HSBC posts $29.9bn profit, 4% sales rise, cuts payroll
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- HSBC reported annual pre‑tax profit of $29.91 bn, beating consensus $28.86 bn, despite a 7.4% YoY decline.
- HSBC's revenue grew 4% YoY to $68.27 bn, surpassing consensus $67.36 bn.
- HSBC's fourth‑quarter profit before tax rose to $6.8 bn, up $4.5 bn YoY, driven by one‑off disposals.
- HSBC's operating expenses rose 8% to $9.3 bn, due to restructuring, tech investment, and higher performance‑related pay.
- Georges Elhedery said the bank targets a RoTE of 17%+ from 2026‑28, up from 13.3% in 2025.
- Hang Seng Bank's privatization was completed on Jan 26, with expectations of revenue and cost synergies that will materialise gradually.
- HSBC plans an about 8% payroll cost reduction and may cut bonuses for underperformers, aiming to simplify the group and remove duplicate roles, including a 15% cut in managing director positions.
Why it matters: Shareholders see a modest profit beat but face lower earnings growth as HSBC trims costs, targeting payroll cuts and tighter bonuses that will squeeze staff compensation while aiming to boost return on equity. The bank’s cost‑saving drive benefits investors but pressures employees.
