HSBC profit beats as wealth division boosted by client income
The bank is preparing to move towards a more Wall Street-style compensation model
Published Wed, Feb 25, 2026 · 12:53 PM
[LONDON] HSBC Holdings reported better-than-estimated earnings for 2025 as Europe’s largest bank closed out a year in which its market value broke through £200 billion (S$342 billion) for the first time in its history.
The London-headquartered lender with a focus on Asia on Wednesday (Feb 25) posted pretax profit of US$29.9 billion in the 12-month period, exceeding the company-compiled analyst estimate of US$28.9 billion. Strong performance at the wealth division boosted the earnings.
“2025 was a year of decisive action and swift execution, which is reflected in our strong performance,” chief executive officer Georges Elhedery said on Wednesday. “Each of our four businesses performed well and we have strong momentum across the bank.”
The lender also said that it’s raising its ambition and “targeting a 17 per cent RoTE or better, excluding notable items”, in 2026 to 2028.
Since taking over as CEO in 2024, Elhedery has led a radical restructuring of the bank, cutting thousands of jobs, selling some businesses, while merging and closing others. He doubled down on his predecessor’s Asia-pivot strategy by taking private its troubled Hong Kong subsidiary Hang Seng Bank, a major bet on growth in the Asian financial hub.
The revamp has earned plaudits from investors, with the bank’s shares having surged almost 90 per cent since Elhedery took the helm. The stock rose to all-time highs earlier this month, while its market value climbed above £200 billion in December, a key milestone for the lender founded in 1865. Michael Roberts, HSBC’s head of corporate and investment banking, said last month that it was on course for a capitalisation in excess of £300 billion.
Elhedery has also been attempting to drive a cultural change across the bank’s more than 200,000-strong global workforce, as it grapples with competition from local and international rivals. The bank is preparing to move towards a more Wall Street-style compensation model, in which top performers share a larger part of the bonus pot, while underperformers are pushed to look for opportunities outside of the company.
HSBC has so far been relatively unaffected by the tariff policies of US President Donald Trump, despite operating the world’s largest trade finance operation that facilitated US$850 billion of commerce in 2023. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
