At a glance
We delivered a strong performance in 2025, driven by decisive action and swift execution.
Highlights:
- Profit before tax grew by 7% to $36.6bn, excluding notable items. Revenue grew by 5% to $71.0bn, excluding notable items
- Reported profit before tax was 7% lower at $29.9bn, mainly due to the impact of notable items (see ‘Context behind the numbers’ below)
- We approved a fourth quarterly dividend of $0.45 per share. This resulted in a total dividend of $0.75 per share in respect of 2025
- We completed two share buybacks in respect of 2025 worth a total of $6bn
- Annualised return on average tangible equity (RoTE) was 13.3%, or 17.2% excluding notable items
- Our common equity tier 1 (CET1) capital ratio was 14.9%
Group CEO
Building on our strengths
Our four businesses – Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking – performed well. Revenue grew in each and all four delivered at least mid-teens RoTE or above, excluding notable items.
Revenue by global business, FY251
1 Calculation based on revenue of our business segments excluding Corporate Centre.
Outlook
We’re targeting a RoTE of 17% or better for 2026, 2027 and 2028, excluding notable items. This reflects momentum in our earnings and the positive progress we’re making in our strategic execution.
We’re targeting year-on-year growth in revenue from 2026 to 2028, rising to 5% in 2028, excluding notable items and on a constant currency basis.
We maintain our dividend payout target of 50% in 2026, 2027 and 2028, excluding notable items and related impacts.
This year, we expect banking net interest income of at least $45bn, based on our current expectations for policy rates.
We continue to expect ECL charges (expected credit losses and other credit impairment charges) as a percentage of average gross loans to be around 40bps in 2026 (including loans held for sale balances). Over the medium term, we retain our planning range of 30-40bps.
We retain our commitment to Group-wide cost discipline. We’re targeting growth in target basis operating expenses of approximately 1%, compared with 2025.
Our target basis operating expenses measure excludes notable items and includes the impact of simplification-related saves associated with our announced reorganisation.
We intend to continue to manage our medium-term CET1 capital ratio target range of 14% to 14.5% (see ‘context behind the numbers’).
Context behind the numbers
In 2025, notable items included dilution and impairment losses of $2.1bn related to our associate Bank of Communications Co., Limited and reserve recycling losses of $1.5bn following the completion of the sale of our French retained portfolio of home and certain other loans. Notable items also included legal provisions of $1.4bn and restructuring and other related costs associated with our organisational simplification of $1.0bn.
Following an impact on capital owing to the privatisation of Hang Seng Bank, we expect to restore our CET1 capital ratio within our target range through a combination of organic capital generation and not initiating any further buybacks until CET1 capital is back within or above this range.
Downloads and Zoom meeting
Find out more in our Investors section or view details of the Zoom meeting replay for investors and analysts.