v3.26.1
Business Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments Business Segments
We have three distinct business segments that we utilize for management reporting and analysis purposes, which are aligned with HSBC's business strategy: International Wealth and Premier Banking ("IWPB"), Corporate and Institutional Banking ("CIB") and a Corporate Center ("CC"). There have been no changes in the basis of our segmentation compared with the presentation in our 2025 Form 10-K.
Our segment results are presented in accordance with HSBC Group accounting and reporting policies, which apply IFRSs as issued by the IASB. As a result, our segment results are prepared and presented using financial information prepared on the Group Reporting Basis. We continue, however, to monitor capital adequacy and report to regulatory agencies on a U.S. GAAP basis. Our Chief Executive Officer, who is the chief operating decision maker, primarily uses segment profit (loss) before tax under the Group Reporting Basis in monitoring and assessing segment performance, evaluating trends, and deciding how to allocate resources, such as employees.
See Note 21, "Business Segments," in our 2025 Form 10-K for further discussion of the measurement of segment profit, including a description of our segment expense categories, as well as a summary of significant differences between U.S. GAAP and the Group Reporting Basis as they impact our results. There have been no significant changes since December 31, 2025 in the measurement of segment profit or the differences between U.S. GAAP and the Group Reporting Basis impacting our results.
The following table summarizes the results for each segment on a Group Reporting Basis, as well as provides a reconciliation of total results under the Group Reporting Basis to U.S. GAAP consolidated totals:
Group Reporting Basis Consolidated Amounts
IWPBCIBCCTotal
Group Reporting Basis
Adjust-
ments(1)
Group Reporting Basis
Reclassi-
fications(2)
U.S. GAAP
Consolidated
Totals
(in millions)
Three Months Ended June 30, 2026
Net interest income (expense)$172 $481 $(124)$529 $6 $14 $549 
Other operating income62 433 120 615 (2)(1)612 
Total operating income (expense)234 914 (4)1,144 4 13 1,161 
Expected credit losses / provision for credit losses1 (9)— (8)(30)— (38)
233 923 (4)1,152 34 13 1,199 
Operating expenses:
Direct Costs90 86 28 204 N/AN/AN/A
Indirect Costs92 336 48 476 N/AN/AN/A
Total operating expenses182 422 76 680 10 13 703 
Profit (loss) before income tax$51 $501 $(80)$472 $24 $— $496 
Three Months Ended June 30, 2025
Net interest income (expense)$188 $460 $(85)$563 $6 $(46)$523 
Other operating income64 313 85 462 — 56 518 
Total operating income252 773 — 1,025 6 10 1,041 
Expected credit losses / provision for credit losses1 63 — 64 (22)— 42 
251 710 — 961 28 10 999 
Operating expenses:
Direct Costs106 115 13 234 N/AN/AN/A
Indirect Costs97 327 29 453 N/AN/AN/A
Total operating expenses203 442 42 687 (1)10 696 
Profit (loss) before income tax$48 $268 $(42)$274 $29 $— $303 
Group Reporting Basis Consolidated Amounts
IWPBCIBCCTotal
Group Reporting Basis
Adjust-
ments(1)
Group Reporting Basis
Reclassi-
fications(2)
U.S. GAAP
Consolidated
Totals
(in millions)
Six Months Ended June 30, 2026
Net interest income (expense)$362 $966 $(258)$1,070 $11 $20 $1,101 
Other operating income128 780 251 1,159 (9)6 1,156 
Total operating income (expense)490 1,746 (7)2,229 2 26 2,257 
Expected credit losses / provision for credit losses3 25 — 28 (18)— 10 
487 1,721 (7)2,201 20 26 2,247 
Operating expenses:
Direct Costs174 174 54 402 N/AN/AN/A
Indirect Costs194 670 65 929 N/AN/AN/A
Total operating expenses368 844 119 1,331 15 26 1,372 
Profit (loss) before income tax$119 $877 $(126)$870 $5 $— $875 
Balances at end of period:
Total assets$33,991 $159,053 $3,581 $196,625 $(15,917)$— $180,708 
Total loans, net24,918 35,715 — 60,633 59 988 61,680 
Goodwill— 358 — 358 100 — 458 
Total deposits25,424 97,034 — 122,458 (2,693)7,048 126,813 
Six Months Ended June 30, 2025
Net interest income (expense)$374 $933 $(185)$1,122 $12 $(85)$1,049 
Other operating income115 636 181 932 (3)105 1,034 
Total operating income (expense)489 1,569 (4)2,054 9 20 2,083 
Expected credit losses / provision for credit losses3 147 — 150 10 — 160 
486 1,422 (4)1,904 (1)20 1,923 
Operating expenses:
Direct Costs192 225 55 472 N/AN/AN/A
Indirect Costs196 640 19 855 N/AN/AN/A
Total operating expenses388 865 74 1,327 9 20 1,356 
Profit (loss) before income tax$98 $557 $(78)$577 $(10)$— $567 
Balances at end of period:
Total assets$38,525 $151,215 $4,243 $193,983 $(17,616)$— $176,367 
Total loans, net27,369 34,566 — 61,935 (1,684)3,334 63,585 
Goodwill— 358 — 358 100 — 458 
Total deposits27,247 91,520 — 118,767 (1,598)9,012 126,181 
N/A Not Applicable
(1)Represents adjustments associated with differences between U.S. GAAP and the Group Reporting Basis.
(2)Represents differences in financial statement presentation between U.S. GAAP and the Group Reporting Basis.