HSBC, the London-headquartered banking group, has announced a 26% drop in pre-tax profit for the first half of 2025, totalling $15.8 billion, down from $21.5 billion during the same period last year. Despite this fall, the bank stated it remains “well positioned” to navigate ongoing global uncertainties, particularly those related to US-imposed tariffs.
Chief Executive Georges Elhedery noted that all four of HSBC’s business divisions continued to demonstrate earnings momentum and recorded revenue growth, underlining strategic resilience amid a tougher economic backdrop.
Financial Overview (H1 2025)
| Metric | Figure (USD) | Change YoY |
| Pre-Tax Profit | $15.8 billion | ↓ 26% |
| Previous Year Pre-Tax Profit | $21.5 billion | — |
| Revenue | $34.1 billion | ↓ 9% |
| Recognised Losses (BoCom-related) | $2.1 billion (impairment & dilution) | — |
| Shareholder Returns (H1 Total) | $9.5 billion | — |
| Interim Dividend (Second) | $0.10 per share | — |
| Share Buyback | Up to $3 billion | — |
Factors Behind Profit Decline
The primary driver behind the sharp profit decline was a $5.7 billion reduction attributed to dilution and impairment losses linked to HSBC’s investment in Bank of Communications (BoCom) in China. These one-off charges amounted to $2.1 billion, significantly impacting headline earnings.
Despite this, Elhedery emphasised the bank’s continued progress in its cost-reduction and structural transformation programme, which began in October 2024.
“We are making positive progress in reshaping our organisation for long-term efficiency,”
— Georges Elhedery, Chief Executive, HSBC
Regional Strategy and Tariff Preparedness
HSBC continues to focus its strategic realignment on Asia, which remains the bank’s largest revenue-generating region. The bank has reiterated its ambition to build out its wealth management offerings and capitalise on the region’s fast-growing markets.
Elhedery also addressed concerns over the US tariff regime, suggesting that while the direct revenue impact may be modest, broader macroeconomic deterioration could affect long-term targets.
“We are well positioned to manage the changes and uncertainties prevalent within the global environment in which we operate, including in relation to tariffs.”
— Georges Elhedery
He warned that return on tangible equity (ROTE), excluding notable items, may fall short of the mid-teens target in the coming years, should macroeconomic conditions worsen.
Shareholder Returns Remain Strong
Despite the earnings setback, HSBC remains committed to rewarding shareholders:
- A second interim dividend of $0.10 per share has been declared.
- A new share buyback programme of up to $3 billion has been launched.
- The total shareholder returns via dividends and buybacks for H1 2025 now stand at $9.5 billion.
While HSBC’s first-half performance highlights the ongoing pressures from global financial volatility and geopolitical tensions, the bank’s leadership maintains a cautiously optimistic outlook. Strategic focus on Asia, shareholder confidence through sustained capital returns, and a clear cost-control trajectory offer signs of resilience amid a complex global banking environment.
