Hsbc Holdings Plc · LSE:HSBA
Hsbc — Q2 2025 Earnings Presentation
38 slides from Hsbc's earnings presentation, Jul 30, 2025
Slide 1: HSBC Holdings plc 2Q25 results
HSBC Holdings plc 2Q25 results Presentation to investors and analysts
Slide 2: Strong performance in 1H25
Business update 2Q25 results Appendix Strong performance in 1H25 $9.5bn of distributions to shareholders1 1H25 revenue: $34.1bn revenue / $35.4bn excl. notable items, +6% YoY* 1H25 PBT: $15.8bn / $18.9bn excl. notable items, +5% YoY Earnings 2Q25 revenue: $16.5bn / $17.7bn excl. notable items,
Slide 3: Navigating this period of economic uncertainty from a position of strength
Business update 2Q25 results Appendix Navigating this period of economic uncertainty from a position of strength Putting the changing needs of our customers at the heart of everything we do Hallmark financial strength Resilient, recurring earnings Unique deposit franchise; deep customer relationship
Slide 4: Simple and agile — focused on delivering organisational simplification with discipline and at pace
Business update 2Q25 results Appendix Simple and agile — focused on delivering organisational simplification with discipline and at pace We are on track to deliver ~$1.5bn cost saves by YE26* February 2025 announcement: c.8% of payroll cost saves, to be achieved by YE26*. Immaterial impact on revenu
Slide 5: Simple and agile — exit of non-strategic activities
Business update 2Q25 results Appendix Simple and agile — exit of non-strategic activities We are progressing at pace to exit non-strategic and low return activities February 2025 announcement: Exits announced in 2025 Target completion Over the medium term, we aim to exit non-strategic activities whi
Slide 6: Focused sustainable growth — investment in priority growth areas (1/2)
Business update 2Q25 results Appendix Focused sustainable growth — investment in priority growth areas (1/2) As announced in February 2025 Growth opportunities Investments underway Grow customer base in HK through the acquisition of new- Opening 3 new Wealth Centres to-bank international custome
Slide 7: Focused sustainable growth — investment in priority growth areas (2/2)
Business update 2Q25 results Appendix Focused sustainable growth — investment in priority growth areas (2/2) As announced in February 2025 Growth opportunities Investments underway Drive customer acquisition in Singapore and other growth Premier 3.0 to be launched in the UAE, India, Malaysia and
Slide 8: Your HSBC
Business update 2Q25 results Appendix Your HSBC A simple, more agile, focused organisation built on our core strengths Disciplined in our execution 1 Actioned $0.7bn of the ~$1.5bn simplification savings from our re-organisation, to be taken to the bottom line Announced 7 exits since 1Q25 result
Slide 9: 2Q25 results
2Q25 results Pam Kaur Group CFO
Slide 10: 2Q25 summary: $9.2bn PBT excl. notable items
Business update 2Q25 results Appendix 2Q25 summary: $9.2bn PBT excl. notable items Income statement Income statement, $bn 2Q24 2Q25 Δ, $ Δ, % Revenue 16.7 16.5 (0.2) (1)% $17.7bn revenue excl. notables +5% YoY, driven by fee and other ECL (0.3) (1.1) (0.7) >(100)% income Costs (8.2) (8.9) (0.7) (8
Slide 11: Business segment performance
Business update 2Q25 results Appendix Business segment performance Revenue growth across all businesses Corporate 2Q25 Hong Kong UK CIB IWPB Centre Revenue excl. notable items, $bn 3.8 3.2 6.9 3.5 0.1 PBT excl. notable items, $bn 2.1 1.8 3.2 1.0 1.1 PBT incl. notable items, $bn 2.1 1.7 2.8 0.9 (1.3)
Slide 12: Revenue
Business update 2Q25 results Appendix Revenue +5% YoY growth driven by fee and other income* $bn 2Q24 2Q25 Δ +$0.5bn ‘Other’ includes: +$0.1bn IB, Debt and Equity markets Banking NII 11.0 10.7 (0.2) +$0.1bn Markets Treasury income Fee and other income 5.9 6.9 1.0 +$0.2bn non-recurrence of Ar
Slide 13: Banking NII
Business update 2Q25 results Appendix Banking NII Continue to expect ~$42bn for FY25 Banking NII, $bn 11.1 11.0 10.6 10.9 0.1 0.0 10.7 $(0.2)bn QoQ, largely reflecting lower interest rates, partly 0.3 0.2 offset by the repricing of structural hedge assets Structural hedge notional $578bn, +$18bn
Slide 14: Wholesale Transaction Banking
Business update 2Q25 results Appendix Wholesale Transaction Banking Growth across all products Fee and other income, $bn +5% +7% FX, capturing elevated client activity due to 2.9 vs. 2Q24 market volatility and geopolitical events 2.8 2.7 2.7 GTS 2.6 +4% (Trade) +4% GTS, driven by guarantees, sup
Slide 15: Wealth
Business update 2Q25 results Appendix Wealth +22% YoY, with broad-based growth across products and markets Fee and other income, $bn Strong performance as we captured high levels of client activity during the quarter +22% 2.3 2.3 vs. 2Q24 Executing at pace to deliver our strategic ambitions 2.1
Slide 16: Credit performance
Business update 2Q25 results Appendix Credit performance Revising FY25 guidance to ~(40)bps* ECL charge trend, $bn 1H25: $(1.9)bn ECL charge / (40)bps $(1.1)bn 2Q25 ECL charge includes: (56)bps (43)bps (40)bps (37)bps (13)bps $(0.4)bn Hong Kong CRE, reflecting: $(0.1)bn model updates; stage 3 de
Slide 17: Costs
Business update 2Q25 results Appendix Costs On track for FY25 cost guidance; now expect ~$0.4bn of simplification savings in FY25 P&L Target basis costs, $bn On track for ~3% target basis cost growth in FY25 To date, we have taken actions to realise $0.7bn annualised simplification savings; expe
Slide 18: Customer loans and deposits
Business update 2Q25 results Appendix Customer loans and deposits +$83bn deposits vs. 2Q24 / +5% incl. held-for-sale balances Loans, $bn Deposits, $bn +1% +0%, 0% 982 +1% incl. held-for-sale balances (1) 2 0 976 6 16 (14) (1) 1,717 1,719 (1) Incl. $(12)bn German custody deposits re-classified to HFS
Slide 19: Capital
Business update 2Q25 results Appendix Capital Strong capital generation CET1 ratio, %1 +0.9 No material impact from BoCom impairment or dilution loss due to a compensating release of threshold (0.4) deductions 14.7 +0.0 +0.1 +0.0 14.6 RWA drivers: corporate lending in UK (0.4) and CIB; methodolo
Slide 20: Targets and guidance
Business update 2Q25 results Appendix Targets and guidance Target Mid-teens RoTE in each of 2025 to 2027, excluding notable items Banking NII Around $42bn (market dependent) ECL charge ~(40)bps1 Revised guidance FY25 guidance Costs Growth of ~3%, on a target basis2 Dividends 50% of EPS excluding mat
Slide 21: Appendix
Appendix
Slide 22: Quarterly financial performance summary
Business update 2Q25 results Appendix Quarterly financial performance summary $bn 2Q24 3Q23 4Q24 1Q25 2Q25 vs. 2Q24 Income statement metrics: <blank> <blank> <blank> <blank> <blank> <blank> Revenue 16.7 17.1 11.8 18.1 16.5 (0.2) (1)% ECL (0.3) (1.0) (1.4) (0.9) (1.1) (0.7) >(100)% Costs (8.2) (8.2)
Slide 23: Notable items
Business update 2Q25 results Appendix Notable items $bn 2Q24 2Q25 1H25 Restructuring and other related costs 0.0 (0.5) (0.6) BoCom — (2.1) (2.1) Of which: Dilution loss of interest in associate — (1.1) (1.1) Of which: impairment loss of interest in associate — (1.0) (1.0) Disposals, wind-downs, acqu
Slide 24: Banking NII — key drivers
Business update 2Q25 results Appendix Banking NII — key drivers Balance sheet Interest rates Average customer loans, $bn Average customer deposits, $bn1 Key rates — quarterly averages, bps 944 940 974 1,577 1,648 1,700 Source: Bloomberg, as at 25 July 20252 433 460 433 435 433 425 405 384 389 324 34
Slide 25: Banking NII — HKD supplementary information
Business update 2Q25 results Appendix Banking NII — HKD supplementary information HKD Banking NII sensitivity to a (100)bps down-shock*, $m Impact of sustained lower HIBOR (634) In 2Q25, HIBOR was significantly lower than the market-implied forward rates (403) 1m HIBOR at ~1% adversely impacts B
Slide 26: Hong Kong commercial real estate
Business update 2Q25 results Appendix Hong Kong commercial real estate Excluding exposure to mainland China borrowers Loans and advances to customers by credit quality, $bn FY24 1H25 $(0.5)bn 1H25 ECL charge included $(0.1)bn due to model updates. Also reflects Strong 4.5 4.0 an increase in allowa
Slide 27: Wealth metrics
Business update 2Q25 results Appendix Wealth metrics Invested assets, $bn Invested assets evolution, $bn Insurance manufacturing CSM balance, $bn +12% 1,424 +10% 1,424 13.5 1,331 29 12.2 12.8 1,271 Of which France* 1.0 Rest of 42 712 655 Group 665 22 11 11.3 1,331 11 676 712 Asia 606 1Q25 NNIA Marke
Slide 28: Costs — supplementary information
Business update 2Q25 results Appendix Costs — supplementary information Target basis costs reconciliation $m FY24* 2Q24 2Q25 Costs (33,095) (8,247) (8,920) Less: Notable items 224 32 652 Less: Impact of retranslating prior period results in (44) (13) — hyperinflationary economies at constant currenc
Slide 29: BoCom
Business update 2Q25 results Appendix BoCom Dilution loss The Group’s interest in BoCom reduced from 19.03% to 16.00% following the completion of a capital issuance by BoCom on 17 June 2025. The dilution of the Group’s interest resulted in a pre-tax loss of $(1.1)bn recognised in other operating i
Slide 30: PBT — supplementary information
Business update 2Q25 results Appendix PBT — supplementary information 2Q25 reported PBT to PBT excluding notable items Corporate $m HK UK CIB IWPB Total Centre Reported PBT 2,131 1,730 2,842 904 (1,281) 6,326 Less: notable items (2) (43) (324) (100) (2,367) (2,836) Constant currency PBT, excl. notab
Slide 31: EPS excluding material notable items and related impacts
Business update 2Q25 results Appendix EPS excluding material notable items and related impacts Reported FX, $m 2Q24 3Q24 4Q24 1Q25 2Q25 Profit attributable to ordinary shareholders (PAOS) 6,403 6,134 197 6,932 4,578 Dilution and impairment losses of interest in associate (BoCom) — — — — 1,988 Impact
Slide 32: Argentina (sale completed 6 December 2024)
Business update 2Q25 results Appendix Argentina (sale completed 6 December 2024) Reported FX, $m 1Q24 2Q24 3Q24 4Q24 FY24 NII 488 434 264 142 1,328 Non-NII (290) (125) (52) (18) (486) Revenue 197 309 211 125 842 ECL (61) 26 (5) (9) (48) Costs (160) (163) (169) (112) (604) PBT (23) 173 37 4 190 Const
Slide 33: 2Q25 vs. 1Q25 equity drivers
Business update 2Q25 results Appendix 2Q25 vs. 1Q25 equity drivers Basic number of ordinary Shareholders’ Tangible equity, TNAV per share, shares outstanding after Reported FX equity, $bn $bn $ deducting own shares held, millions At 31 March 2025 190.8 160.4 9.08 17,668 Profit attributable to: 4.7 5
Slide 34: Total shareholders’ equity to CET1 capital
Business update 2Q25 results Appendix Total shareholders’ equity to CET1 capital 2Q25 total equity to CET1 capital (reported FX), $m Total equity to CET1 capital walk (reported FX), $m 4Q24 1Q25 2Q25 Total equity 199,869 Total equity (per balance sheet) 192,273 198,117 199,869 Non-controlling intere
Slide 35: Glossary
Business update 2Q25 results Appendix Glossary AI Artificial intelligence GPS Global Payments Solutions Banking net interest income is an alternative performance measure, and is defined as Group HSBC Holdings plc and its subsidiary undertakings Group net interest income after deducting: (1) the inte
Slide 36: Footnotes
Business update 2Q25 results Appendix Footnotes Business update Slide 1: Strong performance in 1H25 1. $9.5bn includes: $3.5bn ordinary dividends, including $1.8bn for the first interim dividend of 2025, and an estimated amount of $1.7bn for the second interim dividend of 2025, payable on 26 Septemb
Slide 37: Disclaimer
Business update 2Q25 results Appendix Disclaimer Important notice The information, statements and opinions set out in this presentation and accompanying discussion (this “Presentation”) are for informational and reference purposes only and do not constitute a public offer for the purposes of any app
Slide 38: Slide 38