Introduction:
HSBC Holdings plc, one of the largest and most influential financial institutions globally with total assets of approximately $3.1 trillion as of March 31, 2025, continues to play a pivotal role in global finance. Operating across over 60 countries, HSBC serves as a critical anchor of liquidity and stability in an increasingly volatile economic environment.

On April 29, 2025, the Group reported its financial results for the first quarter of the year — highlighting a resilient operational performance despite a decline in headline profits due to the non-recurrence of prior-year business disposals.

Financial Performance: Resilience Amid Disposals

HSBC posted a pre-tax profit of $9.5 billion for the quarter, representing a 25% decline compared to Q1 2024. This contraction was largely due to the absence of $4.8 billion in one-off gains from the sale of its banking operations in Canada and Argentina recorded last year. Net profit fell by 30% to $7.6 billion.

Nevertheless, HSBC’s management emphasized the strength of its core operations. Georges Elhedery, Group CEO, stated:

“Our strong results this quarter demonstrate momentum in our earnings, discipline in the execution of our strategy, and confidence in our ability to deliver our targets.”

Revenues, Operational Efficiency, and Capital Strength

Total reported revenue stood at $17.6 billion, down 15% year-over-year. However, on a constant currency basis and excluding notable items, underlying revenue grew by 7%, driven primarily by robust performances in International Wealth and Premier Banking (IWPB) and in Foreign Exchange and Debt and Equity Markets.

Return on Average Tangible Equity (RoTE) came in at a solid 17.9%, while the Common Equity Tier 1 (CET1) capital ratio stood at a strong 14.7%, positioning the Group well to absorb potential market shocks.

Addressing the uncertain macroeconomic backdrop, Elhedery added:

“We continue to support our customers through this period of economic uncertainty and market unpredictability, which we enter from a position of financial strength.”

Strategic Priorities for 2025: Focus and Adaptation

HSBC outlined a pragmatic yet growth-oriented outlook:
• Maintaining a mid-teens RoTE annually through 2025–2027, excluding notable items.
• Banking Net Interest Income (NII) guidance of approximately $42 billion for 2025, assuming current market rate projections hold.
• A targeted 3% increase in operating expenses, incorporating planned cost savings of around $1.5 billion by the end of 2026 through organizational simplification initiatives.

The Group is strategically refocusing its business model by divesting non-core operations — including activities in South Africa and Germany — while investing in growth opportunities across wealth management, transaction banking, and SME services, particularly in Asia and its two home markets: Hong Kong and the United Kingdom.

Conclusion: Stability, Selective Growth, and Prudent Risk Management

Despite the challenging macroeconomic landscape, HSBC approaches 2025 from a position of strength, balancing operational discipline with selective growth strategies. Its emphasis on liquidity, capital resilience, and client-centric innovation ensures that HSBC remains well-positioned to navigate turbulence and continue delivering shareholder value over the medium and long term.