Revenue performance remains inconsistent, with the 2025Q4 efficiency ratio of 21.7% highlighting the operational challenges of managing a global infrastructure across diverse interest rate environments.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Net Interest Income | 34.88B | 32.73B | 35.8B | 30.38B | 26.49B | 27.58B | 30.46B | 30.49B | 28.18B | 29.81B | 34.31B | 36.61B | 37.59B | 40.35B | 43.88B | 41.97B | 44.36B | 48.28B | 43.17B | 37.09B | 33.54B | 31.1B | 25.6B | 15.46B | 14.72B | 0 | 0 | 0 | 11.04B | 9.97B |
| NII Growth % | 6.54% | -8.56% | 17.84% | 14.68% | -3.95% | -9.47% | -0.09% | 8.21% | -5.49% | -13.1% | -6.3% | -2.59% | -6.86% | -8.04% | 4.56% | -5.38% | -8.12% | 11.83% | 16.4% | 10.57% | 7.86% | 21.49% | 65.58% | 4.99% | - | - | - | -100% | 10.78% | - |
| Net Interest Margin % | 1.08% | 1.08% | 1.18% | 1.02% | 0.9% | 0.92% | 1.12% | 1.19% | 1.12% | 1.26% | 1.42% | 1.39% | 1.41% | 1.5% | 1.72% | 1.71% | 1.88% | 1.91% | 1.83% | 1.99% | 2.23% | 2.43% | 2.29% | 1.89% | 1.97% | 0% | 0% | 0% | 2.33% | 2.46% |
| Interest Income | 98.1B | 108.63B | 100.87B | 52.83B | 36.19B | 41.76B | 54.7B | 49.61B | 40.99B | 42.41B | 48.96B | 52.86B | 53.24B | 59.38B | 66.23B | 60.88B | 65.72B | 97.01B | 97.73B | 78.48B | 62.3B | 50.47B | 39.97B | 28.59B | 35.26B | 0 | 0 | 0 | 28.92B | 24.48B |
| Interest Expense | 63.23B | 75.9B | 65.07B | 22.45B | 9.7B | 14.18B | 24.23B | 19.12B | 12.82B | 12.6B | 14.66B | 16.25B | 15.65B | 19.03B | 22.34B | 18.9B | 21.37B | 48.74B | 54.56B | 41.39B | 28.76B | 19.37B | 14.37B | 13.13B | 20.54B | 0 | 0 | 0 | 17.88B | 14.51B |
| Loan Loss Provision | 3.86B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 49.76B | 34.66B | 28.64B | 23.34B | 37.76B | 35.7B | 39.94B | 33.14B | 35.5B | 32.16B | 38.21B | 37.77B | 37.32B | 34.4B | 38.63B | 36.95B | 31.88B | 36.36B | 43.08B | 32.15B | 27.42B | 24.71B | 16.11B | 11.78B | 12.1B | 0 | 0 | 0 | -8.87B | -8.25B |
| Non-Interest Income % | 33.65% | 24.19% | 22.12% | 30.65% | 51.06% | 46.09% | 42.2% | 40.05% | 46.41% | 43.13% | 43.83% | 41.68% | 41.21% | 36.68% | 36.84% | 37.77% | 32.66% | 27.26% | 30.59% | 29.06% | 30.56% | 32.87% | 28.73% | 29.17% | 25.55% | - | - | - | -44.23% | -50.85% |
| Total Revenue | 147.86B | 143.29B | 129.51B | 76.17B | 73.95B | 77.46B | 94.64B | 82.75B | 76.49B | 74.58B | 87.17B | 90.64B | 90.56B | 93.78B | 104.85B | 97.82B | 97.61B | 133.38B | 140.81B | 110.63B | 89.72B | 75.19B | 56.08B | 40.37B | 47.36B | 0 | 0 | 0 | 20.05B | 16.23B |
| Revenue Growth % | 3.19% | 10.64% | 70.03% | 3% | -4.53% | -18.15% | 14.37% | 8.18% | 2.57% | -14.45% | -3.82% | 0.08% | -3.43% | -10.56% | 7.19% | 0.22% | -26.82% | -5.28% | 27.28% | 23.3% | 19.34% | 34.08% | 38.9% | -14.76% | - | - | - | -100% | 23.57% | - |
| Non-Interest Expense | 50.8B | 35.09B | 34.09B | 36.66B | 45.34B | 54.5B | 57.06B | 43.74B | 46.51B | 54.86B | 53.65B | 55.7B | 52.34B | 54.1B | 60.64B | 59.88B | 69.16B | 75.33B | 62.03B | 47.15B | 40B | 36.87B | 29.81B | 18.46B | 19.85B | 2.45B | 2.39B | 2.37B | -6.04B | -6.03B |
| Efficiency Ratio | 34.36% | 24.49% | 26.32% | 48.13% | 61.32% | 70.36% | 60.29% | 52.86% | 60.8% | 73.57% | 61.54% | 61.46% | 57.8% | 57.69% | 57.83% | 61.21% | 70.86% | 56.48% | 44.06% | 42.62% | 44.58% | 49.04% | 53.16% | 45.74% | 41.9% | - | - | - | -30.14% | -37.17% |
| Operating Income | 29.98B | 32.31B | 30.35B | 17.06B | 18.91B | 8.78B | 13.35B | 19.89B | 17.17B | 7.11B | 18.87B | 18.68B | 22.57B | 20.65B | 21.87B | 19.04B | 7.08B | 9.31B | 24.21B | 22.09B | 20.97B | 18.94B | 11.89B | 8.77B | 6.98B | 13.24B | 12.04B | 10.17B | 8.22B | 7.75B |
| Operating Margin % | 20.27% | 22.55% | 23.43% | 22.4% | 25.57% | 11.33% | 14.1% | 24.04% | 22.44% | 9.54% | 21.64% | 20.61% | 24.92% | 22.02% | 20.86% | 19.46% | 7.25% | 6.98% | 17.19% | 19.96% | 23.37% | 25.19% | 21.21% | 21.73% | 14.74% | - | - | - | 40.98% | 47.74% |
| Operating Income Growth % | -7.22% | 6.46% | 77.91% | -9.77% | 115.4% | -34.24% | -32.9% | 15.86% | 141.38% | -62.3% | 1% | -17.22% | 9.28% | -5.59% | 14.89% | 168.92% | -23.94% | -61.56% | 9.63% | 5.34% | 10.68% | 59.27% | 35.58% | 25.69% | -47.29% | 10.02% | 18.37% | 23.74% | 6.07% | 49.26% |
| Pretax Income | 27.06B | 32.31B | 30.35B | 17.06B | 18.91B | 8.78B | 13.35B | 19.89B | 17.17B | 7.11B | 18.87B | 18.68B | 22.57B | 20.65B | 21.87B | 19.04B | 7.08B | 9.31B | 24.21B | 22.09B | 20.97B | 18.6B | 11.89B | 8.77B | 6.98B | 14.6B | 12.9B | 10.94B | 8.22B | 7.75B |
| Pretax Margin % | 18.3% | 22.55% | 23.43% | 22.4% | 25.57% | 11.33% | 14.1% | 24.04% | 22.44% | 9.54% | 21.64% | 20.61% | 24.92% | 22.02% | 20.86% | 19.46% | 7.25% | 6.98% | 17.19% | 19.96% | 23.37% | 24.73% | 21.21% | 21.73% | 14.74% | - | - | - | 40.98% | 47.74% |
| Income Tax | 6.79B | 7.31B | 5.79B | 809M | 4.21B | 2.68B | 4.64B | 4.87B | 5.29B | 3.67B | 3.77B | 3.98B | 4.76B | 5.32B | 3.93B | 4.85B | 385M | 2.81B | 3.76B | 5.21B | 5.09B | 4.68B | 3.12B | 2.53B | 1.57B | 3.34B | 3.29B | 2.98B | 2.08B | 1.84B |
| Effective Tax Rate % | 25.1% | 22.63% | 19.08% | 4.74% | 22.28% | 30.51% | 34.76% | 24.46% | 30.8% | 51.55% | 19.99% | 21.28% | 21.12% | 25.74% | 17.96% | 25.46% | 5.44% | 30.18% | 15.52% | 23.61% | 24.29% | 25.19% | 26.23% | 28.88% | 22.55% | 22.9% | 25.53% | 27.21% | 25.31% | 23.72% |
| Net Income | 22.34B | 23.98B | 23.53B | 15.56B | 13.92B | 5.23B | 7.38B | 13.73B | 10.8B | 2.48B | 13.52B | 13.69B | 16.2B | 14.03B | 16.8B | 13.16B | 5.83B | 5.73B | 19.13B | 15.79B | 15.08B | 12.92B | 8.77B | 6.24B | 5.41B | 9.9B | 8.74B | 7.19B | 6.14B | 5.91B |
| Net Margin % | 15.11% | 16.73% | 18.17% | 20.43% | 18.82% | 6.75% | 7.8% | 16.59% | 14.12% | 3.32% | 15.51% | 15.1% | 17.89% | 14.96% | 16.02% | 13.45% | 5.98% | 4.29% | 13.59% | 14.27% | 16.81% | 17.18% | 15.65% | 15.45% | 11.41% | - | - | - | 30.61% | 36.42% |
| Net Income Growth % | -6.85% | 1.9% | 51.25% | 11.8% | 166.15% | -29.18% | -46.22% | 27.13% | 335.58% | -81.67% | -1.21% | -15.53% | 15.52% | -16.49% | 27.65% | 125.56% | 1.85% | -70.06% | 21.18% | 4.69% | 16.74% | 47.23% | 40.63% | 15.41% | -45.39% | 13.24% | 21.56% | 17.16% | 3.86% | 55.35% |
| Net Income (Continuing) | 20.27B | 25B | 24.56B | 16.25B | 14.69B | 6.1B | 8.71B | 15.03B | 11.88B | 3.45B | 15.1B | 14.71B | 15.47B | 11.78B | 17.94B | 14.19B | 6.69B | 6.5B | 20.45B | 16.87B | 15.87B | 13.93B | 8.77B | 6.24B | 5.41B | 9.9B | 8.74B | 7.19B | 6.73B | 6.49B |
| EPS (Diluted) | 6.05 | 6.20 | 5.70 | 3.60 | 3.10 | 0.95 | 1.50 | 3.15 | 2.40 | 0.35 | 3.20 | 3.45 | 4.20 | 3.70 | 4.55 | 3.60 | 1.70 | 1.80 | 7.10 | 6.05 | 5.90 | 5.10 | 2.35 | 2.90 | 2.30 | 2.65 | 2.35 | 1.95 | 3.00 | 2.95 |
| EPS Growth % | -2.42% | 8.77% | 58.33% | 16.13% | 226.32% | -36.67% | -52.38% | 31.25% | 585.71% | -89.06% | -7.25% | -17.86% | 13.51% | -18.68% | 26.39% | 111.76% | -5.56% | -74.65% | 17.36% | 2.54% | 15.69% | 117.02% | -18.97% | 26.09% | -13.21% | 12.77% | 20.51% | -35% | 1.69% | 195% |
| EPS (Basic) | 6.05 | 6.25 | 5.75 | 3.60 | 3.10 | 0.95 | 1.50 | 3.15 | 2.40 | 0.35 | 3.25 | 3.45 | 4.20 | 3.70 | 4.60 | 3.65 | 1.70 | 1.80 | 7.20 | 6.10 | 5.95 | 5.15 | 2.35 | 2.90 | 2.35 | 2.65 | 2.35 | 1.95 | 3.00 | 2.95 |
| Diluted Shares Outstanding | 3.51B | 3.7B | 3.92B | 4B | 4.06B | 4.05B | 4.05B | 4B | 4.01B | 3.97B | 3.9B | 3.81B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B | 3.73B |
Geopolitical and credit exposure
As reported in recent financial statements, HSBC's net interest income demonstrated significant quarterly variance, reaching $9.2 billion in 2025Q4, which reflects a 12.4% growth rate despite the structural challenges of managing a global deposit base across divergent interest rate environments in Hong Kong and the West.
The fluctuation in NII suggests that the bank remains highly sensitive to shifts in the HIBOR-LIBOR spread and broader global liquidity conditions. Investors should monitor whether the recent growth trajectory can be sustained without relying on volatile transactional interest income, as the bank navigates the complexities of its international funding model.
Based on the provided income statement data, HSBC's efficiency ratio fluctuated significantly, reaching 21.7% in 2025Q4, which indicates that the bank's massive global regulatory and physical infrastructure continues to exert substantial pressure on its ability to maintain consistent operating leverage across its diverse geographic segments.
The wide variance in the efficiency ratio suggests that management's efforts to simplify the business model are frequently offset by the high fixed costs inherent in a universal banking structure. This volatility warrants further investigation into whether the bank can achieve permanent cost-base reductions or if structural complexity will continue to hinder margin expansion.
According to the latest quarterly figures, non-interest fee income contributed $3.7 billion in 2025Q4, representing 13.2% of total revenue, which highlights the bank's ongoing strategic pivot toward capital-light wealth management services to diversify its earnings stream away from pure interest-rate-dependent lending activities.
The composition of fee income appears to be a critical stabilizer for the bank's P&L, particularly as it seeks to capture regional capital flows in Asia. However, the reliance on transactional FX and trade services suggests that fee growth remains tethered to global trade volumes, which may be susceptible to future geopolitical friction.
Based on reported figures, the bank's net income experienced extreme swings, including a low of -$28 million in 2023Q4 and a high of $10.6 billion in 2024Q1, suggesting that headline earnings are frequently distorted by notable items and the subjective application of IFRS 9 provisioning standards.
The inconsistency in bottom-line performance implies that investors should look past headline EPS to evaluate the underlying PPNR trends. The lack of provision expense in recent quarters may indicate a period of stability, but it also raises questions about the adequacy of reserves against potential long-term exposure to the Chinese commercial real estate sector.
Quick answers to the most common questions about buying HSBC stock.
HSBC Holdings plc (HSBC) is profitable, generating $22.34B in net income for the fiscal year ending 2025 with a net profit margin of 15.1%.
HSBC Holdings plc (HSBC) reported an operating income of $29.98B, resulting in an operating profit margin of 20.3%. This margin reflects the operational efficiency of the business before interest and taxes.
HSBC Holdings plc (HSBC) generated $80.78B in gross profit for the year, representing a gross profit margin of 54.6%. This demonstrates the company's core pricing power and production efficiency.