On 30 July 2025, the HSBC Holdings plc Directors approved a second interim dividend for 2025 of $0.10 per ordinary share in respect of the financial year ending 31 December 2025. This distribution amounts to approximately $1.74bn and will be payable on 26 September 2025. No liability is recognised in the financial statements in respect of these dividends.
Other financial highlights include:
- Profit before tax decreased by $5.7bn to $15.8bn compared with 1H24, primarily due to the recognition of dilution and impairment losses of $2.1bn related to their associate Bank of Communications Co., Limited ('BoCom'). In addition, there was an adverse impact from the non-recurrence of $3.6bn in net gains in 1H24 relating to the disposals of their banking business in Canada and their business in Argentina. Profit after tax of $12.4bn was $5.2bn or 30% lower compared with 1H24.
- Constant currency profit before tax excluding notable items increased by $0.9bn to $18.9bn compared with 1H24, from a strong performance in Wealth in their International Wealth and Premier Banking ('IWPB') and Hong Kong business segments, supported by higher customer activity, and in Foreign Exchange and Debt and Equity Markets driven by volatile market conditions. This was partly offset by higher expected credit losses and other credit impairment charges ('ECL') and a targeted increase in operating expenses, which included higher spend and investment in technology.
- Annualised return on average tangible equity ('RoTE') in 1H25 was 14.7%, compared with 21.4% in 1H24. Excluding notable items, annualised RoTE in 1H25 was 18.2%,a rise of 1.2 percentage points compared with 1H24.
- Revenue decreased by $3.2bn or 9% to $34.1bn compared with 1H24. The reduction reflected the year-on-year impact of notable items, mainly from disposals in Canada and Argentina in 1H24. Excluding notable items, revenue increased primarily due to fee and other income growth in Wealth and in Foreign Exchange and in Debt and Equity Markets. Constant currency revenue excluding notable items rose by $1.9bn to $35.4bn compared with 1H24.
- Net interest income ('NII') decreased by $0.1bn compared with 1H24, including an adverse impact of $0.4bn from foreign currency translation differences. On a constant currency basis, NII increased as the benefit of our structural hedge and lower costs of funding offset reductions due to the business disposals in Argentina and Canada and the impact of lower market interest rates on asset re-pricing. The reduction in interest rates reduced the funding costs of the trading book, which led to a fall in banking net interest income ('banking NII') of $0.9bn or 4% compared with 1H24.
- Net interest margin ('NIM') of 1.57% decreased by 5 basis points ('bps') compared with 1H24, mainly due to an adverse impact from foreign currency translation differences and the disposal of our business in Argentina, partly offset by the benefit of our structural hedge.
- ECL of $1.9bn were $0.9bn higher than in 1H24. The charge in 1H25 included charges related to the Hong Kong commercial real estate ('CRE') sector. This reflected updates to their models used for ECL calculations, an increase in allowances for new defaulted exposures, as well as the over-supply of non-residential properties putting continued downward pressure on rental and capital values. The 1H25 period also included allowances to reflect heightened uncertainty and a deterioration in the forward economic outlook due to geopolitical tensions and higher trade tariffs. In 1H24, the ECL charge benefited from allowance releases, mainly in the UK.
- Operating expenses of $17.0bn were $0.7bn or 4% higher than in 1H24. Growth reflected restructuring and other related costs associated with their organisational simplification of $0.6bn. It also included higher spend and investment in technology. These increases were partly offset by cost reductions due to their disposals in Canada and Argentina.
- Target basis operating expenses were $0.4bn or 3% higher than in 1H24, primarily due to higher spend and investment in technology and the impacts of inflation.
- Customer lending balances of $982bn increased by $51bn compared with 31 December 2024, including favourable foreign currency translation differences. On a constant currency basis, lending balances increased by $7bn, mainly in their UK business.
- Customer accounts of $1,719bn increased by $64bn compared with 31 December 2024, including favourable foreign currency translation differences. On a constant currency basis, customer accounts decreased by $8bn, mainly from the classification of deposits to held for sale, notably $12bn related to their custody business in Germany, and outflows in CIB in the UK, partly offset by an increase in their Hong Kong business.
- Common equity tier 1 ('CET1') capital ratio of 14.6% decreased by 0.3 percentage points compared with 31 December 2024, driven by an increase in risk-weighted assets ('RWAs'), partly offset by an increase in CET1 capital through profit generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements.
