HSBC Announces Group Reporting Changes and Data Pack Release

Key Points from the HSBC Holdings plc Announcement

• HSBC has published changes to its internal and external reporting process for its four main business segments and Corporate Centre, reflecting the transition of certain clients between segments, effective from 1 January 2026.
• The transition mainly involves moving clients from the Hong Kong and UK business segments to the Corporate and Institutional Banking segment. This is aimed at better serving their specific needs.
• Importantly, this transition does not change HSBC’s reportable segments under IFRS 8, but it does alter how segment-level financial information is presented for 2024 and 2025.
• HSBC has released a comprehensive data pack showing re-presented historical segment data for quarters and full years 2024 and 2025, allowing investors to see the impact of the transition.
• All information in the data pack is unaudited and does not impact HSBC’s consolidated financial results or financial position.
• HSBC’s reported results are, as always, prepared under International Financial Reporting Standards (IFRS). The group also uses non-GAAP and alternative performance measures, especially constant currency figures to eliminate FX distortions.
• HSBC continues to highlight the use of constant currency performance as a key tool for both internal and external reporting, aligning management’s assessment with what is presented to investors.
• HSBC has issued a cautionary statement regarding forward-looking statements, reminding investors these are subject to risks and uncertainties.

Detailed Financial Highlights

• HSBC remains one of the world’s largest banking and financial services organizations, with assets of US\$3,233 billion as of 31 December 2025.
• The group’s consolidated income statement for 2025 shows:
  • Net interest income: \$34.8bn (2025), up from \$32.7bn (2024)
  • Net fee income: \$13.3bn (2025), up from \$12.3bn (2024)
  • Profit before tax: \$29.9bn (2025), down from \$32.3bn (2024)
  • Profit after tax: \$23.1bn (2025), down from \$25.0bn (2024)
  • Return on average equity: 12.3% (2025), down from 13.6% (2024)
• Dividends per share declared for 2025: \$0.75 (up from \$0.66 in 2024)
• Capital ratios remain strong:
  • CET1 ratio: 14.9% (2025)
  • Tier 1 ratio: 17.3% (2025)
  • Total capital ratio: 20.5% (2025)
  • Leverage ratio: 5.3% (2025)
• Shares bought back and cancelled: 84 million in 4Q 2025 (down from 331 million in 4Q 2024), reflecting active capital management.
• Ordinary shareholders’ equity: \$177.5bn (2025), up from \$165.9bn (2024)
• Tangible equity: \$165.2bn (2025), up from \$154.3bn (2024)

Segment-level Performance

Hong Kong Business

• Revenue for 2025: \$15.5bn, up from \$14.7bn in 2024
• Profit before tax: \$9.3bn (2025), up from \$8.8bn (2024)
• Loans and advances to customers (net): \$223.7bn (2025)
• Risk-weighted assets: \$136.2bn (2025)

UK Business

• Revenue for 2025: \$12.5bn, up from \$11.5bn in 2024
• Profit before tax: \$6.4bn (2025), up from \$6.3bn (2024)
• Loans and advances to customers (net): \$299.5bn (2025)
• Risk-weighted assets: \$149.6bn (2025)

Corporate and Institutional Banking (CIB)

• Revenue for 2025: \$28.4bn, up from \$27.5bn in 2024
• Profit before tax: \$12.1bn (2025), up from \$12.0bn (2024)
• Loans and advances to customers (net): \$314.9bn (2025)
• Risk-weighted assets: \$415.4bn (2025)

International Wealth and Premier Banking

• Revenue for 2025: \$14.5bn, up from \$14.0bn in 2024
• Profit before tax: \$4.4bn (2025), up from \$4.0bn (2024)
• Loans and advances to customers (net): \$104.0bn (2025) (combined from sub-entities)

Corporate Centre

• Revenue is negative in 2025: (\$1.5bn) due to internal eliminations and group-level adjustments.
• Profit before tax: (\$891m) in 4Q 2025, showing volatility due to group-level activities.

Notable Items and Alternative Performance Measures

• HSBC discloses notable items that are outside the normal course of business and generally non-recurring, such as disposals, wind-downs, restructuring costs, and impairment losses.
• Major notable items for 2025 include:
  • Revenue notable items: (\$1.36bn) in 4Q25, (\$4.94bn) for FY24
  • Cost notable items: (\$425m) in 4Q25, (\$2.96bn) for FY25
  • Impairment losses of interest in BoCom associate: (\$1bn) in 2Q25
• Constant currency performance is emphasized, with reconciliations provided to IFRS measures.

Potential Price Sensitivity: What Shareholders Should Know

• The transition of clients between business segments does not change the overall group results, but may affect segment-level growth rates and profitability, which is important for analysts assessing segment performance.
• Active capital management via buybacks may support share price, as fewer shares outstanding can increase EPS and shareholder value.
• Dividend increases (\$0.75/share declared in 2025 vs \$0.66/share in 2024) are positive for shareholders seeking income.
• Strong capital ratios indicate resilience and ability to withstand economic shocks, supporting investor confidence.
• Notable items (large disposals, restructuring costs, and impairments) may affect quarterly volatility and investor sentiment, especially if such items recur or are unexpectedly large.
• Forward-looking statements are subject to significant risks and uncertainties; investors should not rely solely on historical data for future performance.

Conclusion

HSBC’s announcement of segment client transitions and the release of a detailed historical data pack is significant for financial analysts and investors tracking segment-level performance and trends. While the changes do not affect the consolidated group results, they may impact how segment growth and profitability are evaluated. The continued strength in capital, increased dividends, and active buybacks are supportive for shareholders. However, the presence of large notable items and impairments highlights ongoing volatility and restructuring activity, which investors should monitor closely.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial data is unaudited and historical; HSBC Holdings plc cautions that forward-looking statements are subject to risks and uncertainties, and investors should not rely solely on past performance or segment transitions for future investment decisions. Please consult HSBC’s official filings and financial reports for definitive information.

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