Financial Performance - In 2025, group revenues grew by 5% to $71 billion, while profit before tax rose by 7% to a record $36.6 billion [5][28] - Return on tangible equity was reported at 17.2%, achieving the mid-teens target [5][28] - Customer deposit balances increased by $78 billion to $1.8 trillion, reflecting a 5% growth [16][28] Business Line Performance - Transaction banking revenues grew by 4%, driven by elevated market activity [5] - Wealth management revenues surged by 24%, indicating strong growth in the fastest-growing wealth markets [6] - Banking net interest income (NII) for the full year was $44.1 billion, with Q4 NII at $11.7 billion, reflecting a $0.7 billion increase [20][16] Market Performance - The U.K. business saw a 13% growth in business banking lending, excluding COVID loan run-off [10] - Hong Kong's market is expected to become the world's leading cross-border wealth hub by 2029, with significant growth anticipated [11][12] - Asia and the Middle East are increasingly central to global trade and capital flows, with HSBC positioned to capture these opportunities [12] Company Strategy and Industry Competition - HSBC is focusing on four core businesses: U.K., Hong Kong, Corporate and Institutional Banking, and International Wealth and Premier Banking, all generating above mid-teens return on tangible equity [8] - The company aims to simplify operations and reduce costs, targeting $1.5 billion in annualized simplification savings [9] - New growth targets for 2026-2028 include a revenue growth target of 5% and a return on tangible equity of 17% or better [14][29] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainty from a position of strength, emphasizing the importance of disciplined execution of strategy [15] - The company anticipates continued growth in deposits and a positive outlook for Banking NII, despite potential rate changes [20][72] - Management highlighted the importance of investing in technology and customer-centric initiatives to drive future growth [13][59] Other Important Information - The privatization of Hang Seng Bank was completed ahead of schedule, expected to generate $0.9 billion in benefits by 2028 [18][31] - The CET1 capital ratio increased to 14.9%, reflecting strong organic capital generation [17][27] - The company plans to maintain a dividend payout ratio of 50% while focusing on growth investments [29][71] Q&A Session Summary Question: Revenue growth target by 2028 - Management discussed components of achieving the 5% revenue growth target, emphasizing growth in wealth and transaction banking [34][36] Question: Cost growth and HIBOR assumptions - Management clarified that cost growth is expected to be around 1%, with a focus on investments in technology and customer service [42][46] Question: Sustainability of RoTE guidance - Management indicated that while the RoTE target is set at 17%+, they are ambitious about future growth and investments [51][79] Question: Hang Seng Bank synergies - Management explained the distinction between reported synergies and additional upside, with a focus on technology investments driving revenue growth [75][79]

Financial Performance - HSBC's revenue excluding notable items increased by $0.5 billion year-over-year, a 3% increase[4,7] - Profit Before Tax (PBT) excluding notable items increased by $0.3 billion year-over-year, also a 3% increase[7] - Customer deposits grew by $86 billion year-over-year, reaching $1,737 billion, which includes $19 billion held-for-sale balances for 3Q25 and $6 billion for 3Q24[4,7] - The Return on Tangible Equity (RoTE) increased by 0.9 percentage points year-over-year to 17.6%[7] Business Segments - Banking Net Interest Income (NII) guidance for FY25 was upgraded to $43 billion or better[12,14] - Wealth fee and other income grew by 29% year-over-year[4] - Securities Services fee and other income increased by 15% due to higher asset balances[16,17] Costs and Credit - Costs increased by $1.9 billion year-over-year, a 23% increase, including $1.4 billion of legal provisions related to historical matters[7] - The Expected Credit Losses (ECL) charge was $(1.0) billion, representing ~(40)bps of gross loans and advances[7,24,25] Capital and Strategy - The CET1 ratio was 14.5%[7] - The company is on track for ~3% target basis cost growth in FY25[5,28] - HSBC announced 11 exits Year-To-Date (YTD), including HSBC Malta and Sri Lanka retail banking during Q3[5,29]