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HSBCHSBC HOLDINGS PLCNYSE
HSBC Holdings plc Reports Decline in Annual Operating Profit and Net Income for FY 2025, Sets 2028 Revenue Growth Target
20-FEarningsvolatileImpact64
HSBC Price
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Why It Matters
HSBC's annual performance shows a contraction in core profitability and a significant reduction in operating cash flow, which could impact investor sentiment. While the company has set ambitious long-term growth and RoTE targets, the immediate capital impact from the Hang Seng Bank privatization and the resulting pause in share buy-backs signal near-term headwinds
Annual Report Snapshot
- Fiscal Year End
- December 31, 2025
- Profit from Operating Activities
- $27.996 B
- Net Income
- $23.131 B
- Operating Cash Flow
- $29.766 B
HSBC Holdings plc reported its financial results for the fiscal year ended December 31, 2025, showing a decline in both operating profit and net income compared to the previous year. Profit from operating activities decreased by 4.8% to $27.996 billion, and net income fell by 7.5% to $23.131 billion. Basic earnings per share also saw a slight decrease from $1.25 to $1.21. A notable concern is the significant drop in cash flows from operating activities, which decreased by 54.4% to $29.766 billion. Despite these declines, the company has set forward-looking targets, aiming for revenue growth rising to 5% year-on-year by 2028 on a constant currency basis and a Return on Tangible Equity (RoTE) of 17% or better for 2026, 2027, and 2028
Score64
Score Rationale
volatileHSBC reported a routine decline in annual operating profit and net income, alongside a significant drop in operating cash flow, but set a positive revenue growth target for 2028.
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HSBC Market Context
SectorFinancial Services
IndustryBanks
Market Cap$345.46B
Shares Outstanding3.44B
Public Float3.44B
Public Float %100.0%