HSBC profit falls but shares gain on outlook for stronger returns and stable dividends

South China Morning PostEN 1 min read 100% complete by Enoch YiuFebruary 25, 2026 at 05:32 AM

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HSBC Holdings reported a 7% decrease in pre-tax profit for 2025, falling to $29.9 billion due to legal provisions, losses related to Bank of Communications, restructuring costs, and bad debt. Despite the profit decline, which was anticipated by analysts, HSBC's shares rose on Wednesday following the announcement. The bank outlined goals for stronger returns and a sustainable dividend policy looking ahead to 2026. HSBC will pay a final dividend of 45 US cents per share, bringing the total annual payout to 75 US cents. As expected, the bank did not announce any share buy-backs.

Key Entities & Roles

Key Player Opposition Context

Europe 40% Bernard Madoff 60% Bank of Communications 60% Hang Seng Bank ×270% Hong Kong ×380% HSBC Holdings ×495%

Keywords

stable dividends 90% profit decline 80% stronger returns 70% investor confidence 60% banking group 60% share buy-backs 50% legal provisions 50% commercial real estate 40% restructuring costs 40%