds from the sale of our banking business in
Canada.
2 Includes amounts from 'Other operating income' relating to the
execution of all sales of business operations. In 1H24, 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 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 was recognised.
3 The amount in 1H25 'Other operating (expense)/income' includes 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'. See Note 10 on page 95 of
the Interim Report 2025.
4 Net operating income before change in expected credit losses and other
credit impairment charges, also referred to as revenue.
Consolidated statement of comprehensive income
Half-year to
30 Jun 2025 30 Jun 2024
$m $m
Profit for the period 12,441 17,665
Other comprehensive income/(expense)
Items that will be reclassified subsequently to profit or loss when specific
conditions are met:
Debt instruments at fair value through other comprehensive income(1) 205 (213)
- fair value gains/(losses) 640 (378)
- fair value gains transferred to the income statement on disposal (83) (24)
- expected credit losses recognised in the income statement 2 13
- disposal of subsidiary - 90
- income taxes (354) 86
Cash flow hedges 1,891 (710)
- fair value losses (568) (612)
- fair value losses/(gains) reclassified to the income statement 3,037 (673)
- disposal of subsidiary - 262
- income taxes (578) 313
Share of other comprehensive (expense)/income of associates and joint ventures (59) 211
- share for the period (3) 211
- other comprehensive income reclassified to the income statement on (56) -
dilution of interest in an associate
Net finance income from insurance contracts 16 17
- before income taxes 21 23
- income taxes (5) (6)
Exchange differences 6,404 (2,588)
- foreign exchange losses reclassified to the income statement on disposal 224 648
or dilution of a foreign operation(2)
- other exchange differences 6,180 (3,236)
Items that will not be reclassified subsequently to profit or loss:
Fair value gains on property revaluation 14 5
Remeasurement of defined benefit (liability)/asset (347) 146
- before income taxes (461) 178
- income taxes 114 (32)
Changes in fair value of financial liabilities designated at fair value upon 242 (283)
initial recognition arising from changes in own credit risk
- before income taxes 315 (372)
- income taxes (73) 89
Equity instruments designated at fair value through other comprehensive income 93 41
- fair value gains 88 62
- income taxes 5 (21)
Effects of hyperinflation 81 892
Other comprehensive income/(expense) for the period, net of tax 8,540 (2,482)
Total comprehensive income for the period 20,981 15,183
Attributable to:
- ordinary shareholders of the parent company 19,917 14,131
- other equity holders 547 526
- non-controlling interests 517 526
Total comprehensive income for the period 20,981 15,183
1 Amount in 1H25 includes a $1.4bn pre-tax fair value loss (including
foreign exchange movements) in other comprehensive income on a retained
portfolio of home and other loans associated with the sale of our retail
banking operations in France. The loss arose largely upon reclassification
from hold-to-collect to hold-to-collect-and-sell business model on 1 January
2025, resulting in its remeasurement from amortised cost to fair value through
other comprehensive income.
2 Amount in 1H25 includes a $197m foreign exchange translation
reserves loss recycled to the income statement as a result of the dilution of
the shareholding in BoCom.
Consolidated balance sheet
At
30 Jun 2025 31 Dec 2024
$m $m
Assets
Cash and balances at central banks 246,360 267,674
Hong Kong Government certificates of indebtedness 42,592 42,293
Trading assets 333,745 314,842
Financial assets designated and otherwise mandatorily measured at fair value 128,942 115,769
through profit or loss
Derivatives 249,672 268,637
Loans and advances to banks 107,582 102,039
Loans and advances to customers 981,722 930,658
Reverse repurchase agreements - non-trading 283,204 252,549
Financial investments 547,955 493,166
Assets held for sale 38,978 27,234
Prepayments, accrued income and other assets 204,370 152,740
Current tax assets 1,364 1,313
Interests in associates and joint ventures 28,202 28,909
Goodwill and intangible assets 13,022 12,384
Deferred tax assets 6,661 6,841
Total assets 3,214,371 3,017,048
Liabilities
Hong Kong currency notes in circulation 42,592 42,293
Deposits by banks 97,782 73,997
Customer accounts 1,718,604 1,654,955
Repurchase agreements - non-trading 195,532 180,880
Trading liabilities 70,653 65,982
Financial liabilities designated at fair value 163,589 138,727
Derivatives 257,601 264,448
Debt securities in issue 102,129 105,785
Liabilities of disposal groups held for sale 46,165 29,011
Accruals, deferred income and other liabilities 167,062 130,340
Current tax liabilities 3,232 1,729
Insurance contract liabilities 118,297 107,629
Provisions 2,125 1,724
Deferred tax liabilities 1,570 1,317
Subordinated liabilities 27,569 25,958
Total liabilities 3,014,502 2,824,775
Equity
Called up share capital 8,739 8,973
Share premium account 14,918 14,810
Other equity instruments 20,716 19,070
Other reserves (1,556) (10,282)
Retained earnings 149,737 152,402
Total shareholders' equity 192,554 184,973
Non-controlling interests 7,315 7,300
Total equity 199,869 192,273
Total liabilities and equity 3,214,371 3,017,048
Consolidated statement of changes in equity
Other reserves
Called up share Other Cash Foreign Merger and other Insurance Retained Total share-holders' equity Non- Total equity
capital equity Financial assets at FVOCI reserve(1) flow exchange reserves finance earnings controlling
and share premium instru-ments hedging reserve reserve(2) interests
reserve
$m $m $m $m $m $m $m $m $m $m $m
At 1 Jan 2025 23,783 19,070 (3,246) (1,079) (32,887) 26,328 602 152,402 184,973 7,300 192,273
Profit for the period - - - - - - - 12,057 12,057 384 12,441
Other comprehensive income (net of tax) - - 6 1,734 6,630 14 102 (79) 8,407 133 8,540
- debt instruments at fair value through other comprehensive - - 177 - - - - - 177 28 205
income
- equity instruments designated at fair value through other - - 57 - - - - - 57 36 93
comprehensive
income
- cash flow hedges - - - 1,794 - - - - 1,794 97 1,891
- changes in fair value of financial liabilities designated at - - - - - - - 242 242 - 242
fair value
upon initial recognition arising from changes in own credit
risk
- property revaluation - - - - - 14 - - 14 - 14
- remeasurement of defined benefit asset/(liability) - - - - - - - (343) (343) (4) (347)
- share of other comprehensive income of associates and joint - - - - - - - (3) (3) - (3)
ventures
- effects of hyperinflation - - - - - - - 81 81 - 81
- foreign exchange losses reclassified to income statement on - - - - 224 - - - 224 - 224
disposal or
dilution of a foreign operation(3)
- other reserves reclassified - - - - - - - (56) (56) - (56)
to income statement on
disposal or dilution of a foreign operation(3)
- insurance finance income recognised in other comprehensive - - - - - - 16 - 16 - 16
income
- other exchange differences - - (228) (60) 6,406 - 86 - 6,204 (24) 6,180
Total comprehensive income for the period - - 6 1,734 6,630 14 102 11,978 20,464 517 20,981
Shares issued under employee remuneration and share plans 113 - - - - - - (113) - - -
Capital securities issued(4) - 4,096 - - - - - - 4,096 - 4,096
Dividends to shareholders - - - - - - - (8,694) (8,694) (477) (9,171)
Redemption of securities(5) - (2,450) - - - - - - (2,450) - (2,450)
Cost of share-based payment arrangements - - - - - - - 316 316 - 316
Share buy-backs(6) - - - - - - - (5,023) (5,023) - (5,023)
Cancellation of shares (239) - - - - 239 - - - - -
Other movements - - 1 - - - - (1,129) (1,128) (25) (1,153)
At 30 Jun 2025 23,657 20,716 (3,239) 655 (26,257) 26,581 704 149,737 192,554 7,315 199,869
Consolidated statement of changes in equity (continued)
Other reserves
Called up Other Financial assets at FVOCI reserve Cash Foreign exchange reserve Merger and Insurance Retained Total Non- Total
share capital equity flow other reserves finance earnings share- controlling equity
and share premium instru- hedging reserve(2) holders' interests
ments reserve equity
$m $m $m $m $m $m $m $m $m $m $m
At 1 Jan 2024 24,369 17,719 (3,507) (1,033) (33,753) 28,601 785 152,148 185,329 7,281 192,610
Profit for the period - - - - - - - 17,112 17,112 553 17,665
Other comprehensive income (net of tax) - - (164) (691) (2,551) 5 (10) 956 (2,455) (27) (2,482)
- debt instruments at fair value through other comprehensive - - (313) - - - - - (313) 10 (303)
income
- equity instruments designated at fair value through other - - 35 - - - - - 35 6 41
comprehensive
income
- cash flow hedges - - - (970) - - - - (970) (972)
(2)
- changes in fair value of financial liabilities designated at - - - - - - - (283) (283) - (283)
fair value
upon initial recognition arising from changes in own credit
risk
- property revaluation - - - - - 5 - - 5 - 5
- remeasurement of defined benefit asset/(liability) - - - - - - - 136 136 10 146
- share of other comprehensive income of associates and joint - - - - - - - 211 211 - 211
ventures
- effects of hyperinflation - - - - - - - 892 892 - 892
- foreign exchange losses reclassified to income statement on - - - - 648 - - - 648 - 648
disposal or
dilution of a foreign operation
- other reserves reclassified to income statement on disposal - - 90 262 - - - - 352 - 352
or dilution of
a foreign operation
- insurance finance income recognised in other comprehensive - - - - - - 17 - 17 - 17
income
- other exchange differences - - 24 17 (3,199) - (27) - (3,185) (51) (3,236)
Total comprehensive income for the period - - (164) (691) (2,551) 5 (10) 18,068 14,657 526 15,183
Shares issued under employee remuneration and share plans 75 - - - - - - (75) - - -
Capital securities issued - 1,106 - - - - - - 1,106 - 1,106
Dividends to shareholders - - - - - - - (12,217) (12,217) (468) (12,685)
Cost of share-based payment arrangements - - - - - - - 274 274 - 274
Transfers - - - - - (2,945) - 2,945 - - -
Share buy-backs - - - - - - - (5,019) (5,019) - (5,019)
Cancellation of shares (326) - - - - 326 - - - - -
Other movements - - 4 - - 3 - (844) (837) (218) (1,055)
At 30 Jun 2024 24,118 18,825 (3,667) (1,724) (36,304) 25,990 775 155,280 183,293 7,121 190,414
Consolidated statement of changes in equity (continued)
Other reserves
Called up Other Financial assets at FVOCI reserve Cash Foreign exchange reserve Merger and Insurance Retained Total Non- Total
share capital equity flow other reserves finance earnings share- controlling equity
and share premium instru- hedging reserve(2) holders' interests
ments reserve equity
$m $m $m $m $m $m $m $m $m $m $m
At 1 Jul 2024 24,118 18,825 (3,667) (1,724) (36,304) 25,990 775 155,280 183,293 7,121 190,414
Profit for the period - - - - - - - 6,867 6,867 467 7,334
Other comprehensive income (net of tax) - - 423 645 3,414 - (173) 62 4,371 51 4,422
- debt instruments at fair value through other comprehensive income - - 375 - - - - - 375 6 381
- equity instruments designated at fair value through other comprehensive - - 40 - - - - - 40 18 58
income
- cash flow hedges - - - 658 - - - - 658 - 658
- changes in fair value of financial liabilities designated at fair value - - - - - - - (156) (156) - (156)
upon initial recognition arising from changes in own credit risk
- property revaluation - - - - - - - - - - -
- remeasurement of defined benefit asset/(liability) - - - - - - - (380) (380) 6 (374)
- share of other comprehensive income of associates and joint ventures - - - - - - - 251 251 - 251
- effects of hyperinflation - - - - - - - 347 347 - 347
- foreign exchange losses reclassified to income statement on disposal or - - - - 5,168 - - - 5,168 - 5,168
dilution of a foreign operation
- other reserves reclassified to income statement on disposal or dilution of - - (5) - - - - - (5) - (5)
a foreign operation
- insurance finance income recognised in other comprehensive income - - - - - - (159) - (159) - (159)
- other exchange differences - - 13 (13) (1,754) - (14) - (1,768) 21 (1,747)
Total comprehensive income for the period - - 423 645 3,414 - (173) 6,929 11,238 518 11,756
Shares issued under employee remuneration and share plans 2 - - - - - - (2) - - -
Capital securities issued - 2,495 - - - - - - 2,495 - 2,495
Dividends to shareholders - - - - - - - (4,193) (4,193) (222) (4,415)
Redemption of securities - (2,250) - - - - - - (2,250) - (2,250)
Cost of share-based payment arrangements - - - - - - - 255 255 - 255
Share buy-backs - - - - - - - (6,024) (6,024) - (6,024)
Cancellation of shares (337) - - - - 337 - - - - -
Other movements - - (2) - 3 1 - 157 159 (117) 42
At 31 Dec 2024 23,783 19,070 (3,246) (1,079) (32,887) 26,328 602 152,402 184,973 7,300 192,273
1 Amount in 1H25 includes $1.4bn of pre-tax cumulative unrealised loss
in other comprehensive income, including foreign exchange movements shown in
'Other exchange differences', on a retained portfolio of home and certain
other loans associated with the sale of our retail banking operations in
France. The loss arose largely upon reclassification from hold-to-collect to a
hold-to-collect-and-sell business model on 1 January 2025, resulting in its
remeasurement from amortised cost to fair value through other comprehensive
income.
2 The insurance finance reserve reflects the impact of adoption of the
other comprehensive income option for our insurance business in France.
Underlying assets supporting these contracts are measured at fair value
through other comprehensive income. Under this option, only the amount that
matches income or expenses recognised in profit or loss on underlying items is
included in finance income or expenses, resulting in the elimination of income
statement accounting mismatches. The remaining amount of finance income or
expenses for these insurance contracts is recognised in other comprehensive
income ('OCI').
3 Amount in 1H25 includes the recycling of a $197m foreign currency
translation reserves loss and $56m other reserves gain as a result of the
dilution of the shareholding in BoCom.
4 HSBC Holdings issued $1,500m 6.950% contingent convertible
securities in February 2025, and a further SGD800m 5.000% and $2,000m 7.050%
contingent convertible securities in March and June 2025, respectively. All
instruments were recorded net of issuance costs.
5 In March 2025, HSBC Holdings redeemed its $2,450m 6.375% contingent
convertible securities.
6 HSBC Holdings announced the following share buy-backs during 1H25: a
share buy-back of up to $2.0bn in February 2025, which was completed in April
2025; and a share buy-back of up to $3.0bn in May 2025, which was completed in
July 2025.
Consolidated statement of cash flows
Half-year to
30 Jun 2025 30 Jun 2024
$m $m
Profit before tax 15,810 21,556
Adjustments for non-cash items:
Depreciation, amortisation and impairment 2,225 1,969
Net loss/(gain) from investing activities(1) 1,127 (34)
Share of profit in associates and joint ventures (1,651) (1,626)
Impairment of interest in associate(2) 1,000 -
Net loss/(gain) on acquisition/disposal of subsidiaries, businesses, 73 (3,199)
associates and joint ventures
Change in expected credit losses gross of recoveries and other credit 2,077 1,192
impairment charges
Provisions including pensions 584 15
Share-based payment expense 315 274
Other non-cash items included in profit before tax (2,732) (4,237)
Elimination of exchange differences(3) (41,720) 18,406
Change in operating assets(4) (136,572) (41,493)
Change in operating liabilities 174,060 36,486
Dividends received from associates 850 130
Contributions paid to defined benefit plans (67) (76)
Tax paid (2,197) (2,664)
Net cash from operating activities 13,182 26,699
Purchase of financial investments (266,941) (259,999)
Proceeds from the sale and maturity of financial investments 232,360 223,443
Net cash flows from the purchase and sale of property, plant and equipment (504) (464)
Net investment in intangible assets (1,316) (1,058)
Net cash inflow on acquisition/disposal of subsidiaries, businesses, - 9,891
associates and joint ventures(5)
Net cash outflow on acquisition/disposal of subsidiaries, businesses, (29) (10,612)
associates and joint ventures(5)
Net cash from investing activities (36,430) (38,799)
Issue of ordinary share capital and other equity instruments 4,096 1,106
Share buy-backs (5,386) (5,330)
Net sales/(purchases) of own shares for market-making and investment purposes (1,100) (494)
Redemption of preference shares and other equity instruments (2,450) -
Subordinated loan capital issued 2,340 2,611
Subordinated loan capital repaid (1,986) (2,000)
Dividends paid to shareholders of the parent company and non-controlling (9,171) (12,685)
interests
Net cash from financing activities (13,657) (16,792)
Net decrease in cash and cash equivalents (36,905) (28,892)
Cash and cash equivalents at the beginning of the period 434,940 490,933
Exchange differences in respect of cash and cash equivalents 30,872 (13,057)
Cash and cash equivalents at the end of the period(6) 428,907 448,984
Interest received was $50,078m (1H24: $54,197m), interest paid was $35,065m
(1H24: $41,254m) and dividends received (excluding dividends received from
associates, which are presented separately above) were $1,339m (1H24:
$1,231m).
1 Amount in 1H25 includes a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
2 Amount in 1H25 includes a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in BoCom.
3 Adjustments to bring changes between opening and closing balance
sheet amounts to average rates. This is not done on a line-by-line basis, as
details cannot be determined without unreasonable expense.
4 Includes net settlement of the foreign exchange hedge of the
proceeds from the sale of our banking business in Canada, nil in 1H25 (1H24:
$255m gain).
5 The 'Net cash inflow on acquisition/disposal of subsidiaries,
businesses, associates and joint ventures' includes $9.3bn of net cash inflow
on the sale of our banking business in Canada in March 2024. The 'Net cash
outflow on acquisition/disposal of subsidiaries, businesses, associates and
joint ventures' includes $10.6bn of net cash outflow on the sale of our retail
banking operations in France in January 2024.
6 Includes $2.5bn (1H24: $1.7bn) of cash and cash equivalents
classified as held for sale.
1 Basis of preparation and material accounting policies
(a) Compliance with International Financial Reporting Standards
Our interim condensed consolidated financial statements have been prepared on
the basis of the policies set out in the 2024 annual financial statements.
They have also been prepared in accordance with IAS 34 'Interim Financial
Reporting' as adopted by the UK, IAS 34 'Interim Financial Reporting' as
issued by the International Accounting Standards Board ('IASB'), IAS 34
'Interim Financial Reporting' as adopted by the EU, and the Disclosure
Guidance and Transparency Rules sourcebook of the UK's Financial Conduct
Authority. Therefore, they include an explanation of events and transactions
that are significant to an understanding of the changes in HSBC's financial
position and performance since the end of 2024.
The interim condensed consolidated financial statements should be read in
conjunction with the Annual Report and Accounts 2024, which was prepared in
accordance with UK-adopted international accounting standards in conformity
with the requirements of the Companies Act 2006 and international financial
reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it
applies in the European Union. The interim condensed consolidated financial
statements were also prepared in accordance with International Financial
Reporting Standards ('IFRS Accounting Standards') as issued by the IASB,
including interpretations issued by the IFRS Interpretations Committee.
At 30 June 2025, there were no IFRS Accounting Standards effective for the
half-year to 30 June 2025 affecting these financial statements that were not
approved for adoption in the UK by the UK Endorsement Board. There was no
difference between IFRS Accounting Standards adopted by the UK, IFRS
Accounting Standards as adopted by the EU, and IFRS Accounting Standards
issued by the IASB in terms of their application to HSBC.
Standards applied during the half-year to 30 June 2025
There were no new standards or amendments to standards that had a material
effect on these interim condensed consolidated financial statements.
(b) Use of estimates and judgements
Management believes that the critical estimates and judgements applicable to
the Group are those that relate to impairment of amortised cost and FVOCI debt
financial assets, the valuation of financial instruments, deferred tax assets,
provisions, interests in associates, impairment of goodwill and non-financial
assets, and post-employment benefit plans. The Group does not consider there
to be a significant risk of a material adjustment to the carrying amount of
goodwill in this financial year, but does consider this to be an area that is
inherently judgemental. The Group's consideration of this risk includes taking
account of the implications for cash-generating units arising from the revised
organisational structure that has been effective from 1 January 2025.
There were no material changes in the current period to any of the critical
estimates and judgements disclosed in 2024, which are stated on pages 88 and
354 to 365 of the Annual Report and Accounts 2024.
(c) Composition of the Group
There were no material changes in the composition of the Group in the
half-year to 30 June 2025.
For details of future business acquisitions and disposals, see Note 15 'Assets
held for sale, liabilities of disposal groups held for sale and business
acquisitions' in the Interim Report 2025.
(d) Future accounting developments
Amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial
Instruments: Disclosures'
In May 2024, the IASB issued amendments to IFRS 9 'Financial Instruments' and
IFRS 7 'Financial Instruments: Disclosures', effective for annual reporting
periods beginning on, or after, 1 January 2026. In addition to guidance as to
when certain financial liabilities can be deemed settled when using an
electronic payment system, the amendments also provide further clarification
regarding the classification of financial assets that contain contractual
terms that change the timing or amount of contractual cash flows, including
those arising from ESG-related contingencies, and financial assets with
certain non-recourse features. The Group is currently undertaking an
assessment of the potential impact.
IFRS 18 'Presentation and Disclosure in Financial Statements'
In April 2024, the IASB issued IFRS 18 'Presentation and Disclosure in
Financial Statements', effective for annual reporting periods beginning on or
after 1 January 2027. The new accounting standard aims to give users of
financial statements more transparent and comparable information about an
entity's financial performance. It will replace IAS 1 'Presentation of
Financial Statements' but carries over many requirements from that IFRS
Accounting Standard unchanged. In addition, there are three sets of new
requirements relating to the structure of the income statement,
management-defined performance measures and the aggregation and disaggregation
of financial information.
While IFRS 18 will not change recognition criteria or measurement bases, it
might have a significant impact on presenting information in the financial
statements, in particular the income statement. HSBC are currently assessing
impacts and data readiness.
(e) Going concern
The financial statements are prepared on a going concern basis, as the
Directors are satisfied that the Group and parent company have the resources
to continue in business for the foreseeable future. In making this assessment,
the Directors have considered a wide range of information relating to present
and future conditions, including future projections of profitability, cash
flows, capital requirements and capital resources. These considerations
include stressed scenarios that reflect the uncertainty in the macroeconomic
environment, as well as considering potential impacts from other top and
emerging risks, including climate change, as well as the related impacts on
profitability, capital and liquidity.
(f) Accounting policies
The accounting policies that we applied for these interim condensed
consolidated financial statements are consistent with those described on pages
353 to 365 of the Annual Report and Accounts 2024, as are the methods of
computation.
2 Dividends
On 30 July 2025, the Directors approved a second interim dividend for 2025 of
$0.10 per ordinary share in respect of the financial year ending 31 December
2025. This distribution amounts to approximately $1.74bn and will be payable
on 26 September 2025. No liability is recognised in the financial statements
in respect of these dividends.
Dividends paid to shareholders of HSBC Holdings plc
Half-year to
30 Jun 2025 30 Jun 2024
Per share Total Per share Total
$ $m $ $m
Dividends paid on ordinary shares
In respect of previous year:
- fourth interim dividend 0.36 6,397 0.31 5,872
In respect of current year:
- first interim dividend 0.10 1,750 0.10 1,877
- special dividend - - 0.21 3,942
Total 0.46 8,147 0.62 11,691
Total coupons on capital securities classified as equity 547 526
Dividends to shareholders 8,694 12,217
Second interim dividend for 2025
On 30 July 2025, the Directors approved a second interim dividend in respect
of the financial year ending 31 December 2025 of $0.10 per ordinary share (the
'dividend'), a distribution of approximately $1.74bn. The dividend will be
payable on 26 September 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 15 August 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 15 September 2025. The ordinary shares in London, Hong Kong
and Bermuda will be quoted ex-dividend on 14 August 2025. American Depositary
Shares ('ADSs') in New York will be quoted ex-dividend on 15 August 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 10 September 2025 to be
effective for this dividend.
The dividend will be payable on ADSs, each of which represents five ordinary
shares, on 26 September 2025 to holders of record on 15 August 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 5 September 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 15 August
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 15 August 2025. Any person wishing to remove
ordinary shares to or from each register must do so before 4.00pm local time
on 14 August 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
15 August 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 share
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 September 2025 to holders of record on
29 August 2025.
3 Earnings per share
Basic earnings per ordinary share is calculated by dividing the profit
attributable to ordinary shareholders of the parent company by the weighted
average number of ordinary shares outstanding, after deducting own shares
held. Diluted earnings per ordinary share is calculated by dividing the basic
earnings, which require no adjustment for the effects of dilutive potential
ordinary shares, by the weighted average number of ordinary shares
outstanding, excluding own shares held, plus the weighted average number of
ordinary shares that would be issued on conversion of dilutive potential
ordinary shares.
Basic and diluted earnings per share
Half-year to
30 Jun 2025 30 Jun 2024
Profit Number Amount Profit Number Amount
of shares per share of shares per share
$m (millions) $ $m (millions) $
Basic(1) 11,510 17,646 0.65 16,586 18,666 0.89
Effect of dilutive potential ordinary shares 126 120
Diluted(1) 11,510 17,772 0.65 16,586 18,786 0.88
1 Weighted average number of ordinary shares outstanding (basic) or
assuming dilution (diluted).
4 Constant currency balance sheet reconciliation
At 30 Jun 2025 At 30 June 2024 At 31 Dec 2024
Reported and constant currency Constant currency Currency translation Reported Constant currency Currency translation Reported
$m $m $m $m $m $m $m
Loans and advances to customers (net) 981,722 972,779 34,522 938,257 974,647 43,989 930,658
Interests in associates and joint ventures 28,202 28,740 275 28,465 29,273 364 28,909
Total external assets 3,214,371 3,084,370 109,367 2,975,003 3,152,674 135,626 3,017,048
Customer accounts 1,718,604 1,651,911 58,077 1,593,834 1,726,199 71,244 1,654,955
5 Reported and constant currency results(1)
Half-year to
30 Jun 2025 30 Jun 2024
$m $m
Revenue(2)
Reported 34,122 37,292
Currency translation - (235)
Constant currency 34,122 37,057
Change in expected credit losses and other credit impairment charges
Reported (1,941) (1,066)
Currency translation - 73
Constant currency (1,941) (993)
Operating expenses
Reported (17,022) (16,296)
Currency translation - 104
Constant currency (17,022) (16,192)
Share of profit in associates and joint ventures less impairment
Reported 651 1,626
Currency translation - (7)
Constant currency 651 1,619
Profit before tax
Reported 15,810 21,556
Currency translation - (65)
Constant currency 15,810 21,491
Profit after tax
Reported 12,441 17,665
Currency translation - (44)
Constant currency 12,441 17,621
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.
Notable items
Half-year to
30 Jun 2025 30 Jun 2024
$m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) (139) 3,571
Dilution loss of interest in BoCom associate(2) (1,136) -
Operating expenses
Disposals, wind-downs, acquisitions and related costs (227) (101)
Restructuring and other related costs(3) (616) 19
Impairment losses of interest in BoCom associate(2) (1,000) -
Tax
Tax (charge)/credit on notable items 379 14
1 Amount in 1H25 include fair value losses on ADRs in Galicia received
as a part of the sale consideration for HSBC Argentina, which were sold in
2Q25.
2 Amount in 1H25 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'. See Note 10 of the Interim Report 2025 for further details.
3 Amounts relate to restructuring provisions recognised in 2025 as
well as reversals of restructuring provisions recognised during 2022.
6 Contingent liabilities, contractual commitments and guarantees
At
30 Jun 2025 31 Dec 2024
$m $m
Guarantees and other contingent liabilities:
- financial guarantees 16,605 16,998
- performance and other guarantees 98,103 92,723
- other contingent liabilities 299 298
At the end of the period 115,007 110,019
Commitments:(1)
- documentary credits and short-term trade-related transactions 6,489 7,096
- forward asset purchases and forward deposits placed 110,784 61,017
- standby facilities, credit lines and other commitments to lend 822,726 793,465
At the end of the period 939,999 861,578
1 Includes $691,705m of commitments at 30 June 2025 (31 December 2024:
$619,367m), to which the impairment requirements in IFRS 9 are applied where
HSBC has become party to an irrevocable commitment.
Contingent liabilities arising from legal proceedings and regulatory and other
matters against Group companies are excluded from this note but are disclosed
in Note 7 below and Notes 11 and 13 of the Interim Report 2025.
7 Legal proceedings and regulatory matters
HSBC is party to legal proceedings and regulatory matters in a number of
jurisdictions arising out of its normal business operations. Apart from the
matters described below, HSBC considers that none of these matters are
material. The recognition of provisions is determined in accordance with the
accounting policies set out in Note 1 of the Annual Report and Accounts 2024.
While the outcomes of legal proceedings and regulatory matters are inherently
uncertain, management believes that, based on the information available to it,
appropriate provisions have been made in respect of these matters as at 30
June 2025 (see Note 11 of the Interim Report 2025). Where an individual
provision is material, the fact that a provision has been made is stated and
quantified, except to the extent that doing so would be seriously prejudicial.
Any provision recognised does not constitute an admission of wrongdoing or
legal liability. It is not practicable to provide an aggregate estimate
of potential liability for our legal proceedings and regulatory matters as a
class of contingent liabilities.
Bernard L. Madoff Investment Securities LLC
Various non-US HSBC companies provided custodial, administration and similar
services to a number of funds incorporated outside the US whose assets were
invested with Bernard L. Madoff Investment Securities LLC ('Madoff
Securities'). Based on information provided by Madoff Securities as at 30
November 2008, the purported aggregate value of these funds was $8.4bn,
including fictitious profits reported by Madoff. Based on information
available to HSBC, the funds' actual transfers to Madoff Securities minus
their actual withdrawals from Madoff Securities during the time HSBC serviced
the funds are estimated to have totalled approximately $4bn. Various HSBC
companies have been named as defendants in lawsuits arising out of Madoff
Securities' fraud.
Trustee litigation: The Madoff Securities trustee (the 'Trustee') has brought
lawsuits in the US against various HSBC companies and others seeking recovery
of alleged transfers from Madoff Securities to the HSBC companies in the
amount of $543m (plus interest), and these lawsuits remain pending in the US
Bankruptcy Court for the Southern District of New York.
The Trustee has filed a claim against various HSBC companies in the High Court
of England and Wales seeking recovery of alleged transfers from Madoff
Securities to the HSBC companies. The claim has not yet been served and the
amount claimed has not been specified.
Fairfield Funds litigation: Fairfield Sentry Limited, Fairfield Sigma Limited
and Fairfield Lambda Limited (each in liquidation and together, the 'Fairfield
Funds') have brought lawsuits in the US against various HSBC companies and
others seeking recovery of alleged transfers from the Fairfield Funds to the
HSBC companies (that acted as nominees for clients) in the amount of $382m
(plus interest). Fairfield Funds' claims against most of the HSBC companies
have been dismissed, but remain pending on appeal before the US Court of
Appeals for the Second Circuit. Fairfield Funds' claims against HSBC Private
Bank (Suisse) SA and HSBC Securities Services Luxembourg ('HSSL') have not
been dismissed and are ongoing before the US Bankruptcy Court for the Southern
District of New York. HSBC Private Bank (Suisse) SA and HSSL have appealed the
decision not to dismiss them and these appeals are pending before the US Court
of Appeals for the Second Circuit.
Herald Fund SPC ('Herald') litigation: HSSL and HSBC Bank plc are defending an
action brought by Herald (in liquidation) before the Luxembourg District Court
seeking restitution of securities and cash in the amount of $2.5bn (plus
interest), or damages in the amount of $5.6bn (plus interest). In 2013, the
Luxembourg District Court dismissed Herald's securities restitution claim and
stayed the cash restitution and damages claims. In December 2024, the
Luxembourg Court of Appeal reversed the Luxembourg District Court's dismissal
and determined that Herald's claims for restitution of securities and cash
against HSSL were founded in principle. HSSL has appealed this decision and a
hearing before the Luxembourg Court of Cassation is listed for September 2025.
Herald's claim against HSBC Bank plc is pending.
Alpha Prime Fund Limited ('Alpha Prime') litigation: Various HSBC companies
are defending a number of actions brought by Alpha Prime in the Luxembourg
District Court seeking damages for alleged breach of contract and negligence
in the amount of $1.16bn (plus interest). These matters are currently pending
before the Luxembourg District Court.
In November 2024, Alpha Prime served various HSBC companies with a lawsuit
filed in the Bermuda Supreme Court seeking damages for unspecified amounts for
alleged breach of contract and negligence. This claim is currently stayed.
Senator Fund SPC ('Senator') litigation: HSSL and the Luxembourg branch of
HSBC Bank plc are defending a number of actions brought by Senator before the
Luxembourg District Court seeking restitution of securities in the amount of
$625m (plus interest), or damages in the amount of $188m (plus interest).
These matters are currently pending before the Luxembourg District Court.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of these matters, including the timing or any
possible impact on HSBC, which could be significant.
US Anti-Terrorism Act litigation
Since November 2014, a number of lawsuits have been filed in federal courts in
the US against various HSBC companies and others on behalf of plaintiffs who
are, or are related to, alleged victims of terrorist attacks in the Middle
East. In each case, it is alleged that the defendants aided and abetted the
unlawful conduct of various sanctioned parties in violation of the US
Anti-Terrorism Act, or provided banking services to customers alleged to have
connections to terrorism financing. Seven actions, which seek damages for
unspecified amounts, remain pending and HSBC's motions to dismiss have been
granted in three of these cases. These dismissals are subject to appeals
and/or the plaintiffs re-pleading their claims. The four other actions are at
an early stage.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of these matters, including the timing or any
possible impact on HSBC, which could be significant.
US dollar Libor litigation
Beginning in 2011, HSBC and other panel banks have been named as defendants in
a number of individual and putative class action lawsuits filed in federal and
state courts in the US with respect to the setting of US dollar Libor. The
complaints assert claims under various US federal and state laws, including
antitrust and racketeering laws and the US Commodity Exchange Act ('CEA').
HSBC has concluded class settlements with five groups of plaintiffs, and
several class action lawsuits brought by other groups of plaintiffs have been
voluntarily dismissed. Two individual US dollar Libor-related actions seeking
damages from HSBC for unspecified amounts remain pending.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of the pending matters, including the timing or
any possible impact on HSBC, which could be significant.
Foreign exchange-related investigations and litigation
In December 2016, Brazil's Administrative Council of Economic Defense
initiated an investigation into the onshore foreign exchange market and
identified a number of banks, including HSBC, as subjects of its
investigation, which remains ongoing. Lawsuits alleging foreign
exchange-related misconduct remain pending against HSBC and other banks in
courts in Brazil.
Since 2017, HSBC Bank plc, among other financial institutions, has been
defending a complaint filed by the Competition Commission of South Africa
before the South African Competition Tribunal for alleged anti-competitive
behaviour in the South African foreign exchange market. In 2020, a revised
complaint was filed which also named HSBC Bank USA N.A. ('HSBC Bank USA') as a
defendant. In January 2024, the South African Competition Appeal Court
dismissed HSBC Bank USA from the revised complaint but denied HSBC Bank plc's
application to dismiss. Both the Competition Commission and HSBC Bank plc have
appealed to the Constitutional Court of South Africa.
HSBC Bank plc and HSBC Holdings have reached a settlement with plaintiffs in
Israel to resolve a class action filed in the local courts alleging foreign
exchange-related misconduct. The settlement remains subject to court approval.
In February 2024, HSBC Bank plc and HSBC Holdings were joined to an existing
claim brought in the UK Competition Appeals Tribunal against various other
banks alleging historical anti-competitive behaviour in the foreign exchange
market and seeking approximately £3bn in damages from all the defendants.
This matter is at an early stage.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of these matters, including the timing or any
possible impact on HSBC, which could be significant.
Precious metals fix-related litigation
US litigation: HSBC and other members of The London Silver Market Fixing
Limited are defending a class action pending in the US District Court for the
Southern District of New York alleging that, from January 2007 to December
2013, the defendants conspired to manipulate the price of silver and silver
derivatives for their collective benefit in violation of US antitrust laws,
the CEA and New York state law. In May 2023, this action, which seeks damages
for unspecified amounts, was dismissed but remains pending on appeal.
Canada litigation: HSBC and other financial institutions are defending
putative class actions filed in the Ontario and Quebec Superior Courts of
Justice alleging that the defendants conspired to manipulate the price of
silver, gold and related derivatives in violation of the Canadian Competition
Act and common law. These actions each seek CA$1bn in damages plus CA$250m in
punitive damages. Two of the actions are proceeding and the others have been
stayed.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of these matters, including the timing or any
possible impact on HSBC, which could be significant.
Tax-related investigations
Since 2023, the French National Financial Prosecutor has been investigating a
number of banks, including HSBC Continental Europe and the Paris branch of
HSBC Bank plc, in connection with alleged tax fraud related to the dividend
withholding tax treatment of certain trading activities. HSBC Bank plc and the
German branch of HSBC Continental Europe also continue to cooperate with
investigations by the German public prosecutor into numerous financial
institutions and their employees, in connection with the dividend withholding
tax treatment of certain trading activities.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of these matters, including the timing or any
possible impact on HSBC, which could be significant.
Gilts trading investigation and litigation
Since 2018, the UK Competition and Markets Authority ('CMA') has been
investigating HSBC and four other banks for suspected anti-competitive conduct
in relation to the historical trading of gilts and related derivatives. In
February 2025, the CMA announced the conclusion of its investigation and
imposed a £23.4m fine on HSBC, which has been paid. This matter is now
closed.
In June 2023, HSBC Bank plc and HSBC Securities (USA) Inc., among other banks,
were named as defendants in a putative class action filed in the US District
Court for the Southern District of New York by plaintiffs alleging
anti-competitive conduct in the gilts market and seeking damages for
unspecified amounts. Certain of the defendants, including HSBC Bank plc and
HSBC Securities (USA) Inc., have reached a settlement with the plaintiffs to
resolve this matter. The settlement remains subject to final court approval.
Korean short selling indictment
In March 2024, the Korean Prosecutors' Office issued a criminal indictment
against The Hongkong and Shanghai Banking Corporation Limited ('HBAP') and
three current and former employees for breaching short selling rules under the
Financial Investment Services and Capital Markets Act in connection with
trades carried out between August 2021 and December 2021. In February 2025,
the Korean court acquitted HBAP of all charges. The Korean Prosecutors' Office
has appealed this decision. Proceedings against the individual defendants have
been suspended.
Investigations involving HSBC Private Bank (Suisse) SA
Law enforcement authorities in Switzerland and France are investigating HSBC
Private Bank (Suisse) SA in connection with alleged money laundering offences
in respect of two historical banking relationships. These investigations are
at an early stage.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of these matters, including the timing or any
possible impact on HSBC, which could be significant.
First Citizens litigation
In May 2023, First-Citizens Bank & Trust Company ('First Citizens')
brought a lawsuit in the US District Court for the Northern District of
California against various HSBC companies and seven US-based HSBC employees
who had previously worked for Silicon Valley Bank ('SVB'). The lawsuit seeks
$1bn in damages and alleges, among other things, that the various HSBC
companies conspired with the individual defendants to solicit employees from
First Citizens and that the individual defendants took confidential
information belonging to SVB and/or First Citizens. In July 2024, the court
dismissed several of First Citizens' claims and also dismissed certain
defendants for lack of jurisdiction, but allowed limited discovery into
whether some of these defendants may be subject to jurisdiction. The remaining
claims are proceeding against certain defendants.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of this matter, including the timing or any
possible impact on HSBC, which could be significant.
US mortgage securitisation litigation
Beginning in 2014, a number of lawsuits were filed in various state and
federal courts in the US against HSBC Bank USA, as a trustee of more than 280
mortgage securitisation trusts, seeking unspecified damages for losses in
collateral value allegedly sustained by the trusts. Nearly all of these
lawsuits have either been settled or dismissed; one action remains pending in
a New York state court.
HSBC Bank USA and certain of its affiliates continue to defend a mortgage loan
repurchase action seeking unspecified damages and specific performance brought
by the trustee of a mortgage securitisation trust in New York state court.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of these matters, including the timing or any
possible impact on HSBC, which could be significant.
Mexican government bond litigation
HSBC Mexico S.A. and other banks are named as defendants in a consolidated
putative class action pending in the US District Court for the Southern
District of New York alleging anti-competitive conduct related to Mexican
government bond transactions between 2010 and 2014 and seeking unspecified
damages. In January 2025, the court denied the defendants' motion to dismiss
the plaintiffs' third amended complaint, and this action is proceeding.
Based on the facts currently known, it is not practicable at this time for
HSBC to predict the resolution of this matter, including the timing or any
possible impact on HSBC, which could be significant.
Other regulatory investigations, reviews and litigation
HSBC Holdings and/or certain of its affiliates are also subject to a number of
other enquiries and examinations, requests for information, investigations and
reviews by various tax authorities, regulators, competition and law
enforcement authorities, as well as legal proceedings including litigation,
arbitration and other contentious proceedings, in connection with various
matters arising out of their businesses and operations.
At the present time, HSBC does not expect the ultimate resolution of any of
these matters to be material to the Group's financial position; however, given
the uncertainties involved in legal proceedings and regulatory matters, there
can be no assurance regarding the eventual outcome of a particular matter or
matters.
8 Events after the balance sheet date
A second interim dividend for 2025 of $0.10 per ordinary share in respect of
the financial year ending 31 December 2025 was approved by the Directors on
30 July 2025, as described in Note 2. On 30 July 2025, HSBC Holdings
announced its intention to initiate a share buy-back to purchase its ordinary
shares up to a maximum consideration of $3.0bn, which is expected to commence
shortly and complete by our third quarter 2025 results announcement.
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 transaction is expected to complete in
early 2026.
On 11 July 2025, HSBC Continental Europe reached an agreement to sell its fund
administration business, Internationale Kapitalanlagegesellschaft mbH, to
BlackFin Capital Partners S.A.S. The potential transaction is subject to
customary regulatory and competition approvals as well as the conclusion of
negotiations with the German works council, and is expected to complete in the
second half of 2026.
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
its portfolio of home and certain other loans retained after the sale of its
French retail banking operations. The potential transaction, which remains
subject to relevant information and consultation processes with respective
works councils, is expected to complete in the fourth quarter of 2025, when
cumulative fair value losses recognised through other comprehensive income
would recycle to the income statement. These stood at $1.4bn at 30 June 2025.
On 27 July 2025, HSBC Latin America Holdings (UK) Limited, a direct subsidiary
of HSBC Holdings plc, entered into a binding agreement for the sale of its
direct subsidiary, HSBC Bank (Uruguay) S.A., to a subsidiary of BTG Pactual
Holding SA. The planned sale, which remains subject to regulatory approval, is
targeted for completion in the second half of 2026.
9 Capital structure
Capital ratios
At
30 Jun 2025 31 Dec 2024
% %
Transitional basis
Common equity tier 1 ratio 14.6 14.9
Tier 1 ratio 17.0 17.2
Total capital ratio 20.1 20.6
End point basis
Common equity tier 1 ratio 14.6 14.9
Tier 1 ratio 17.0 17.2
Total capital ratio 20.1 20.1
Total regulatory capital and risk-weighted assets
At
30 Jun 2025 31 Dec 2024
$m $m
Transitional basis
Common equity tier 1 capital 129,819 124,911
Additional tier 1 capital 20,800 19,216
Tier 2 capital 27,877 28,259
Total regulatory capital 178,496 172,386
Risk-weighted assets 886,860 838,254
End point basis
Common equity tier 1 capital 129,819 124,911
Additional tier 1 capital 20,800 19,216
Tier 2 capital 27,877 24,401
Total regulatory capital 178,496 168,528
Risk-weighted assets 886,860 838,254
Leverage ratio
At
30 Jun 2025 31 Dec 2024
$bn $bn
Tier 1 capital (leverage) 150.6 144.1
Total leverage ratio exposure 2,792.9 2,571.1
% %
Leverage ratio 5.4 5.6
10 Statutory accounts
The information in this news release is unaudited and does not constitute
statutory accounts within the meaning of section 434 of the Companies Act
2006. The statutory accounts of HSBC Holdings plc for the year ended 31
December 2024 have been delivered to the Registrar of Companies in England and
Wales in accordance with section 447 of the Companies Act 2006. The Group's
auditor, PricewaterhouseCoopers LLP ('PwC') has reported on those accounts.
Its report was unqualified, did not include a reference to any matters to
which PwC drew attention by way of emphasis without qualifying its report and
did not contain a statement under section 498(2) or (3) of the Companies Act
2006.
The information in this news release does not constitute the unaudited interim
condensed consolidated financial statements which are contained in the Interim
Report 2025. The Interim Report 2025 was approved by the Board of Directors on
30 July 2025. The unaudited interim condensed consolidated financial
statements included in the Interim Report 2025 have been reviewed by the
Group's auditor, PwC, in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom. The full report of its review, which
was unmodified, is included in the Interim Report 2025.
11 Dealings in HSBC Holdings listed securities
HSBC has policies and procedures that, except where permitted by statute and
regulation, prohibit it undertaking specified transactions in respect of its
securities listed on The Stock Exchange of Hong Kong Limited ('HKEx'). Except
for dealings as intermediaries or as trustees by subsidiaries of HSBC
Holdings, or in relation to HSBC Holdings ordinary share buy-backs, neither
HSBC Holdings nor any of its subsidiaries has purchased, sold or redeemed any
of its securities listed on HKEx during the half-year ended 30 June 2025.
12 Earnings release and final results
An earnings release for the three-month period ending 30 September 2025 is
expected to be issued on 28 October 2025. The results for the year to 31
December 2025 are expected to be announced on 25 February 2026.
13 Corporate governance
We are subject to corporate governance requirements in both the UK and Hong
Kong. Throughout the six months ended 30 June 2025, we complied with the
provisions of the 2024 UK Corporate Governance Code, effective 1 January 2025
and also the requirements of the Hong Kong Corporate Governance Code. The UK
Corporate Governance Code is available at www.frc.org.uk and the Hong Kong
Corporate Governance Code is available at www.hkex.com.hk. Reporting on
compliance with revisions to the Hong Kong Corporate Governance Code, which
were implemented by HKEx with effect from 1 July 2025, will commence within
our 2026 Annual Report and Accounts to be published in February 2027,
consistent with the guidance issued by the HKEx in May 2025.
The Board has codified obligations for transactions in Group securities in
accordance with the requirements of the UK Market Abuse Regulation and the
rules governing the listing of securities on the HKEx, save that the HKEx has
granted waivers from strict compliance with the rules that take into account
accepted practices in the UK, particularly in respect of employee share plans.
All Directors have confirmed that they have complied with their obligations in
respect of transacting in Group securities throughout the period.
There have been no material changes to the information disclosed in the Annual
Report and Accounts 2024 in respect of the remuneration of employees,
remuneration policies, bonus and share option plans and training schemes.
Details of the number of employees are provided on page 22 of the Interim
Report 2025.
The Board of Directors of HSBC Holdings plc as at the date of this
announcement comprises:
Sir Mark Edward Tucker*, 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(†), Brendan Robert
Nelson(†) and Swee Lian Teo(†).
* Non-executive Group Chairman
† Independent non-executive Director
14 Interim Report 2025
The Interim Report 2025 will be made available to shareholders on or about 22
August 2025. Copies of the Interim Report 2025 and this news release may be
obtained from Global Communications, HSBC Holdings plc, 8 Canada Square,
London E14 5HQ, United Kingdom; from Communications (Asia), The Hongkong and
Shanghai Banking Corporation Limited, 1 Queen's Road Central, Hong Kong; or
from US Communications, HSBC Bank USA, N.A., 1 West 39th Street, 9th Floor,
New York, NY 10018, USA. The Interim Report 2025 and this news release may
also be downloaded from the HSBC website, www.hsbc.com.
A Chinese translation of the Interim Report 2025 is available upon request
from Computershare Hong Kong Investor Services Limited, Rooms 1712-1716, 17th
Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong.
The Interim Report 2025 will be available on The Stock Exchange of Hong Kong
Limited's website www.hkex.com.hk.
15 Cautionary statement regarding forward-looking statements
This news release may contain projections, estimates, forecasts, targets,
commitments, ambitions, opinions, prospects, results, returns and
forward-looking statements with respect to the financial condition, results of
operations, capital position, environment, social and governance ('ESG')
related matters, strategy and business of the Group which can be identified by
the use of forward-looking terminology such as 'may', 'will', 'should',
'expect', 'anticipate', 'project', 'estimate', 'seek', 'intend', 'target',
'plan', 'believe', 'potential' or 'reasonably possible', or the negatives
thereof or other variations thereon or comparable terminology (together,
'forward-looking statements'), including the strategic priorities and any
financial, investment and capital targets and any ESG ambitions, targets and
commitments described herein.
Any such forward-looking statements are not a reliable indicator of future
performance, as they may involve significant stated or implied assumptions and
subjective judgements which may or may not prove to be correct. There can be
no assurance that any of the matters set out in forward-looking statements are
attainable, will actually occur or will be realised or are complete or
accurate. The assumptions and judgements may prove to be incorrect and involve
known and unknown risks, uncertainties, contingencies and other important
factors, many of which are outside the control of the Group.
Actual achievements, results, performance or other future events or conditions
may differ materially from those stated, implied and/or reflected in any
forward-looking statements due to a variety of risks, uncertainties and other
factors (including, without limitation, those which are referable to general
market or economic conditions, regulatory and government policy changes
(including trade and tariff policies such as the trade policies announced by
the US and potential countermeasures that may be adopted by countries,
including in the markets where the Group operates), increased volatility in
interest rates and inflation levels and other macroeconomic risks,
geopolitical tensions such as the Russia-Ukraine war and the conflict in the
Middle East and the continuation or escalation thereof, specific economic
developments, such as the uncertain performance of the commercial real estate
sectors in mainland China and Hong Kong, or as a result of data limitations
and changes in applicable methodologies in relation to ESG related matters).
Any such forward-looking statements are based on the beliefs, expectations and
opinions of the Group at the date the statements are made, and the Group does
not assume, and hereby disclaims, any obligation or duty to update, revise or
supplement them if circumstances or management's beliefs, expectations or
opinions should change. For these reasons, recipients should not place
reliance on, and are cautioned about relying on, any forward-looking
statements. No representations or warranties, expressed or implied, are given
by or on behalf of the Group as to the achievement or reasonableness of any
projections, estimates, forecasts, targets, commitments, ambitions, prospects
or returns contained herein.
Additional detailed information concerning important factors, including but
not limited to ESG related factors, that could cause actual results to differ
materially from this news release is available in our Annual Report and
Accounts for the fiscal year ended 31 December 2024 filed with the US
Securities and Exchange Commission (the 'SEC') on Form 20-F on 20 February
2025, our 1Q 2025 Earnings Release furnished to the SEC on Form 6-K on 29
April 2025 and our Interim Report 2025 for the six months ended 30 June 2025
which we expect to furnish to the SEC on Form 6-K on or around 30 July 2025.
16 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 the interim condensed
consolidated financial statements starting on page 77 of the Interim Report
2025.
To measure our performance, we supplement our IFRS Accounting Standards
figures with non-IFRS Accounting Standards measures, which constitute
alternative performance measures under European Securities and Markets
Authority guidance and non-GAAP financial measures defined in and presented in
accordance with US Securities and Exchange Commission rules and regulations.
These measures include those derived from our reported results that eliminate
factors that distort period-on-period comparisons. The 'constant currency
performance' measure used in this report is described below. Definitions and
calculations of other alternative performance measures are included in
'Alternative performance measures' on pages 38 to 41 of the Interim Report
2025, which is available at www.hsbc.com. All alternative performance measures
are reconciled to the closest reported performance measure.
The business segmental results are presented on a constant currency basis in
accordance with IFRS 8 'Operating Segments' as detailed in Note 5: 'Segmental
analysis' on page 86 of the Interim Report 2025.
Constant currency performance
Constant currency performance is computed by adjusting reported results for
the effects of foreign currency translation differences, which distort
period-on-period comparisons.
We consider constant currency performance to provide useful information for
investors by aligning internal and external reporting, and reflecting how
management assesses period-on-period performance.
Notable items
We separately disclose 'notable items', which are components of our income
statement that management considers 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.
u For further information on our use of alternative performance
measures, see pages 18 and 38 of the Interim Report 2025.
17 Certain defined terms
Unless the context requires otherwise, 'HSBC Holdings' means HSBC Holdings plc
and 'HSBC', the 'Group', 'we', 'us' and 'our' refer to HSBC Holdings together
with its subsidiary undertakings. Within this document the Hong Kong Special
Administrative Region of the People's Republic of China is referred to as
'Hong Kong'. When used in the terms 'shareholders' equity' and 'total
shareholders' equity', 'shareholders' means holders of HSBC Holdings ordinary
shares and those preference shares and capital securities issued by HSBC
Holdings classified as equity. The abbreviations '$m' and '$bn' represent
millions and billions (thousands of millions) of US dollars, respectively.
18 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 on 1 January 1959 with limited liability
under the UK Companies Act
Registration number
617987
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