HSBC (HSBA) investor relations material

Executive summary

• Annualized return on tangible equity (RoTE) excluding notable items reached 18.7%, the highest in nearly 20 years, with all four business segments delivering RoTE above 17%.

• Revenue excluding notable items rose 4% year-over-year to $19.1bn, while profit before tax excluding notable items was $10.1bn.

• Achieved broad-based revenue growth, with all segments contributing and continued disciplined simplification, including privatization of Hang Seng Bank and several business disposals.

• Guidance for FY26 banking net interest income (NII) was raised to ~$46bn, reflecting an improved interest rate outlook.

• Notable items included losses from Malta and UK life insurance disposals and restructuring costs.

Financial highlights

• Revenue excluding notable items increased 4% year-over-year to $19.1bn, driven by banking NII and strong wealth fee growth.

• Banking NII rose to $11.3bn, up $0.3bn year-over-year, but fell sequentially due to day count and one-offs.

• CET1 capital ratio declined to 14.0%, down from 14.9% sequentially, impacted by strategic initiatives.

• Dividend per share was $0.10; targeting a 50% payout ratio for 2026 EPS, excluding notable items.

• EPS excluding material notable items rose to $0.44 from $0.39 year-over-year.

Outlook and guidance

• FY26 banking NII guidance raised to ~$46bn, reflecting improved but volatile rate outlook.

• FY26 ECL charge guidance updated to ~45bps, reflecting macro uncertainty and ongoing risks.

• Cost growth target of ~1% in 2026 vs. 2025, with simplification savings expected to accumulate in H2.

• CET1 ratio to be managed within a 14%-14.5% medium-term range.

• RoTE target of 17% or better, excluding notable items, reiterated for 2026-2028.