HSBC reported a 6% rise in underlying fourth-quarter revenue to $17.7bn (which ignores currency and one-off items). Growth was driven by banking net interest income and strong wealth fees.
Underlying profit before tax rose 17% to $8.6bn ($7.9bn expected). Credit impairments were down 36% to $0.9bn.
The CET1 ratio, a key measure of financial resilience, was 14.9% at year-end (14.0–14.5% target range). This is expected to dip below target in 2026 following the acquisition of the minority stake in Hang Seng bank. As such, buybacks are on hold while capital rebuilds.
A quarterly dividend of $0.45 per share was announced, taking the total to $0.75 for the year, up 14% (excluding special dividends).
2026 guidance points to banking net interest income of at least $45bn ($43.5bn expected).
The shares rose 4.8% in early trading.
Our view
HL view to follow.
HSBC key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.