HSBC Holdings plc Revenue in 2025

HSBC Holdings plc reported $68.3B in revenue for fiscal year 2025. This represents a growth of 3.7% compared to the 2024 figure of $65.9B.

The number that tells HSBC's real story isn't the $68.3 billion revenue figure — it's the gap between FY2020 revenue ($50.4 billion) and FY2025 revenue ($68.3 billion). That's $18 billion in additional annual revenue gained largely without acquiring new businesses or entering new markets. The explanation is almost entirely interest rates. HSBC's massive deposit base — $1.6 trillion, much of it in non-interest-bearing current accounts — became a profit machine when central banks hiked rates aggressively starting in 2022. The bank was essentially earning 4-5% on funds that cost it close to zero. Pre-tax profit of $29.9 billion in FY2025 represents a return on tangible equity above 15%, which is exceptional for a European-headquartered bank. For context, most European banks consider 10% a good year. But investors are rightly asking: how much of this is structural versus cyclical? If rates fall 200 basis points over the next two years, net interest income could decline by $5-8 billion annually. The bank's own guidance acknowledges this sensitivity. The market cap of approximately $160 billion implies the market is pricing in some normalization but still values the franchise at roughly 1x tangible book value — a significant re-rating from the 0.5-0.7x levels that prevailed during the low-rate era of 2015-2021. Net income of $23.1 billion makes HSBC one of the most profitable banks in the world by absolute dollars, trailing only JPMorgan Chase among Western institutions.