HSBC has unveiled its 2025 annual results, highlighting a $29.9bn pre-tax profit and a record-breaking $3.9bn bonus pool for its workforce. The bonus pot represents a 10% increase from the previous year and is the highest the bank has seen in over a decade. The results were $1bn ahead of analyst forecasts, leading to a surge in the bank’s London-listed shares.
CEO Georges Elhedery, an HSBC veteran, noted that the bank’s $1.5bn cost-saving program is running six months ahead of schedule. This efficiency has allowed the bank to reinvest in its core areas and reward its high-performing staff. Elhedery’s own pay package also saw an increase, reaching £14.4m as he nears the end of his extensive bank-wide reorganization.
The bank’s stock has performed exceptionally well, rising 50% throughout 2025 and continuing its upward trend into the new year. This growth is a direct result of the bank’s focus on its “east-west” operational lines and the divestiture of less profitable units. The bank’s market cap has now stabilized at approximately $300bn, reflecting strong investor confidence.
However, the fiscal year was not without its difficulties, as the bank took a $2.1bn hit on its investments in China. The ongoing property market downturn in the region severely impacted the profitability of its mainland operations. To counter these pressures, the bank is looking toward synergies from its Hang Seng Bank acquisition to drive future revenue.
HSBC’s outlook for the next three years is aggressive, with a new profitability target of 17% return on tangible equity. Analysts at Jefferies have pointed out that while the bank is in a strong position, the competitive pressure to invest in AI may make its 1% cost-growth forecast difficult to achieve. With Brendan Nelson now serving as chair, the bank is moving forward with a clear and permanent leadership team.