Yesterday, London-headquartered HSBC posted financial results for the second quarter of 2025, showing a sharp decline in profit before tax.

HSBC's pre-tax profits fell by 29 per cent in the second quarter of 2025 year-on-year to $6.33 billion, as the bank took a charge on its stake in a Chinese bank and increased costs by making staff redundant. This result fell short of market expectations.

The bank, which makes much of its profits in Asia, recorded a $2.1 billion impairment on its stake in China’s Bank of Communications. Revenue also showed a decline year-on-year.

The bank’s four businesses – Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking – sustained momentum in their earnings. The bank also saw strong performances in its wealth business, foreign exchange and debt and equity markets which boosted revenue.

HSBC approved a second interim dividend of $0.10 per share, contributing to a 5.16 per cent dividend yield, and a $3 billion share buyback programme, which it expects to complete by its third quarter 2025 results. There was an annualised return on average tangible equity (RoTE) of 14.7 per cent, or 18.2 per cent excluding notable items, the bank continued. The stock price fell by more than 4 per cent on Wednesday, reflecting broader market trends.

HSBC is also expanding its digital transformation and artificial intelligence capabilities.

“In the first half, we continued to execute our strategy with discipline and each of our four businesses sustained momentum in their earnings, with each growing revenue. This gives us confidence in our ability to deliver our targets,” Georges Elhedery, HSBC Group CEO, said. “We continue to navigate this period of economic uncertainty and market volatility from a position of strength, putting the changing needs of our customers at the heart of everything we do.”

“We are seeing continued momentum in our wealth business. We are ideally placed to capture the increasing number of affluent and high net worth customers in the fastest-growing wealth markets in Asia and the Middle East,” Elhedery said.