# HSBC Holdings plc Annual Report and Accounts 2025 ## HSBC Holdings plc Annual Report and Accounts 2025 HSBC Holdings plc Annual Report and Accounts 2025 **160** HSBC Holdings plc 8 Canada Square London E14 5HQ United Kingdom T: +44 (0)20 7991 8888 www.hsbc.com --- ## Opening up a world of opportunity HSBC is one of the largest banking and financial services organisations in the world. Guided by our purpose of opening up a world of opportunity, our ambition is to become the world’s most trusted bank globally, putting customers at the heart of everything we do. ### In this year’s report **Strategic report** 2 Highlights 4 Who we are 5 Group Chairman’s shareholder letter 7 Group CEO’s shareholder letter 9 Our strategy 12 Financial overview 16 Business segments 25 ESG overview 27 Board engagement with stakeholders and decision making 30 Risk overview 32 Long-term viability and going concern statement **Environmental, social and governance (‘ESG’) review** 34 Environmental 52 Social 58 Governance **Financial review** 66 Financial summary 76 Business segments and legal entities 92 Alternative performance measures **Risk review** 98 Our approach to risk 100 Top and emerging risks 105 Our material banking risks **Corporate governance report** 187 Biographies of Directors and senior management 200 Board committees 216 Directors’ remuneration report **Financial statements** 253 Independent auditors’ report 262 Financial statements 274 Notes on the financial statements **Additional information** 356 Shareholder information 366 Abbreviations This Strategic Report was approved by the Board on 25 February 2026 and signed on its behalf by the Group Chairman. Brendan Nelson Group Chairman ### A reminder The currency we report in is US dollars. ### Our approach to ESG reporting We embed our ESG reporting and Task Force on Climate-related Financial Disclosures (‘TCFD’) within our Annual Report and Accounts. Our TCFD disclosures are highlighted with the following symbol: **TCFD** ### Use of alternative performance measures We supplement our IFRS Accounting Standards figures with non-IFRS Accounting Standards measures used by management internally that constitute alternative performance measures under European Securities and Markets Authority guidance and non-GAAP financial measures defined in and presented in accordance with US Securities and Exchange Commission rules and regulations. These measures are highlighted with the following symbol: **ø** **Ñ** Further explanation may be found on page 66. ### Financial targets For our financial targets, medium term is defined as between three to five years, and long term as five to six years, from 1 January 2026. **Ñ** See page 3 for details on our forward guidance and outlook. None of the websites referred to in this Annual Report and Accounts 2025 for the year ended 31 December 2025 (including where a link is provided), and none of the information contained on such websites, are incorporated by reference in this report. HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Performance in 2025 Our key performance indicators measure the progress we have made against our priorities for the benefit of all our stakeholders, and also inform remuneration outcomes across the Group. ### Financial performance indicators **Ñ** Read more on our financial performance in 2025 on pages 2 and 14. **Ñ** For an explanation of performance against our key Group financial targets, see page 12. **Ñ** To better align with market practice, from our 2025 full-year results we no longer adjust the ‘average tangible equity‘ for the post-tax impact of notable items in each period. Comparatives have been re-presented. This revision improved RoTE excluding notable items by 16 basis points (‘bps’) in 2025 (2024: (34)bps). **Ñ** For a reconciliation of alternative performance measures to their reported equivalents, see page 92. **Return on average tangible equity (‘RoTE’) ø** **13.3%** (2024: 14.6%) **Profit before tax** **$29.9bn** (2024: $32.3bn) **RoTE excluding notable items ø** **17.2%** (2024: 15.6%) **Constant currency profit before tax excluding notable items ø** **$36.6bn** (2024: $34.2bn) **Operating expenses** **$36.4bn** (2024: $33.0bn) **Common equity tier 1 capital ratio** **14.9%** (2024: 14.9%) **Target basis operating expenses ø** **$33.5bn** (2024: $32.5bn) **Dividend per share in respect of 2025** **$0.75** (2024 dividend per share: $0.87, inclusive of a special dividend of $0.21 per share) ### Strategic performance indicators **Ñ** Read more on our strategy on pages 9 to 11. **Ñ** Read more on our approach to ESG on page 25. **Ñ** Read more on our definition of sustainable finance and investment on page 36. **Organisational simplification ¤** **$1.2bn** Annualised impact of cost saving actions taken during 2025 **Sustainable finance and investment ¤** **$495.6bn** Cumulative total provided and facilitated since 1 January 2020. (2024: $393.6bn) **Grow our Wealth business** **$80bn** Net new invested assets generated in 2025, of which $39bn were in Asia. (2024: $64bn generated, of which $47bn were in Asia) ### Link to remuneration **Ñ** For details of executive Directors’ pay and performance in 2025, see the Directors’ Remuneration Report on page 216. Our remuneration policy supports the achievement of our strategic objectives by aligning reward with our long-term sustainable performance. This includes review of our performance against financial and non-financial metrics to determine overall variable pay for our colleagues and executive Directors. Key financial and strategic performance indicators included in the 2025 annual incentive and 2023–2025 long-term incentive scorecards of our executive Directors are highlighted by the following symbols: **¤** Annual incentive **¤** Long-term incentive Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 3 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn. In 2024, notable items included net losses relating to our disposals in Canada and Argentina of $1.4bn. * Constant currency profit before tax excluding notable items increased by $2.4bn to $36.6bn, from a strong performance in Wealth in our International Wealth and Premier Banking (‘IWPB’) and Hong Kong businesses, and from Wholesale Transaction Banking in our Corporate and Institutional Banking (‘CIB’) business. This was partly offset by a rise in expected credit losses and other credit impairment charges (‘ECL’) and an increase in operating expenses due to planned investment and inflation. * RoTE in 2025 was 13.3%, compared with 14.6% in 2024. Excluding notable items, RoTE in 2025 was 17.2%, a rise of 1.6 percentage points compared with 2024. * Revenue of $68.3bn increased by $2.4bn or 4% compared with 2024. The increase was primarily due to fee and other income growth in Wealth from Investment Distribution and Insurance, and in Wholesale Transaction Banking, particularly in Foreign Exchange in CIB. This was partly offset by the year-on-year impact of notable items, mainly relating to business disposals and a dilution loss related to BoCom. Constant currency revenue excluding notable items rose by $3.4bn to $71.0bn. * Net interest income (‘NII’) of $34.8bn was $2.1bn higher than 2024 reflecting the benefit of the reinvestment of our structural hedge at higher yields, deposit balance growth and higher NII in Markets Treasury. In addition, the increase included the non recurrence of a $0.2bn loss in 2024 on the early redemption of legacy securities. This was partly offset by the adverse year-on-year impact of $1.6bn from business disposals in Argentina and Canada, and margin compression on our deposits. The growth in NII of $2.1bn also reflected a benefit from lower funding costs associated with the trading book of $1.7bn. Banking net interest income (‘banking NII’), which excludes these funding costs, increased by $0.3bn to $44.1bn. * Net interest margin (‘NIM’) of 1.59% was 3bps higher, reflecting the reinvestment of our structural hedge at higher yields. * ECL were $3.9bn, an increase of $0.4bn compared with 2024, including charges in both periods related to the commercial real estate (‘CRE’) sectors in Hong Kong and mainland China. In 2025, the charge in this sector in Hong Kong of $0.7bn (2024: $0.1bn) reflected higher allowances for new defaulted exposures, the impact of an over supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 2025 charge in the mainland China CRE sector was $0.2bn (2024: $0.4bn). ECL were 39 bps of average gross loans, including loans and advances classified as held for sale. * Operating expenses increased by $3.4bn or 10% to $36.4bn. The increase primarily reflected notable items in 2025 of $3.0bn, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $1.0bn, and $0.5bn related to disposals, wind-downs, acquisitions and related costs. * Cost growth also reflected planned spend and investment in technology, higher performance-related pay and the impacts of inflation, partly offset by reductions related to our business disposals and the benefits of our organisational simplification. * Target basis operating expenses rose by 3%, in line with our cost growth target. This increase primarily reflected higher planned spend and investment in technology, higher performance-related pay and the impact of inflation, partly offset by the benefits of our organisational simplification. * Customer lending balances rose by $57.7bn including favourable foreign currency translation differences. On a constant currency basis, lending balances rose by $17.6bn, mainly in our UK business reflecting growth in mortgage and commercial customer lending. * Customer accounts rose by $131.9bn, including favourable foreign currency translation differences. On a constant currency basis, customer accounts increased by $67.6bn, with growth in all our businesses, particularly our Hong Kong business segment. * Common equity tier 1 (‘CET1’) capital ratio remained at 14.9%. This reflected an increase in risk-weighted assets (‘RWAs‘), which was offset by an increase in CET1 capital through capital generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements. * The Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025. Strategic report ESG review Financial review Risk review Corporate Governance Report Financial statements Additional information HSBC Holdings plc Annual Report and Accounts 2025 2 --- ## Highlights We are becoming a simple, more agile, focused bank, built on our core strengths. ### Financial performance (vs 2024) * Reported profit before tax decreased by $2.4bn to $29.9bn, mainly due to a $4.9bn year-on-year net adverse impact from notable items. Profit after tax decreased by $1.9bn to $23.1bn. * In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited (‘BoCom‘), reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans, legal provisions of $1.4bn and restructuring and other related costs associated with our