Financial Data and Key Metrics Changes - In the first half of 2025, revenue grew by 6% to $35.4 billion, and profit before tax increased by 5% to $18.9 billion, with an annualized return on tangible equity of 18.2%, up 1.2% year on year [2][4][22] - The second quarter revenue was $17.7 billion, reflecting a 5% year-on-year growth driven by fee and other income [21][25] - The annualized return on tangible equity for the second quarter was 17.7% [21] Business Line Data and Key Metrics Changes - The Hong Kong home market business attracted 100,000 new customers monthly, with deposits growing by 9% year on year [3][24] - The UK loan book grew by $6 billion over the quarter, with a 4% year-on-year increase [3][25] - Commercial Banking saw a recovery in lending growth, with loans increasing by $3.5 billion [4] - Wealth business fee and other income grew by 22% year on year, with net new invested assets of $22 billion in the quarter [25][31] Market Data and Key Metrics Changes - Deposits increased by $83 billion year on year, reflecting a 5% growth [5][35] - The Hong Kong dollar's sensitivity to interest rates was highlighted, with expectations for HIBOR to rise gradually above 2% in the third quarter [27][28] Company Strategy and Development Direction - The company is focused on organizational simplification, aiming for $1.5 billion in cost savings by 2026, with $400 million expected in 2025 [8][34] - The strategy includes exiting non-strategic activities to reinvest in priority growth areas, particularly in Asia [9][10] - Investments are being made in wealth centers and enhancing capabilities in key markets like Hong Kong and the UK [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position amid economic uncertainty, emphasizing strong customer relationships and financial strength [4][17] - The outlook for Hong Kong's commercial real estate remains cautious, with expectations for stabilization in residential development but ongoing challenges in office space [70][71] Other Important Information - A second interim dividend of $0.10 per share was announced, alongside a share buyback of up to $3 billion [4][23] - The company is modernizing operations through AI and automation to improve productivity [16][85] Q&A Session Questions and Answers Question: Banking NII guidance and HIBOR assumptions - The banking NII guidance of $42 billion includes market expectations of HIBOR above 2% in the third quarter, with a $100 million monthly impact from HIBOR at 1% [41][44] Question: Impact of tariffs on revenues - The company noted a 5% impact on revenues from tariffs, but trade fees and other income grew by 4%, indicating resilience in trade business [49][53] Question: Impairments and Hong Kong CRE outlook - Management indicated that while there are short-term pressures in Hong Kong's commercial real estate, they remain optimistic about the medium to long-term outlook [70][72] Question: Noninterest income sustainability - The company highlighted strong performance in noninterest income driven by wealth management and FX, but acknowledged the volatility based on market conditions [95][100]

HSBC (HSBC) Q2 2025 Earnings Call July 30, 2025 02:45 AM ET Speaker0Welcome, ladies and gentlemen, to the analyst and investor webinar on the 2025 interim results for HSBC Holdings plc.For your information, this webinar is being recorded. First twenty twenty twenty The TheSpeaker1items: our first half performance, the external environment and the progress we're making against the targets we set out. Turning to our performance. The momentum we saw in the first quarter continued into the second quarter. Our h ...