HSBC has reported a significant decline in its pre-tax profits for the year 2025, with figures falling by £1.8 billion compared to the previous year. The banking giant's annual results, released on Wednesday 25 February 2026, revealed that pre-tax profits dropped to 29.9 billion dollars, equivalent to £22.1 billion.
Key Financial Figures and Impacts
The £1.8 billion decrease represents a substantial reduction of 2.4 billion dollars in pre-tax profits over the 12-month period. According to the bank's official statement, this downturn was primarily attributed to adverse impacts totaling 4.9 billion dollars, or approximately £3.6 billion. These impacts stemmed from several critical areas, including legal provisions, organisational simplification initiatives, and the sale of HSBC's French-retained portfolio of loans.
Post-Tax Profits and Quarterly Performance
Profits after tax also experienced a notable decline, falling by 1.9 billion dollars to 23.1 billion dollars, which translates to £17.1 billion for the full year. However, the final quarter of 2025 provided a contrasting picture, with pre-tax profits rising by 4.5 billion dollars to 6.8 billion dollars, or £5 billion, compared to the same period in 2024.
Leadership Perspective and Strategic Outlook
Group Chief Executive George Elhedery commented on the results, describing the business as having produced a "strong performance" and maintained "strong momentum across the bank." He emphasised the bank's ongoing transformation into a more streamlined and agile institution, capable of meeting the evolving needs of its customers in the modern financial landscape.
Elhedery outlined ambitious growth targets, stating that the goal for year-on-year revenue growth is set to increase to 5% by 2028. He elaborated on the bank's strategic direction, noting, "We are becoming a simple, more agile, focused bank, one that moves with the speed our customers need to navigate the modern world. We are delivering growth, investing for growth and we are executing our strategy with discipline and precision. That gives us confidence in our ability to continue delivering for our shareholders."
The results highlight the complex challenges facing global banking institutions, with HSBC navigating legal and structural adjustments while aiming for future growth. The bank's focus on simplification and strategic execution appears central to its plans for recovery and sustained profitability in the coming years.
