2026-02-26 19:48Shareholder Information - HSBC Holdings plc reported a total of 17,175,239,862 ordinary shares outstanding as of the end of the reporting period[6]. - HSBC's American Depositary Shares represent five ordinary shares, facilitating trading on the New York Stock Exchange[4]. - The total dividend per share for 2025 was $0.75, down from $0.87 in 2024[32]. - Total dividends for 2025 amounted to $0.75 per share, a 14% increase from the previous year, with share buy-backs totaling $6 billion, bringing total returns to $18.9 billion[92]. Regulatory Compliance - The company is classified as a large accelerated filer under the Securities Exchange Act of 1934[7]. - HSBC has confirmed compliance with all reporting requirements under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the preceding 12 months[6]. - The company has not indicated any new or revised financial accounting standards that it has elected not to comply with[8]. Financial Performance - Profit before tax for 2025 was $29.9 billion, a decrease from $32.3 billion in 2024[29]. - Reported profit before tax decreased by $2.4bn to $29.9bn, with profit after tax down by $1.9bn to $23.1bn due to notable items[34]. - Revenue of $68.3bn increased by $2.4bn or 4% compared to 2024, with constant currency revenue excluding notable items rising by $3.4bn to $71.0bn[34]. - Operating expenses rose by $3.4 billion or 10% to $36.4 billion, primarily due to notable items including legal provisions and restructuring costs[29]. - The effective tax rate for 2025 was 22.7%, slightly up from 22.6% in 2024, with an adjusted effective rate of 20.6% when excluding non-deductible items[182]. Risk Management - The report highlights the importance of effective risk management and the need for continuous adaptation to evolving market conditions[14]. - HSBC's ability to manage risks related to operational, legal, and regulatory challenges is crucial for its strategic objectives[14]. - Forward-looking statements regarding HSBC's financial condition and strategic priorities are included, emphasizing the inherent risks and uncertainties[12]. - The company is focused on managing ESG-related risks, including climate risk and human rights risks, to support the transition to net zero carbon emissions[13]. Strategic Goals - HSBC aims to become the world's most trusted bank, focusing on customer-centric services[10]. - The company targets a RoTE of 17% or better for 2026, 2027, and 2028, excluding notable items[35]. - The company aims to provide between $750 billion and $1 trillion in sustainable finance and investment by 2030, having facilitated $102 billion in 2025, totaling $495.6 billion since January 2020[73]. - The company aims to deliver an annualised cost reduction of around $1.5bn by the end of 2026 from its organisational simplification programme[40]. Market and Customer Insights - Customer accounts increased by $131.9 billion, with a constant currency growth of $67.6 billion, particularly in the Hong Kong segment[31]. - Customer deposits increased by $68bn in 2025, reaching $1.8tn as of December 31, 2025[114]. - Wealth balances increased by 16% to $2.1tn, with net new invested assets of $80bn, including $39bn booked in Asia[45]. - The Hong Kong business generated revenue of $15.9 billion, a 6% growth, with deposits increasing by 7% to over $540 billion, maintaining a 25% market share[94]. Investment and Innovation - The company has over 100 Generative AI solutions in use, with 85% of employees having access to the HSBC Productivity Suite[135]. - The bank's investment in digital innovation includes the launch of a Tokenised Deposit Service in four markets, enabling real-time settlement for corporate clients[127]. - The company facilitated around $900 billion in trade in 2025, equivalent to the economic output of a G20 economy, enhancing its global network access[95]. Future Projections - Expected ECL charges as a percentage of average gross loans for 2026 is projected to be around 40 basis points[33]. - The company expects banking NII of at least $45bn for 2026 based on current policy rate expectations[37]. - The company targets a mid-teens RoTE for 2026 to 2028, with a revenue growth target of 5% in 2028 compared to 2027, excluding notable items[80].