HSBC Holdings plc (HSBC) Q2 FY2026

Business

Source: FY2025 Annual Report on Form 20-F (Annual Report and Accounts 2025), accession 0001089113-26-000010.

HSBC is one of the world's largest banks, with total assets of $3.23 trillion at 31 December 2025 ($3.44 trillion at 30 June 2026). It is a universal bank that takes deposits from, lends to and moves money for retail customers, wealthy individuals, small businesses, corporates and financial institutions in 56 markets. Its heaviest concentration is in Hong Kong and the UK, its two home markets. Deposits fund the business: customer accounts were $1.79 trillion at end-2025, against net customer loans of $988 billion, a loan-to-deposit ratio of 55%. HSBC reports a surplus of deposits over loans in each of its four businesses and in its main operating banks.

The company earns money in two ways. The first is net interest income on that deposit base, which management tracks as "banking NII" ($44.1 billion in 2025). The second is fee and other income ($26.9 billion), which comes mainly from two franchises. Wealth (investment distribution, insurance, private banking and asset management) contributed $9.4 billion, and Wholesale Transaction Banking (foreign exchange, payments, trade finance and securities services) contributed $10.9 billion. Together these made up 2025 revenue excluding notable items of $71.0 billion. Reported revenue was $68.3 billion.

Since 1 January 2025 HSBC has been organised into four businesses plus a Corporate Centre. The figures below are 2025 revenue and reported profit before tax, as the 20-F gives them.

• Hong Kong (revenue $15.9 billion, profit before tax $9.6 billion): Retail Banking and Wealth and Commercial Banking at HSBC Hong Kong and at Hang Seng Bank. HSBC is the market leader in Hong Kong, with a deposit share of about 25% on deposits of more than $540 billion and a 32.6% share of trade finance. Hang Seng Bank became wholly owned in January 2026 and keeps its own licence, brand and branches.
• UK (revenue $12.9 billion, profit before tax $6.7 billion): UK Retail Banking and Wealth and UK Commercial Banking, including first direct, M&S Bank and HSBC Innovation Bank. It has more than $300 billion of customer loans and an 8.1% share of UK mortgages.
• Corporate and Institutional Banking (CIB) (revenue $27.6 billion, profit before tax $11.4 billion): the international network business. It combines Commercial Banking outside the UK and Hong Kong with Global Banking and Markets. It holds about $600 billion of deposits and facilitated about $900 billion of trade in 2025. HSBC is a leading provider of cross-border payments, cash management and foreign exchange.
• International Wealth and Premier Banking (IWPB) (revenue $14.5 billion, profit before tax $4.4 billion): Premier banking outside Hong Kong and the UK, plus the Private Bank, Asset Management and Insurance. The insurance contractual service margin, a store of future insurance profit, was $14.6 billion at end-2025.
• Corporate Centre holds the Group's largest associate stake, a 16.00% interest in Bank of Communications (BoCom). The stake was cut from 19.03% when BoCom completed a capital issuance in June 2025. HSBC also owns an associate stake in Saudi Awwal Bank.

Outside its home markets, HSBC focuses on mainland China, India, Singapore and the UAE. It is the largest foreign bank in India, Singapore and the UAE, and in 2025 those three markets earned profit before tax of $1.9 billion, $1.5 billion and $0.8 billion. Wealth balances across the Group were $2.1 trillion at end-2025, of which $1.2 trillion was booked in Asia. On a new definition adopted from 2026, which adds wealth customers' deposits and removes third-party distribution assets, the figure was $1.6 trillion. The Group had 208,720 full-time-equivalent staff at end-2025.

Strategy. Under Group CEO Georges Elhedery the strategy is to simplify the bank, exit non-core businesses and reinvest the money saved in Wealth, transaction banking and the two home markets. The four-business structure halved the number of operating businesses. HSBC announced 11 business exits in 2025, among them Malta, Uruguay, the UK life insurer, German custody, Bahrain and Sri Lanka retail, its stake in Grupo Financiero Galicia, and M&A and equity capital markets advisory in the US, UK and Europe. These followed the 2024 disposals of the Canadian banking business and the Argentine business. The largest strategic move was the $13.7 billion (HK$106 billion) privatisation of Hang Seng Bank, which completed on 26 January 2026. Management expects $0.5 billion of pre-tax revenue and cost synergies from it by the end of 2028, at a cost of $0.6 billion in restructuring.

In February 2026 HSBC set targets for 2026–2028:

• a return on average tangible equity (RoTE), excluding notable items, of 17% or better in each year;
• revenue growth, at constant currency and excluding notable items, rising to 5% in 2028;
• a dividend payout ratio of 50% on its target basis;
• a CET1 capital ratio managed within 14%–14.5%.

HSBC traces its origins to 1865, when it was founded to finance trade between Hong Kong, Shanghai and the rest of the world. That history explains why Asia and trade finance still sit at the centre of the franchise.

Risk factors

Source: FY2025 Form 20-F, "Risk overview" and "Risk factors", accession 0001089113-26-000010; updated top risks from the Interim Report 2026 on Form 6-K, accession 0001089113-26-000025.

These are the risks the company itself treats as most material, condensed.

• Macroeconomic, interest-rate and tariff exposure. Earnings depend on the global cycle. Volatile US trade and tariff policy is the main source of uncertainty: it could cut trade flows, investment and customer activity. Lower policy rates squeeze net interest margins, while higher rates raise debt-service costs and credit losses. HSBC also warns that if the productivity gains priced into high AI and technology valuations do not arrive, a sharp market correction could hurt growth, collateral values and customers' finances.
• Geopolitics, US–China competition and sanctions. Asia, and Hong Kong in particular, contributes a large share of Group profit, so US–China tensions matter more to HSBC than to most banks. These include tariffs, export controls, investment restrictions and developments around Hong Kong and Taiwan. Complying with the law of one jurisdiction can be seen as backing its policy against another's. The US has broad discretion to sanction non-US banks over Russia-related dealings, and such action against any HSBC entity would have severe commercial and reputational consequences. By mid-2026 the conflict in the Middle East had added oil-price volatility and supply-chain disruption, and HSBC is monitoring potential impacts on its Gulf operations.
• Commercial real estate in Hong Kong and mainland China. Excess supply has kept mainland property weak. In Hong Kong, an oversupply of non-residential property has pushed rents and capital values down and liquidity remains tight for mid-sized and sub-investment-grade borrowers. Hong Kong CRE charges were $0.7 billion in 2025 and a further $0.2 billion in 1H26.
• Credit and model risk. Expected credit losses rest on forward-looking scenarios and models that may not capture new risks. Management overlays are used where models fall short. Portfolio-level provisions may also miss idiosyncratic losses. In 1H26 a single fraud-related securitisation exposure cost $0.4 billion.
• Regulation and capital. Basel 3.1 takes effect largely from 1 January 2027, with an output floor and new risk-weighting approaches. The UK is reviewing bank capital levels and ring-fencing. The EU branch requirement, effective from 11 January 2027, forces non-EU banks to serve EU clients through local branches or subsidiaries. A programme to strengthen regulatory reporting may still affect reported ratios such as CET1, the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR).
• Litigation and investigations. HSBC faces large legacy claims. The largest are the Madoff-related suits. In Luxembourg, Herald Fund seeks $521 million in cash plus restitution of securities, or alternatively $5.6 billion in damages, and HSBC holds a $1.1 billion provision against that case. Alpha Prime seeks up to $3.3 billion and Senator Fund $1.4 billion. HSBC also faces US Anti-Terrorism Act suits, foreign-exchange and precious-metals antitrust claims, and money-laundering investigations of HSBC Private Bank (Suisse) in Switzerland and France. HSBC Bank USA, the Group's main US-dollar correspondent bank, carries heightened financial-crime risk from the business it clears for non-US affiliates.
• Resolution regime. If HSBC were failing, the Bank of England's powers under the UK Banking Act 2009 would allow ordinary shares to be cancelled, transferred or heavily diluted through bail-in. The preferred strategy for HSBC is a Multiple Point of Entry bail-in.
• Funding and ratings. Demand and short-notice deposits are the core of HSBC's funding. HSBC Holdings also relies on wholesale markets: it issued $25.7 billion of senior debt in 2025. A ratings downgrade or market disruption would raise funding costs, require more collateral and squeeze margins.
• Currency translation. HSBC reports in US dollars, but much of its business is in other currencies. A weaker or stronger dollar, or a currency de-pegging from the dollar, moves reported income, equity and capital.
• Technology, cyber, AI and third parties. HSBC runs a large, complex technology estate and depends on third-party suppliers. AI is making cyber-attacks faster and more scalable. Data-localisation and privacy laws limit intra-group data sharing, which matters for cross-border financial-crime controls.
• Strategic execution. The reorganisation, the cost programme and a long list of disposals carry risk at the same time: the targeted savings and returns may not arrive, and disposals can crystallise losses through currency-reserve recycling.
• Holding-company structure. HSBC Holdings depends on dividends and interest from its subsidiaries to service its debt and pay shareholders, and local regulators and laws can restrict those payments.
• Accounting judgements. The value-in-use test on the BoCom stake led to a $1.0 billion impairment in 2025, and the company says further impairment cannot be ruled out. Other significant judgements cover goodwill, deferred tax, legal provisions and fair values.
• ESG and climate. Climate change brings credit, conduct, greenwashing and litigation risk. Requirements and expectations diverge across the UK, EU and US, which complicates compliance.

Management's discussion, FY2025

Source: FY2025 Form 20-F, "Highlights", "Financial overview" and Group CEO's letter, accession 0001089113-26-000010.

Earnings. Reported profit before tax fell 7% to $29.9 billion, and profit after tax fell to $23.1 billion. The decline was driven by notable items, which had a net adverse effect of $4.9 billion compared with 2024. The 2025 items were:

• $2.1 billion of dilution and impairment losses on BoCom;
• $1.5 billion of reserve-recycling losses on the sale of the French retained home-loan portfolio;
• $1.4 billion of legal provisions, including the Madoff-related Luxembourg claim;
• $1.0 billion of restructuring costs from the simplification programme.

2024, by contrast, had included a $4.8 billion gain on selling the Canadian bank. Against that, Argentina brought a $1.0 billion disposal loss and $5.2 billion of reserve recycling. Excluding notable items and at constant currency, profit before tax rose 7% to $36.6 billion. RoTE was 13.3% reported and 17.2% excluding notable items, beating the "mid-teens" target. Basic EPS was $1.21, against $1.25 in 2024.

Revenue and margins. Reported revenue rose 4% to $68.3 billion, and revenue excluding notable items rose 5% to $71.0 billion at constant currency. The growth came from fees. Wealth fee and other income rose 24% to $9.4 billion, led by insurance (a higher release of contractual service margin), the Private Bank and investment distribution. Wholesale Transaction Banking rose 4% to $10.9 billion, led by foreign exchange during volatile markets. Net interest income rose $2.1 billion to $34.8 billion. Maturing structural hedges were reinvested at higher yields, deposits grew, and funding costs for the trading book fell by $1.7 billion. Together these outweighed a $1.6 billion loss of income from the Argentine and Canadian disposals and tighter deposit margins. Banking NII was broadly flat at $44.1 billion, and the net interest margin rose 3 basis points to 1.59%.

Credit, costs and tax. Expected credit losses rose to $3.9 billion, or 39bps of average loans, including $0.7 billion on Hong Kong CRE and $0.2 billion on mainland China CRE. Reported operating expenses rose 10% to $36.4 billion, mainly because of $3.0 billion of notable items. On HSBC's target basis, costs rose 3% to $33.5 billion, in line with guidance. The simplification programme had actioned $1.2 billion of annualised savings by end-2025. The share of profit from associates fell to $1.9 billion after the BoCom impairment. The effective tax rate was 22.7%.

Balance sheet, capital and returns. Customer loans rose $57.7 billion to $988 billion, mainly UK mortgages and commercial lending, and customer accounts rose $131.9 billion to $1.79 trillion. Both increases include currency translation. The CET1 ratio was steady at 14.9%, the LCR was 137% and the NSFR 143%. Dividends for 2025 totalled $0.75 per share, or $12.9 billion. With $6 billion of buy-backs, total distributions came to $18.9 billion. Buy-backs were then paused until CET1 returned to the target range, because the Hang Seng privatisation took a net 110bps off CET1 in January 2026.

Guidance given in February 2026. For 2026: banking NII of at least $45 billion, expected credit losses of around 40bps of average loans, and target-basis cost growth of about 1%. Over the medium term, HSBC targets 30–40bps of credit losses.

Current period, first half and second quarter of 2026

Source: Interim Report 2026 on Form 6-K for the half-year ended 30 June 2026, filed 4 August 2026, accession 0001089113-26-000025.

First half. Profit before tax rose 23% to $19.5 billion, and profit after tax rose 23% to $15.3 billion. Part of the increase reflects the absence of the 1H25 BoCom losses: notable items were a net $2.2 billion less adverse than a year earlier. Excluding notable items and at constant currency, profit before tax rose 6% to $20.4 billion.

Revenue rose 11% to $37.7 billion. Excluding notable items and at constant currency, revenue rose 6%, to $38.2 billion. The drivers were:

• banking NII, up $1.6 billion to $22.9 billion on deposit growth and structural-hedge reinvestment;
• Wealth fee and other income, up 20% to $5.5 billion, especially investment distribution in IWPB and Hong Kong and insurance new business in Hong Kong;
• Wholesale Transaction Banking, up 6% to $6.1 billion;
• a one-off $0.2 billion gain on a property sale.

The wind-down of M&A and equity capital markets advisory in the UK, Europe and the US reduced investment-banking fees.

The net interest margin rose 4bps to 1.61%. Expected credit losses rose to $2.4 billion, or 47bps annualised. They included a $0.4 billion stage 3 charge on a fraud-related, secondary securitisation exposure to a UK financial sponsor in CIB, $0.2 billion on Hong Kong CRE, and allowances for the Middle East conflict. Operating expenses rose 2% to $17.4 billion, and the cost-efficiency ratio improved to 46.2% from 49.9%. Annualised RoTE was 18.2% reported and 19.1% excluding notable items. Basic EPS was $0.85, up from $0.65.

Second quarter. Profit before tax rose 60% to $10.1 billion and revenue rose 16% to $19.1 billion. The comparison is flattered because 2Q25 had carried the $2.1 billion of BoCom losses. Banking NII rose $0.9 billion to $11.6 billion. Expected credit losses were stable at $1.1 billion, and operating expenses fell 2% to $8.7 billion.

Businesses (1H26, constant currency). Every business grew revenue. The figures are profit before tax, with annualised RoTE excluding notable items in brackets.

• Hong Kong: $5.1 billion, up 14% (44.3%). Revenue was up 6%, Wealth fees up 22%, and credit losses fell to $0.5 billion from $0.9 billion.
• UK: $3.3 billion, up 3% (20.8%). Loans were up 7% and banking NII up 6%, but credit losses rose to $0.5 billion from $0.3 billion.
• CIB: $7.3 billion, up 7% (18.9%). Revenue was up 5% and deposits up 16%. Credit losses almost tripled to $0.9 billion, including the securitisation fraud case.
• IWPB: $2.6 billion, up 22% (27.4%). Wealth fees were up 18% and new-business contractual service margin up 49%.
• Corporate Centre: a profit of $1.2 billion, against a $0.7 billion loss in 1H25, reflecting the absence of the BoCom losses.

Balance sheet and capital. Customer loans grew $40 billion at constant currency to $1.02 trillion, the growth led by Hong Kong. Customer accounts grew $56 billion to $1.83 trillion, mostly in CIB. Total assets reached $3.44 trillion. The CET1 ratio fell to 14.1% from 14.9%, reflecting the Hang Seng Bank privatisation, dividends and higher risk-weighted assets ($906 billion), partly offset by profits. That puts it back inside the 14%–14.5% target range. The LCR was 134%. Tangible net asset value per share was $9.36. HSBC Holdings' distributable reserves fell to $36.2 billion after $10.0 billion of distributions. The Board declared a second interim dividend of $0.10 per share, the same as the first, and resumed buy-backs with a programme of up to $1 billion. Buy-backs had been paused for three quarters.

Outlook (as of the interim report). HSBC reaffirmed its 2026–2028 targets. Guidance for 2026 changed as follows:

• banking NII: raised to at least $46 billion, from "around $46 billion" (February's annual report had said at least $45 billion);
• expected credit losses: kept at around 45bps of average loans (February had said around 40bps);
• target-basis cost growth: kept at about 1%, though extra performance-related pay could push it modestly higher;
• CET1: kept within 14%–14.5%.

The simplification programme had actioned $1.7 billion of annualised savings by mid-2026, for $1.4 billion of restructuring costs. The savings goal was raised from $1.5 billion to about $2.0 billion by end-2026, within the original $1.8 billion restructuring budget.

Portfolio reshaping in the half. In the first half HSBC completed four exits:

• the UK life insurer HSBC Life (UK), sold to Chesnara on 30 January (a $0.2 billion reserve-recycling loss);
• its South African business, transferred to FirstRand Bank on 27 February;
• Sri Lankan retail banking, sold to Nations Trust Bank on 30 April;
• the wind-down of Bangladesh retail banking.

It also agreed one new sale: Indonesian retail banking goes to PT Bank OCBC NISP under an agreement of 4 May 2026, with a pre-tax gain of up to $0.4 billion expected in 1H27. The sale of HSBC's 70.03% stake in HSBC Bank Malta to CrediaBank was agreed in December 2025; the business met the held-for-sale criteria in the first quarter of 2026, which led to a $0.3 billion loss, and completion is expected in 1H27. A strategic review of the retail and domestic small and mid-sized corporate business in Türkiye has begun; the international wholesale business there is not part of it. Other developments in the half:

• HSBC was granted a stablecoin issuer licence in Hong Kong and plans to issue in the second half.
• It expanded tokenised deposits to six markets, including the US and the UAE.
• On litigation, after the half ended, in July 2026, Luxembourg's Court of Appeal rejected HSBC Securities Services Luxembourg's second appeal on Herald's securities-restitution claim. A further appeal to the Court of Cassation remains possible.
• In May 2026, HSBC Private Bank (Suisse) was placed under formal examination in the French money-laundering investigation.

Subsequent events

Source: Interim Report 2026 on Form 6-K, Note 16 "Events after the balance sheet date", accession 0001089113-26-000025.

The interim report discloses the following events after 30 June 2026. For the disposals, HSBC states the expected gain or loss and the size of the business, not a purchase price.

• Uruguay sale completed (10 July 2026). HSBC Latin America Holdings (UK) completed the sale of HSBC Bank (Uruguay) S.A. to a subsidiary of BTG Pactual Holding SA. At 30 June the business held $2.3 billion of assets and $2.1 billion of liabilities as held for sale. Only immaterial reserve losses were recycled on completion.
• HSBC Life Singapore to Allianz (agreed 24 July 2026). HSBC Insurance (Asia Pacific) Holdings agreed to sell HSBC Life (Singapore) Pte. Ltd to Allianz Asia Holdings Pte. Ltd. HSBC expects a pre-tax gain of about $1.8 billion at Group level, net of transaction and migration costs, goodwill write-off and currency-reserve recycling. The gain should be recognised mostly on completion, expected in 1H27 and subject to regulatory approval. At 30 June, $10.7 billion of assets and $10.4 billion of liabilities, including $1.4 billion of insurance contractual service margin, were classified as held for sale.
• Australian retail exit (agreed 31 July 2026). HSBC Bank Australia agreed to sell its home and personal loan portfolio, $25.3 billion of assets at 30 June, to Virgo BidCo Pty Ltd, which is owned by funds managed by affiliates of Blackstone Inc. Completion is expected in 1H27, subject to regulatory and competition approvals, with an immaterial loss. The rest of the Australian retail bank will be wound down over about 18 months. CIB, Asset Management and Private Banking will move into the Sydney branch of The Hongkong and Shanghai Banking Corporation. HSBC expects $0.3 billion of restructuring costs and write-offs. At 30 June there were also $0.3 billion of currency-translation losses, which are expected to be recycled through the income statement.
• Egyptian retail sale (agreed 2 August 2026). HSBC Bank Egypt agreed to sell its retail banking business to Emirates NBD Egypt, a subsidiary of Emirates NBD Bank PJSC. HSBC expects a pre-tax gain of about $0.3 billion when the deal completes in 2H27, subject to regulatory approval. The business holds $0.4 billion of assets and $2.8 billion of liabilities and is expected to be classified as held for sale in the third quarter of 2026.
• Distributions (4 August 2026). The Board approved a second interim dividend for 2026 of $0.10 per share and announced a share buy-back of up to $1 billion, to be completed by the third-quarter 2026 results.

Filings that contain financial statements

• Form 6-K, accession 0001089113-26-000025, filed 4 August 2026. The Interim Report 2026 for the six months ended 30 June 2026. It holds the full interim condensed consolidated financial statements: the consolidated income statement, statement of comprehensive income, balance sheet, statement of changes in equity and cash flow statement, with notes (including held-for-sale disposal groups, events after the balance sheet date and capital structure), plus the summary financial tables and the risk and capital sections. This is the primary source for first-half and second-quarter figures.
• Form 6-K, accession 0001654954-26-007212, filed 4 August 2026. The "2026 Interim results" press release for the same period. It holds a key financial metrics table, the condensed consolidated income statement, consolidated balance sheet, consolidated statement of changes in equity and consolidated statement of cash flows (the same condensed statements as the Interim Report above), plus the highlights, capital ratios and outlook.

No other 6-K filed in the window carries financial statements. The remainder are debt, capital-return, governance and administrative notices.

Interim results and outlook (4 August 2026; accessions 0001654954-26-007212 and 0001089113-26-000025)

• First half 2026 profit before tax was $19.5 billion (first half 2025: $15.8 billion, up 23%). Profit after tax was $15.3 billion. Revenue was $37.7 billion, up 11%. Net interest margin was 1.61%. Annualised return on average tangible equity was 18.2%.
• Second quarter 2026 profit before tax was $10.1 billion, up 60% on the second quarter of 2025. That prior-year quarter included $2.1 billion of dilution and impairment losses on the Bank of Communications associate.
• Expected credit losses were $2.4 billion in the half, $0.4 billion higher than a year earlier. They included a $0.4 billion fraud-related secondary securitisation exposure with a financial sponsor in the UK and $0.2 billion on Hong Kong commercial real estate.
• The common equity tier 1 ratio was 14.1%, down from 14.9% at 31 December 2025. The release attributes the fall to the Hang Seng Bank privatisation, dividends and higher risk-weighted assets.
• The Hang Seng Bank privatisation completed on 26 January 2026, before the events window. The statements record a $13.7 billion equity impact, comprising $7.0 billion of derecognised non-controlling interests and a $6.7 billion reduction in shareholders' equity.
• Guidance raised: banking net interest income is now expected to be at least $46 billion for 2026, against "around $46 billion" previously. Unchanged: return on average tangible equity excluding notable items of 17% or better for 2026 to 2028; an expected credit loss charge of about 45 basis points of average gross customer loans for 2026; target-basis operating expense growth of about 1% for 2026; a 50% dividend payout ratio target; and management of the CET1 ratio within a 14% to 14.5% medium-term range.
• A second interim dividend of $0.10 per ordinary share was approved, and a share buy-back of up to $1 billion was announced.

Portfolio simplification: disposals (all from the interim report notes, accession 0001089113-26-000025, unless stated)

Closed:

• UK life insurance (HSBC Life (UK) Limited): sale to Chesnara plc completed 30 January 2026; $0.2 billion loss on recycling of currency reserves.
• South Africa: transfer of the business to FirstRand Bank completed 27 February 2026.
• Sri Lanka retail banking: sale to Nations Trust Bank completed 30 April 2026; immaterial gain.
• HSBC Bank (Uruguay): sale to a BTG Pactual subsidiary completed 10 July 2026 (after the period end); immaterial reserve recycling.

Signed, not yet closed (all subject to regulatory approval):

• HSBC Life (Singapore): agreement of 24 July 2026 to sell to Allianz Asia Holdings. Estimated pre-tax gain of $1.8 billion at completion, expected in the first half of 2027. Classified as held for sale at 30 June 2026 ($10.7 billion of assets).
• Australia home and personal loan portfolio: agreement of 31 July 2026 to sell to a Blackstone-affiliated buyer. The portfolio is $25.3 billion of assets, completion is expected in the first half of 2027, and the loss is described as immaterial. The remaining Australian retail business is to be wound down over about 18 months, with about $0.3 billion of restructuring costs and write-offs.
• Egypt retail banking: binding agreement of 2 August 2026 to sell to Emirates NBD Egypt. Estimated pre-tax gain of $0.3 billion, completion expected in the second half of 2027.
• Indonesia retail banking: binding agreement of 4 May 2026 to sell to PT Bank OCBC NISP. Gain of up to $0.4 billion, completion expected in the first half of 2027.
• HSBC Bank Malta (70.03% stake): sale and purchase agreement with CrediaBank signed 22 December 2025. A $0.3 billion loss was recognised on held-for-sale classification, and completion is expected in the first half of 2027.

Capital returns

• Share buy-back (5 August 2026, accession 0001654954-26-007277). HSBC announced a buy-back of up to $1 billion, with BNP Paribas buying as principal between 6 August and no later than 23 October 2026. Shares are cancelled.
• Buy-back concluded (28 September 2026, accession 0001654954-26-008602). HSBC reported the programme complete after about 48.7 million shares were repurchased for approximately $998 million. 31,735,502 shares were bought on UK venues, and 16,921,600 on the Hong Kong exchange. Issued share capital stood at 17,141,942,291 shares after the UK cancellations.
• Share count (6 October 2026, accession 0001654954-26-008816). After cancelling 6,918,800 Hong Kong-repurchased shares, HSBC has 17,135,023,491 ordinary shares in issue and none in treasury. The programme was reported through 37 daily "Transaction in own shares" notices from 6 August to 25 September 2026, the 28 September conclusion notice and one amendment (6-K/A, accession 0001654954-26-008165, 8 September).
• Second interim dividend for 2026 (14 September 2026, accession 0001654954-26-008329). $0.10 per ordinary share, payable 25 September 2026 to holders of record on 14 August 2026, equal to $0.50 per American Depositary Share (each representing five ordinary shares).

Debt issuance, tender offers and redemptions

• Tender offers for four series of 2028 senior notes (5 to 13 August 2026; accessions 0001654954-26-007272, -007327, -007535, -007552). HSBC launched cash offers with a $5.0 billion cap on 5 August to manage its debt portfolio, then raised the cap to $6.75 billion on 6 August. Results on 13 August: $4.90 billion of aggregate consideration paid for notes tendered and accepted, with the May 2028 notes prorated at 66.97% against a $1.0 billion sub-cap. Settlement was 17 August 2026, and the notes accepted are cancelled and retired. The offers were financed from the new dollar issuance below.
• US dollar senior notes (priced 5 August; issued 14 August 2026; accessions 0001654954-26-007627 and 0001193125-26-351411). $2.5 billion 5.243% fixed/floating notes due 2032, $3.25 billion 5.729% fixed/floating notes due 2037 and $1.0 billion floating rate notes due 2032, under the Form F-3 shelf registration, with a New York Stock Exchange listing to be sought.
• Other senior issuance. All of the following are HSBC Holdings plc senior unsecured notes:
  • 17 August 2026: S$450 million (about $352.44 million at the closing rate) 2.950% resettable notes due 2032 (0001654954-26-007688).
  • 28 August 2026: CNY 2.5 billion (about $371.69 million) 1.950% notes due 2030 and CNY 1.5 billion (about $223.02 million) 2.300% notes due 2034 (0001654954-26-007932).
  • 11 September 2026: ¥21.6 billion (about $140.52 million), ¥25.7 billion (about $167.20 million) and ¥7.0 billion (about $45.54 million) callable bonds due 2030, 2032 and 2037 (0001654954-26-008266).
  • 11 September 2026: £750 million (about $1.01 billion) 6.061% fixed/floating notes due 2035, under a registered SEC offering (0001654954-26-008283; exhibits in 0001628280-26-061495).
  • 22 September 2026: €1.0 billion (about $1.14 billion) floating notes due 2030, €1.25 billion (about $1.43 billion) 4.431% notes due 2032 and €1.5 billion (about $1.71 billion) 4.777% notes due 2037 (0001654954-26-008508).
• Redemption notices.
  • 28 September 2026 (0001654954-26-008596): the $2.5 billion 2.251% fixed/floating senior notes due 2027 are to be redeemed in full at par, with the redemption date of 22 November 2026 and payment on 23 November 2026.
  • 9 September 2026 (0001654954-26-008193): the CHF 300 million (about $370.28 million) 0.32% notes due 2027 are to be redeemed on 3 November 2026.

Management and board

• Group CFO succession (10 September 2026, accession 0001654954-26-008240). Group CFO Pam Kaur told the Board she plans to leave the role in 2027 and will not stand for re-election as a director at the 2027 AGM. Her retirement date will be set later and will be no later than the 2027 AGM. She is then to take an advisory role supporting the Group CEO. The Board has begun a search that will consider internal and external candidates.
• Board changes (25 September 2026, accession 0001654954-26-008568). Alison Platt is appointed an independent non-executive director from 1 October 2026, subject to election at the 2027 AGM. She will succeed Dame Carolyn Fairbairn as chair of the Group Remuneration Committee on 24 February 2027, subject to regulatory approval. Dame Carolyn has been appointed chair of HSBC UK Bank plc.

Other disclosures

• Employee share awards: conditional awards over 286,184 shares granted 19 August 2026 (0001654954-26-007766) and savings-related options over 7,867,865 shares granted 23 September 2026 (0001654954-26-008544). Managers' dividend-reinvestment share acquisitions were notified on 28 September 2026 (0001654954-26-008600).
• Legal: the interim report notes settlements in principle in several matters (Israel and UK foreign exchange claims, Canada precious metals, US gilts, Mexican government bonds), each described as not significant and fully provisioned. A formal examination of HSBC Private Bank (Suisse) SA in the French money-laundering investigation began in May 2026.

Not reflected in the filings

No acquisition or business combination was announced in this window; the disposal activity above is the portfolio change reported. No change to the dividend payout policy was filed beyond the $0.10 second interim dividend.

About this file

HSBC annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Accounting basis. IFRS Accounting Standards, audited consolidated financial statements, Annual Report and Accounts 2025 on Form 20-F

HSBC quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Accounting basis. IFRS Accounting Standards; quarterly figures from the Interim Report 2026 on Form 6-K financial performance tables (the interim statements themselves are presented for half-years)

HSBC year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Accounting basis. IFRS Accounting Standards, IAS 34 interim condensed consolidated financial statements (unaudited), Interim Report 2026 on Form 6-K

HSBC trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Derivation. FY2025 (Form 20-F) plus H1 2026 less H1 2025 (both from the Interim Report 2026 on Form 6-K)
• Accounting basis. IFRS Accounting Standards; derived from the audited FY2025 statements and the unaudited H1 2026 and H1 2025 interim statements

Adjustments

Notes

• Template: bank. HSBC reports under IFRS Accounting Standards in US dollars. The record follows its income statement: net interest income, net fee income, trading and fair value income, insurance lines, and 'revenue', which is HSBC's 'net operating income before change in expected credit losses and other credit impairment charges' (the filing notes this line is also referred to as revenue). Below revenue come expected credit losses, operating expenses, share of profit in associates and joint ventures, profit before tax, tax and profit after tax.
• Sources: the annual periods come from the Annual Report and Accounts 2025 on Form 20-F (accession 0001089113-26-000010), whose statements print FY2025, FY2024 and FY2023 income statements and cash flows and balance sheets at 31 December 2025 and 2024. The half-year and quarterly periods come from the Interim Report 2026 on Form 6-K (accession 0001089113-26-000025), filed 4 August 2026. The interim results announcement furnished on Form 6-K the same day (accession 0001654954-26-007212) carries the same condensed statements.
• FY2023 carries no balance_sheet block because the Form 20-F balance sheet presents only 31 December 2025 and 2024. Its key metrics and regulatory capital figures at 31 December 2023 are taken from the Form 20-F key financial metrics table, which prints all three years.
• HSBC's condensed interim statements are presented for half-years. The three-month figures in the quarterly entries come from two tables in the Interim Report 2026: the reported results table comparing 2Q26 with 2Q25 (with a 1Q26 column), and the net interest income tables (with Quarter to 30 Jun 2026, 31 Mar 2026 and 30 Jun 2025 columns). Those tables print revenue, net interest income, interest income and expense, expected credit losses, operating expenses, operating profit, share of profit in associates and joint ventures less impairment, profit before tax, tax and profit after tax. Q1 2026 plus Q2 2026 equals the half-year 2026 income statement on every one of these lines.
• The quarterly line 'share_of_profit_in_associates_and_joint_ventures_less_impairment' is the filing's own quarterly caption. For Q2 2025 it is negative because it includes the $1.0bn impairment of HSBC's interest in its associate Bank of Communications (BoCom). The half-year and annual entries show the share of profit and the impairment as separate lines, as the income statement does.
• The 30 June 2026 balance sheet, capital ratios, net asset value per share and period-end share count sit on the Q2 2026 entry, the quarter that ends on that date. The interim balance sheet's 31 December 2025 column agrees with the Form 20-F on every line used here, as do the 31 December 2025 key metrics.
• Earnings per share are computed by HSBC on profit attributable to ordinary shareholders of the parent company (net_income_attributable_to_common_shareholders). Profit after tax (net_income) also includes profit attributable to other equity holders, which are the holders of HSBC's contingent convertible capital securities, and to non-controlling interests. Diluted EPS of $0.85 per ordinary share for H1 2026 is $4.25 per ADS, against $0.65 ($3.25 per ADS) for H1 2025.
• Dividends per share are those 'in respect of the period', converted to a per-ADS amount. For H1 2026 they comprise a first interim dividend of $0.10 per ordinary share and a second interim dividend of $0.10 per ordinary share, $1.00 per ADS in total, the same as H1 2025. The FY2024 figure of $0.87 per ordinary share ($4.35 per ADS) includes a special dividend of $0.21 per ordinary share ($1.05 per ADS) paid from the proceeds of the sale of the banking business in Canada.
• Notable items affect the comparisons. H1 2025 and Q2 2025 include a $1.1bn loss on the dilution of HSBC's shareholding in BoCom and a $1.0bn impairment of the BoCom investment. H1 2026 includes $0.3bn of disposal losses on classifying HSBC Continental Europe's shareholding in HSBC Bank Malta as held for sale and $0.2bn of foreign currency translation reserve losses recycled on completing the sale of HSBC Life (UK). FY2025 includes $1.5bn of recycled fair value losses on the sale of the retained French home loan portfolio, as well as the BoCom dilution loss and impairment.
• The privatisation of Hang Seng Bank in H1 2026 cost $13.7bn. It derecognised $7.0bn of non-controlling interests and reduced shareholders' equity by a further $6.7bn, which is why non-controlling interests fell from $7,441m at 31 December 2025 to $399m at 30 June 2026. The cash flow statement shows it as a $13,643m outflow under net cash flow from change in stakes of subsidiaries.
• No free cash flow is presented. A bank's operating cash flow is driven by movements in customer loans, deposits and trading balances, so it is not a measure of distributable cash. The two investment lines in the cash flow statement are net figures: net cash flows from the purchase and sale of property, plant and equipment, and net investment in intangible assets.
• Regulatory capital ratios (CET1, total capital, leverage) and risk-weighted assets are as HSBC presents them at the date of reporting. The liquidity coverage ratio is an average: the preceding 12 months at year-ends (Form 20-F) and an average in the interim report.
• Constant currency figures, banking net interest income, return on average tangible equity excluding notable items and basic EPS excluding material notable items are HSBC's alternative performance measures, and are kept under non_gaap. Banking net interest income adds back the funding costs of the trading book and removes third-party insurance net interest income.
• The trailing twelve months to 30 June 2026 are derived rather than printed: FY2025 from the Form 20-F, plus H1 2026, less H1 2025, both from the Interim Report 2026. On that basis revenue was $71.9bn and profit before tax was $33.6bn.

Uncertainties

• The Interim Report 2026 prints no three-month earnings per share, profit attributable to ordinary shareholders, net fee income or cash flow statement. The quarterly entries therefore carry only the lines in its quarterly tables, and per-share earnings exist only for the half-years and full years.
• No balance sheet at 31 March 2026 or 30 June 2025 is printed in these filings, so the Q1 2026 and Q2 2025 entries carry income statement lines and net interest margin only.
• The quarterly figures come from tables in the interim management report, not from the condensed interim statements. They tie to the half-year statements: Q1 2026 plus Q2 2026 equals H1 2026 on every line carried.
• The trailing-twelve-month figures are derived by arithmetic across two filings and are not printed by HSBC.

Company details

Fiscal period

Source filings