HSBC Reports Resilient Q3 2025 Profits Amid Legal Challenges
London, Tuesday, 28 October 2025.
HSBC’s Q3 2025 profits reached $7.3 billion despite $1.4 billion in legal charges. The results highlight strong net interest income and a thriving Wealth Management division, showcasing strategic execution.
Financial Performance Amid Legal Provisions
HSBC Holdings plc (HSBC) reported a profit before tax of $7.3 billion for the third quarter of 2025, despite incurring substantial legal charges amounting to $1.4 billion. This figure represents a 14% decrease from the previous year, primarily driven by litigation costs associated with the Madoff case and French tax investigations, which accounted for $1.1 billion and $300 million, respectively [1][2].
Strategic Execution and Revenue Growth
The bank’s revenue for Q3 2025 increased to $17.8 billion, reflecting a 5% rise compared to the same quarter in 2024. This growth was attributed to a significant boost in banking net interest income, which rose by 15% to $8.8 billion, driven by deposit growth and favorable policy rates [1][3]. The Wealth Management division also played a crucial role, contributing to the overall revenue increase [2].
Return on Tangible Equity and Strategic Initiatives
HSBC’s annualized return on average tangible equity (RoTE) was recorded at 12.3% for the third quarter of 2025, down from 15.5% in the previous year. However, excluding notable items, RoTE improved to 16.4%, up by 0.5 percentage points, indicating the bank’s strong underlying performance [1][3]. The Group CEO, Georges Elhedery, highlighted the bank’s strategic focus on becoming a more agile and focused institution, which is evident in its robust performance despite the legal challenges faced [1].
Future Outlook and Strategic Moves
Looking ahead, HSBC has upgraded its guidance for the fiscal year 2025, expecting a mid-teens or better RoTE, excluding notable items. The bank’s strategic initiatives include the proposed privatization of Hang Seng Bank and a temporary halt on share buy-backs to strengthen its CET1 capital ratio [1][3]. Additionally, HSBC’s investment in the open banking platform Token.io reflects its commitment to digital transformation and expanding its footprint in the digital banking space [1][3].