HSBC Holdings plc published an edited transcript of its Annual Results 2025 Presentation to Investors and Analysts, led by Group CEO Georges Elhedery and Group CFO Pam Kaur, with participation from investors and analysts in the room in Hong Kong and via Zoom. Management highlighted strong 2025 performance excluding notable items, with revenue up 5% and profit before tax rising 7% to a record $36.6 billion, alongside a 17.2% return on tangible equity and target-basis cost growth of 3%. “Our 2025 full-year performance was strong. It was a year in which we performed, transformed and invested for growth,” the Group CEO said. The bank also announced a full-year ordinary dividend of 75 cents per share, up 14% year on year. A key focus was strategic execution and simplification, including a reduction of net Managing Director positions by around 15% and progress toward $1.5 billion of annualised simplification savings. “We are taking $1.5 billion of annualised simplification saves straight to the bottom line, with immaterial revenue impact,” the Group CEO said. The CFO added that HSBC expects 1% target-basis cost growth in 2026, supported by earlier-than-planned savings. HSBC also discussed its completed $13.7 billion privatisation of Hang Seng Bank, outlining expected benefits through 2028, including $0.5 billion of reported synergies and a further $0.4 billion of potential upside, alongside a $0.6 billion restructuring charge. The CFO said the $0.4 billion is “depending to some extent on markets and customer behaviour,” while confirming, “The restructuring cost of $600 million covers the benefits across both buckets.” Looking ahead, management set new targets for 2026 to 2028, aiming for revenue growth every year, “rising to 5% in 2028,” and return on tangible equity of “17% or better” each year, excluding notable items, while maintaining a 50% dividend payout ratio. On 2026 outlook, the CFO guided to banking net interest income of at least $45 billion and an expected credit loss charge of around 40 basis points, noting rate assumptions were based on “the end-January forward rate curve.” The full transcript can be accessed through the link below.

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