HSBC profit falls in first half
HSBC Holdings saw its profit fall sharply in the first half of 2025, according to interim results released yesterday. The bank reported a pre-tax profit of $15.8 billion, down $5.7 billion or nearly 27 per cent compared with the same period last year. Net profit dropped 30 per cent to $12.4 billion.
The decline was mainly owing to $2.1 billion in losses tied to the bank’s investment in China’s Bank of Communications, along with the absence of one-time gains last year from selling operations in Canada and Argentina.
Still, the bank highlighted strong performance in its wealth management, Hong Kong and currency trading businesses. Adjusted profit excluding one-off items actually rose to $18.9 billion, which the bank said showed its core business remains healthy.
HSBC also announced a second interim dividend of $0.10 per share and a new $3 billion share buyback, promising continued returns to shareholders despite the profit drop.
Georges Elhedery, chief executive, said the bank is staying focused on simplifying operations, investing in technology and preparing for global economic uncertainty, including tariff changes and slowing lending demand.
“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,” he said. “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.”
Credit-loss charges nearly doubled to $1.9 billion, largely because of concerns about the Hong Kong commercial real estate sector. Meanwhile, operating costs rose 4 per cent to $17 billion, with technology spending and restructuring driving the increase.
The bank's capital strength remains solid, with a Common Equity Tier One ratio of 14.6 per cent, even after the drop in earnings. Mr Elhedery said HSBC remains committed to long-term targets and growth in Asia, Britain and its wealth business.
• For the complete financial results, see Related Media
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