London, United Kingdom — HSBC’s first-quarter results for 2025 surpassed expectations, driven by strong performances in its wealth management and corporate banking segments. The British multinational bank reported a pre-tax profit of $9.48 billion, significantly higher than analysts’ forecasts of $7.83 billion. Revenue also outperformed predictions, coming in at $17.65 billion compared to an anticipated $16.67 billion.
Despite these impressive figures, HSBC’s profit before tax marked a decline of 25% year-over-year, and revenue dipped 15% compared to the previous year. However, the bank saw a remarkable 317% increase in pre-tax profit from the prior quarter, showcasing a robust recovery. “These results indicate our earnings momentum and effective strategy execution, reinforcing our commitment to achieving our targets,” said Georges Elhedery, CEO of HSBC Group.
The bank announced a share buyback plan, committing to repurchase up to $3 billion in shares before reporting its interim results in 2025. This move exceeded the market’s expectations and reflects HSBC’s confidence in its financial stability despite increasing global uncertainties.
HSBC has cautioned about the volatile macroeconomic environment, emphasizing the negative effects of protectionist trade policies on market sentiment. Manyi Lu, an equity research analyst at DBS Bank, noted that the impact of ongoing tariffs and concerns over a potential global recession could pose challenges in the coming quarters. “The restructuring efforts at HSBC could yield cost savings,” Lu added, though she urged investors to monitor how tariff changes might influence future guidance.
This quarter’s performance does not fully account for the implications of recent tariffs imposed by the U.S., as reciprocal levies announced earlier have been suspended. However, tariffs on steel, aluminum, and automobiles remain in effect. Analysts caution that the extent of their impact on HSBC’s operations will become clearer in the near future, particularly regarding trade with ASEAN countries after a 90-day grace period.
In a related development, HSBC’s recent successes prompted greater scrutiny of the UK’s banking regulations, specifically the ring-fencing rules that separate consumer banking from more speculative investment activities. Elhedery, along with three other UK bank leaders, has advocated for a review of these policies, seeking to streamline operations and enhance the banking sector’s competitiveness.
Last year, HSBC outlined a comprehensive restructuring plan designed to divide its business into distinct divisions focused on Eastern and Western markets. This initiative is projected to generate approximately $300 million in cost reductions this year, although the bank also anticipates upfront expenses of $1.8 billion over the next two years.
In response to the favorable earnings report, HSBC shares rose by 1.5% in Hong Kong trading, reflecting investor optimism about the bank’s strategic direction and potential for future growth. With significant challenges on the horizon, HSBC remains focused on navigating the complex landscape while aiming to deliver value to its shareholders.