HSBC'S board approves a fourth interim dividend of $0.45 per share, resulting in a total of $0.75 per share in respect of 2025.
Dividends:
On 25 February 2026, the Directors approved a fourth interim dividend in respect of the financial year ended 31 December 2025 of $0.45 per ordinary share (the 'dividend'), an expected distribution of approximately $7.71bn. The dividend will be payable on 30 April 2026 to holders of record on the Principal Register in the UK, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register on 13 March 2026.
The dividend will be payable in US dollars, or in pounds sterling or Hong Kong dollars at the forward exchange rates quoted by HSBC Bank plc in London at or about 11.00am on 20 April 2026. The ordinary shares in London, Hong Kong and Bermuda will be quoted ex-dividend on 12 March 2026. American Depositary Shares ('ADSs') in New York will be quoted ex-dividend on 13 March 2026.
Other financial highlights:
1. The company intends to maintain their dividend policy of a target payout ratio of 50% earnings per ordinary share ('EPS') for each of 2026, 2027 and 2028, subject to meeting capital requirements. EPS for this purpose will continue to exclude material notable items and related impacts.
2. For the financial year 2025, dividends were paid in accordance with their dividend policy. They achieved a dividend payout ratio of 50% of EPS, excluding material notable items and related impacts. Material notable items in 2025 primarily related to the income statement impacts associated with actions to exit or wind-down non-strategic businesses. They also include a dilution loss and the recognition of an impairment of our investment in BoCom, a legal provision relating to the Bernard L. Madoff Investment Securities LLC fraud, as well as the impacts of transactions completed in previous periods, including the sale of their retail banking operations in France, the sale of their banking business in Canada and the disposal of their business in Argentina.
3. The Board has adopted a dividend policy designed to provide sustainable cash dividends, while retaining the flexibility to invest and grow the business in the future, supplemented by additional shareholder distributions, if appropriate.
4. Last February, they set out a three-year target of a mid-teens return on average tangible equity ('RoTE') in each of the three years from 2025 to 2027, excluding notable items. They made clear progress against this target in 2025, now targeting 17% RoTE or better in each year from 2026 to 2028, excluding notable items. They are also targeting year-on-year revenue growth over the same period rising to 5% in 2028 compared with 2027, excluding notable items. They intend to maintain our dividend payout ratio target basis of 50% in 2026, 2027 and 2028.
5. They intend to maintain tight cost discipline, managing target basis cost growth to around 3%, thereby achieving their target. This strong performance enables them to announce a total ordinary dividend per share for 2025 of $0.75, or $12.9bn, an increase of 14% on the prior year. In addition, they completed $6bn of share buy-backs taking total returns to $18.9bn.
