HSBC Holdings, Plc. (NYSE:HSBC) stock rose Wednesday after the company reported fourth-quarter fiscal 2025 results.
Earnings Snapshot
Revenue increased 42% year over year (Y/Y) to $16.4 billion, led by growth in banking net interest income (NII) along with higher fee and other income from Wealth. However, the topline fell short of the Street’s estimate of $17.103 billion.
Constant currency revenue, excluding notable items, increased 6% Y/Y to $17.7 billion in the quarter.
Banking NII rose 5.4% Y/Y to $11.7 billion from $11.1 billion in the quarter.
Customer loans stood at $988 billion, and deposits came in at $1.79 trillion. At the end of the quarter, the CET1 ratio was 14.9%.
The company’s expected credit losses (ECL) fell to $900 million.
Adjusted EPS of 37 cents beat the consensus of 32 cents.
Georges Elhedery, Group CEO, stated, “2025 marked a year of decisive action and swift execution. We are performing, transforming and investing for growth as demand for globally-connected financial services increases, especially in the world’s fastest-growing regions.”
Outlook
For fiscal 2026, HSBC sees banking NII of at least $45 billion and ECL charges as a percentage of average gross loans of around 40bps.
The company projects the CET1 capital ratio within the medium-term target range of 14%–14.5%.
Also, the bank is targeting a RoTE of 17% or better for 2026, 2027, and 2028, excluding notable items.
Also, the company anticipates Y/Y revenue growth from 2026 to 2028, rising to 5% growth in 2028 compared with 2027, excluding notable items and on a constant currency basis.
HSBC Price Action: HSBC Holdings shares were up 4.69% at $92.00 during premarket trading on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Photo by TungCheung via Shutterstock
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