Financial Performance - Net Interest Income (NII) decreased by 7% YoY, from HK$15483 million to HK$14339 million[8] - Fee and Other Income increased significantly by 34% YoY, reaching HK$6636 million, driven by the Wealth business[8, 11] - Operating Profit decreased by 25% YoY, from HK$11396 million to HK$8549 million[8] - Profit Before Tax (PBT) decreased by 28% YoY, from HK$11307 million to HK$8097 million[8] - Earnings per share (EPS) decreased by 34% YoY, from HK$504 to HK$334[8] - Dividend per share (DPS) increased by 8% YoY, from HK$240 to HK$260[8] Balance Sheet - Customer Loans and Advances decreased by 2% compared to December 2024, from HK$819 billion to HK$803 billion[8, 13] - Customer Deposits increased by 3% compared to December 2024, from HK$1267 billion to HK$1300 billion, driven by affluent customer growth[8, 13, 14] - Non-performing Loan (NPL) ratio increased to 669%, a 57bps increase HoH[8, 11] Capital and Efficiency - Common Equity Tier 1 (CET1) ratio increased to 213%[8, 11] - Total Capital Ratio (CAR) increased to 249%[8, 11] - Cost Efficiency Ratio (CER) improved slightly to 361%, a 07 percentage point decrease YoY[8, 20]

Core Viewpoint - HSBC Holdings plc has seen an 18.3% increase in shares this year, outperforming the S&P 500 Index's 1.2% rise, but underperforming its industry's growth of 22.2% [1] Group 1: Performance Overview - HSBC's stock has outperformed peers like UBS Group AG (4.2% gain) and Mitsubishi UFJ Financial Group, Inc. (14.2% gain) [1] - The company's focus on Asia has been a significant driver of its performance, with over half of its business now centered in the region [4] Group 2: Strategic Initiatives - HSBC has re-launched its private banking business in India and received approval to open branches in 20 new cities, alongside a partnership with Bajaj Allianz General Insurance [5] - In mainland China, HSBC is expanding its wealth business through lifestyle-focused centers and acquisitions, including Citigroup's retail wealth arm [5] - The acquisition of AXA Insurance in Singapore and L&T Investment Management Limited is expected to strengthen HSBC's position in Asia [6] Group 3: Restructuring and Cost Management - HSBC is engaged in restructuring efforts aimed at enhancing operational efficiency, targeting $1.5 billion in annualized savings by the end of 2026 [9] - The company plans to incur $1.8 billion in severance and upfront charges to execute its business simplification efforts [10] - HSBC is winding down its operations in the U.K., Europe, and the U.S., while focusing on Asia and the Middle East [11] Group 4: Financial Position - As of March 31, 2025, HSBC's capital ratios remain strong, supported by steady capital generation [12] - The company returned $26.9 billion to shareholders in 2024 and expects a 50% dividend payout ratio for 2025, along with a share repurchase program of up to $3 billion [13] Group 5: Challenges - HSBC has faced rising operating expenses, with a projected increase of 3% in 2025 due to market share growth initiatives [15] - Revenue growth has been muted, with a negative compound annual growth rate of 2.7% over the three years ending in 2022, impacted by subdued loan demand and a challenging macroeconomic environment [16][17]