HSBC FY beats estimates despite impairments, lifts return targets

(Sharecast News) - HSBC reported a better-than-expected annual results despite a 7.4% fall in pre-tax profits due to the adverse impact from legal provisions, organisational simplification and the sale of its French-retained portfolio of loans. Pre-tax profits at the lender came in at $29.9bn in 2025, beating estimates of $28.86bn. Revenue rose 4% to $68.27 versus company-compiled consensus forecasts of $67.36bn.

The bank said it was now targeting a return on average tangible equity of greater than 17%, excluding notable items, in up until 2028 compared with 2025's 13.3%.

Results were hit by $4.9bn in charges, including a $2.1bn write-off related to its stake in China's Bank of Communications which had been impacted by dilution and the long-running downturn in the country's property sector. Legal provisions worth $1.4 billion and $1bn of restructuring and related costs also weighed.

Reporting by Frank Prenesti for Sharecast.com