v3.25.2
Segmental analysis
 6 Months Ended
Jun. 30, 2025
Operating Segments [Abstract]  
Segmental analysis 5Segmental analysis
The Group Operating Committee is considered to be the Chief Operating Decision Maker (‘CODM’) for the purposes of identifying the Group‘s
reportable segments. Business segments results are assessed by the CODM on the basis of constant currency performance that removes the
effects of currency translation from reported results. Therefore, we disclose these results on a constant currency basis as required by IFRS
Accounting Standards. The income statement for the half-year to 30 June 2024 is converted at the average rate of exchange for 2025, and the
balance sheets at 30 June 2024 and 31 December 2024 at the prevailing rates of exchange on 30 June 2025.
Our operations are closely integrated and, accordingly, the presentation of data includes internal allocations of certain items of income and
expense. These allocations include the costs of certain support services and global infrastructures to the extent that they can be meaningfully
attributed to business segments. While such allocations have been made on a systematic and consistent basis, they necessarily involve a
degree of subjectivity. Costs that are not allocated to business segments are included in Corporate Centre.
Where relevant, income and expense amounts presented include the results of inter-segment funding along with inter-company and inter-
business line transactions. All such transactions are undertaken on arm’s length terms. Measurement of segmental assets, liabilities, income
and expenses is in accordance with the Group’s accounting policies. Shared costs are included in segments on the basis of actual recharges.
The intra-Group elimination items for the business segments are presented in Corporate Centre.
Our business segments
Following our organisational announcement in October 2024, effective from 1 January 2025, the Group’s reportable segments under IFRS 8
‘Operating Segments’ comprise four businesses along with Corporate Centre. These replace our previously reported operating segments up to
31 December 2024.
–Hong Kong: The Hong Kong business comprises Retail Banking and Wealth and Commercial Banking of HSBC Hong Kong and Hang Seng
Bank.
–UK: The UK business comprises UK Personal Banking (including first direct and M&S Bank) and UK Commercial Banking including HSBC
Innovation Bank.
–Corporate and Institutional Banking (‘CIB’): CIB is formed from the integration of our Commercial Banking business (outside the UK and Hong
Kong) with our Global Banking and Markets business.
–International Wealth and Premier Banking (‘IWPB’): IWPB comprises Premier banking outside of Hong Kong and the UK, our Private Bank,
and our wealth manufacturing businesses of Asset Management and Insurance.
HSBC constant currency profit before tax and balance sheet data
Half-year to 30 Jun 2025
Hong
Kong
UK
CIB
IWPB
Corporate
Centre
Total
$m
$m
$m
$m
$m
$m
Net operating income/(expense) before change in expected credit
losses and other credit impairment charges1,2
7,848
6,228
14,117
7,011
(1,082)
34,122
–  external
5,037
6,678
19,648
5,964
(3,205)
34,122
–  inter-segment
2,811
(450)
(5,531)
1,047
2,123
—
–  of which: net interest income/(expense)3
5,875
5,306
7,014
3,657
(5,031)
16,821
Change in expected credit losses and other credit impairment charges
(864)
(323)
(299)
(453)
(2)
(1,941)
Net operating income/(expense)
6,984
5,905
13,818
6,558
(1,084)
32,181
Total operating expenses
(2,310)
(2,624)
(7,456)
(4,468)
(164)
(17,022)
Operating profit/(loss)
4,674
3,281
6,362
2,090
(1,248)
15,159
Share of profit in associates and joint ventures less impairment2
—
—
—
2
649
651
Constant currency profit/(loss) before tax
4,674
3,281
6,362
2,092
(599)
15,810
%
%
%
%
%
%
Share of HSBC’s constant currency profit/(loss) before tax
29.6
20.8
40.2
13.2
(3.8)
100.0
Constant currency cost efficiency ratio
29.4
42.1
52.8
63.7
(15.2)
49.9
Constant currency balance sheet data
$m
$m
$m
$m
$m
$m
Loans and advances to customers (net)
230,139
299,631
304,240
147,523
189
981,722
Interests in associates and joint ventures
—
—
116
526
27,560
28,202
Total external assets
433,153
443,023
1,763,915
435,437
138,843
3,214,371
Customer accounts
517,406
360,494
564,847
275,504
353
1,718,604
Half-year to 30 Jun 20244
Net operating income before change in expected credit losses and other
credit impairment charges1
7,432
5,994
13,333
6,933
3,365
37,057
–  external
4,769
6,280
19,696
5,689
623
37,057
–  inter-segment
2,663
(286)
(6,363)
1,244
2,742
—
–  of which: net interest income/(expense)3
5,928
5,026
7,314
4,131
(5,865)
16,534
Change in expected credit losses and other credit impairment charges
(338)
(58)
(175)
(416)
(6)
(993)
Net operating income
7,094
5,936
13,158
6,517
3,359
36,064
Total operating expenses
(2,340)
(2,403)
(7,037)
(4,277)
(135)
(16,192)
Operating profit
4,754
3,533
6,121
2,240
3,224
19,872
Share of profit in associates and joint ventures
—
—
—
27
1,592
1,619
Constant currency profit before tax
4,754
3,533
6,121
2,267
4,816
21,491
%
%
%
%
%
%
Share of HSBC’s constant currency profit before tax
22.1
16.4
28.5
10.6
22.4
100.0
Constant currency cost efficiency ratio
31.5
40.1
52.8
61.7
4.0
43.7
Constant currency balance sheet data
$m
$m
$m
$m
$m
$m
Loans and advances to customers (net)
236,309
286,915
300,392
140,795
8,368
972,779
Interests in associates and joint ventures
—
—
132
561
28,047
28,740
Total external assets
413,491
428,708
1,702,163
399,795
140,213
3,084,370
Customer accounts
474,140
352,573
558,629
266,148
421
1,651,911
1Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.
2Amount in ‘Net operating income before change in expected credit losses and other credit impairment charges’ includes a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the
carrying value of the Group’s investment in BoCom in ‘Share of profit in associates and joint ventures less impairment’. See Note 10 on page 93.
3Net interest expense recognised in the Corporate Centre includes 1H25: $4.7bn (1H24: $5.5bn) of interest expense in relation to the internal cost to fund trading
and fair value net assets; and the funding cost of foreign exchange swaps in our Markets Treasury function.
4Comparative information for the prior year has been re-presented to reflect the Group’s revised segment structure, which became effective on 1 January 2025.
Reported external net operating income is attributed to countries and territories on the basis of the location of the branch responsible for
reporting the results or advancing the funds:
Half-year to
30 Jun 2025
30 Jun 2024
$m
$m
Reported external net operating income by country/territory
34,122
37,292
–  UK1
6,270
6,247
–  Hong Kong
11,490
10,393
–  US
2,313
2,146
–  Mainland China
67
1,246
–  other countries/territories
13,982
17,260
1UK includes HSBC UK Bank plc (ring-fenced bank), HSBC Bank plc (non-ring-fenced bank), the ultimate holding company, HSBC Holdings plc, and the ServCo
group.
Constant currency results reconciliation
30 Jun 2025
30 Jun 2024
Reported and
constant currency
Constant
currency
Currency
translation
Reported
$m
$m
$m
$m
Revenue1,2
34,122
37,057
(235)
37,292
ECL
(1,941)
(993)
73
(1,066)
Operating expenses
(17,022)
(16,192)
104
(16,296)
Share of profit in associates and joint ventures less impairment2
651
1,619
(7)
1,626
Profit before tax
15,810
21,491
(65)
21,556
1Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.
2Amount in 1H25 in ‘Revenue’ includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We have also
recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group’s investment in BoCom in ‘Share of profit in associates and
joint ventures less impairment’. See Note 10 on page 93.
Constant currency balance sheet reconciliation
At 30 Jun 2025
At 30 Jun 2024
At 31 Dec 2024
Reported and
constant currency
Constant
currency
Currency
translation
Reported
Constant
currency
Currency
translation
Reported
$m
$m
$m
$m
$m
$m
$m
Loans and advances to customers (net)
981,722
972,779
34,522
938,257
974,647
43,989
930,658
Interests in associates and joint ventures
28,202
28,740
275
28,465
29,273
364
28,909
Total external assets
3,214,371
3,084,370
109,367
2,975,003
3,152,674
135,626
3,017,048
Customer accounts
1,718,604
1,651,911
58,077
1,593,834
1,726,199
71,244
1,654,955
Notable items
Half-year to
30 Jun 2025
30 Jun 2024
$m
$m
Revenue
Disposals, wind-downs, acquisitions and related costs1
(139)
3,571
Dilution loss of interest in BoCom associate2
(1,136)
—
Operating expenses
Disposals, wind-downs, acquisitions and related costs
(227)
(101)
Restructuring and other related costs3
(616)
19
Impairment losses of interest in BoCom associate2
(1,000)
—
1Amount in 1H25 include fair value losses on ADRs in Galicia received as a part of the sale consideration for HSBC Argentina, which were sold in 2Q25. Amount
in 1H24 includes a $4.8bn gain on disposal of our banking business in Canada, inclusive of a $0.3bn gain on the foreign exchange hedging of the sale proceeds,
the recycling of $0.6bn in foreign currency translation reserve losses and $0.4bn of other reserves recycling losses. This was partly offset by a $1.2bn
impairment recognised in relation to the sale of our business in Argentina.
2Amount in 1H25 in ‘Dilution loss of interest in BoCom associate’ include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our
shareholding in BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group’s investment in
BoCom in ‘Impairment losses of interest in BoCom associate’. See Note 10 on page 93.
3Amounts relate to restructuring provisions recognised in 2025 as well as reversals of restructuring provisions recognised during 2022.