British lending major HSBC Holdings Plc reported Wednesday significantly higher profit in its fourth quarter, with growth in revenues. Further, the company issued outlook, expecting higher banking net interest income in fiscal 2026, and revenue growth further ahead.
In Hong Kong, the shares were gaining around 3 percent, trading at HK$139.300. In the overnight trading in U.S., the shares were at $89.55, up 2 percent.
Georges Elhedery, Group CEO, said, "2025 was a year of decisive action and swift execution, which is reflected in our strong performance. Each of our four businesses performed well and we have strong momentum across the bank. That is why we are raising our ambition and targeting a 17 percent RoTE or better, excluding notable items, in each year from 2026 to 2028. We are also targeting year-on-year revenue growth over the same period on the same basis, rising to 5 percent in 2028."
Looking ahead for fiscal 2026, the company projects Banking net interest income, which excludes certain funding costs, of at least $45 billion, compared to $44.1 billion in fiscal 2025.
The bank targets year-on-year growth in revenue from 2026 to 2028, rising to 5 percent growth in 2028 compared with 2027 excluding notable items and on a constant currency basis.
Further, the Board has approved a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025.
The dividend will be payable on April 30 to holders of record on March 13.
In the fourth quarter, profit before tax was $6.8 billion, a growth of $4.5 billion from the previous year.
The increase included a $3.3 billion year-on-year net favourable impact from notable items, primarily due to the non-recurrence of the recycling of foreign currency losses and other reserves of $5.2 billion recognised following the completion of sale of its business in Argentina last year.
These were partly offset by reserve recycling losses of $1.5 billion following the sale of French retained portfolio of home and certain other loans in 2025.
Reported profit after tax grew $4.6 billion from last year to $5.2 billion.
The quarterly revenue of $16.4 billion climbed 42 percent year-over-year, including a $3.6 billion year-on-year impact from notable items from the disposals.
The increase in revenue also reflected growth in banking net interest income, as well as higher fee and other income from Wealth.
In fiscal 2025, HSBC's profit before tax declined to $29.91 billion from last year's $32.31 billion.
HSBC's net earnings attributable to ordinary shareholders of the parent company came in at $21.10 billion or $1.20 per share, lower than $22.92 billion or $1.24 per share a year ago.
Interest income was $97.87 billion, lower than $108.63 billion a year ago.
Revenues, i.e., net operating income before change in expected credit losses and other credit impairment charges, were $68.27 billion, higher than $65.85 billion a year ago.
The company's net interest income for the year rose 6.3 percent to $34.79 billion from $32.73 billion last year.
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