HSBC has unveiled its financial results for the full year 2025, revealing a 7.4% decline in profit, yet its shares have soared to record highs. This juxtaposition underscores an intriguing narrative developing primarily in Hong Kong, with ambitions now extending globally.
The banking giant reported a pretax profit of $29.9 billion, down from $32.3 billion in 2024, largely attributed to significant items including $2.1 billion in losses related to BoCom, $1.4 billion in legal provisions, and $1 billion in restructuring costs. Excluding these factors, HSBC”s performance exceeded its own forecasts, with shares reflecting investor confidence in its future.
CEO Georges Elhedery has set ambitious targets, aiming for a 17% return on tangible equity (RoTE) for 2026, 2027, and 2028, alongside a revenue growth target of 5% by 2028. The board also approved a substantial dividend payout of approximately $7.71 billion, showcasing a commitment to shareholders.
Notably, HSBC”s strategy is increasingly focused on two core areas: its robust presence in Hong Kong and the burgeoning digital assets market. The bank”s operations in Hong Kong generated $15.9 billion in revenue for 2025, reflecting a 6% year-on-year increase, with a deposit base exceeding $540 billion, solidifying its dominance in the region.
Hong Kong is positioning itself as a leading hub for digital assets, and HSBC is at the forefront of this transition. The close relationship between regulatory frameworks and banking strategies has evolved significantly since 2023, particularly with the Hong Kong Monetary Authority”s (HKMA) Project Ensemble, which is now in its pilot phase as EnsembleX. HSBC was the first to successfully complete a cross-bank tokenized deposit transaction, underscoring its pioneering role in this innovative landscape.
John O”Neill, HSBC”s Group Head of Digital Assets and Currencies, is pivotal in driving the bank”s digital asset initiatives. He has emphasized the importance of digital assets, stating they are becoming a mainstream topic due to client demand. O”Neill predicts 2025 will mark the transition from pilot projects to a period of increased liquidity in 2026.
HSBC”s digital assets platform, known as HSBC Orion, has already facilitated over $3.5 billion in digitally native bonds across various sectors, including sovereign and corporate. The platform”s client roster features significant players such as the Hong Kong government and the European Investment Bank.
In addition to bonds, HSBC has launched the HSBC Gold Token, allowing investors to own tokenized gold, which has seen trading volumes surpassing $1 billion since its introduction. This move positions HSBC as a pioneer, being the first bank to offer tokenized ownership of physical gold.
HSBC”s commitment to compliance is underscored by its investment in Elliptic, a blockchain analytics firm, to ensure safe and scalable adoption of digital assets and maintain robust anti-money laundering (AML) practices.
Looking ahead, HSBC is expanding its tokenized deposit offerings across multiple regions, including the US and UAE, while processing transactions in several currencies. The bank”s strategic alignment with regulatory developments could create a significant competitive advantage.
As HSBC aims to achieve banking net interest income of at least $45 billion in 2026, the focus on digital assets will be crucial. While challenges remain, particularly regarding regulatory coherence, HSBC”s early positioning in the digital asset arena could establish it as a leader in the next phase of institutional finance.
