Barclays vs HSBC: Revenue, Profit and Business Model
Barclays reported ~$35.4B of revenue in FY2025 and ~$8.2B of net income. HSBC reported $68.3B of revenue in FY2025 and $21.1B of net income.
Latest financial snapshot
Financial summary
Barclays
Barclays' financial narrative has been defined by a severe, decade-long internal struggle over its identity. The UK retail bank is a steady cash cow, generating highly reliable profits. However, the investment banking division (which requires large capital reserves to satisfy regulators) is highly volatile; it prints money during market booms but can suffer large losses during downturns. For years, activist investors have pressured Barclays' management to shrink or sell the investment bank, arguing that its volatile earnings are dragging down the valuation of the highly profitable retail business.
HSBC
HSBC reported FY2025 revenue of $68.3 billion, up 4%, with net interest income of $34.8 billion and a net interest margin of 1.59%. Reported profit before tax fell to $29.9 billion from $32.3 billion because of $4.9 billion of net adverse notable items, but profit before tax excluding notable items rose to a record $36.6 billion and return on tangible equity on that basis was 17.2%. The ordinary dividend rose 14% to $0.75 per share. In the first half of 2026, revenue rose 11% to $37.7 billion and reported pre-tax profit rose 23% to $19.5 billion, with an annualised RoTE excluding notable items of 19.1%; the bank also restarted share buybacks in August 2026.
Revenue and profit by year
Barclays
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$35.4B | ~$8.2B | 23.0% | +10.6% | Source |
| FY2024 | ~$32B | ~$7B | 21.9% | +3.2% | Source |
| FY2023 | ~$31B | ~$5.6B | 18.2% | -1.0% | Source |
| FY2022 | ~$31.3B | ~$6.6B | 21.2% | +5.1% | Source |
| FY2021 | ~$29.8B | ~$8.2B | 27.5% | — | Source |
HSBC
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $68.3B | $21.1B | 30.9% | +3.7% | Source |
| FY2024 | $65.9B | $22.9B | 34.8% | -0.3% | Source |
| FY2023 | $66.1B | $22.4B | 34.0% | +27.7% | Source |
| FY2022 | $51.7B | $14.3B | 27.7% | +4.4% | Source |
| FY2021 | $49.6B | $12.6B | 25.4% | -1.7% | Source |
| FY2020 | $50.4B | — | 0.0% | -10.1% | Source |
| FY2019 | $56.1B | — | 0.0% | — | Source |
Where the revenue comes from
Barclays
- Net Interest Income (Retail & Mortgages)~45%
The foundational engine of the ring-fenced Barclays UK entity, generated from the spread between interest earned on a $254 billion+ mortgage book and commercial loans, and the interest paid on a stable, low-cost retail deposit base. This stream provides predictable, counter-cyclical cash flows that anchor the bank's overall profitability and fund its domestic lending operations.
- Corporate & Institutional Banking Fees~25%
Revenue derived from providing sophisticated treasury management, cross-border trade finance, foreign exchange (FX) hedging, and syndicated lending solutions to multinational corporations and large institutional clients. This capital-efficient stream generates substantial fee-based income that is largely uncorrelated with the domestic interest rate cycle.
- FICC Trading & Market Making~20%
The most valuable asset of the investment bank, generating revenues through market-making, proprietary trading, and client facilitation in European credit, interest rate derivatives, and emerging market currencies. This stream is volatile but generates exceptional, counter-cyclical profits during periods of macroeconomic and geopolitical market volatility.
- Wealth Management & Advisory Fees~10%
A rapidly scaling, capital-light revenue stream derived from management fees, performance fees, and advisory commissions generated by the bank's private banking and asset management operations for high-net-worth and ultra-high-net-worth individuals across the UK and Europe.
HSBC
- Net Interest Income
Largest profit driver
HSBC earns spread income from deposits, loans, mortgages, corporate lending, and treasury balances across retail, commercial, and institutional clients.
- Wealth and Personal Banking
Major growth platform
The bank earns fees and spreads from affluent banking, cards, deposits, investment products, insurance distribution, mortgages, and international wealth services.
- Commercial Banking
Core relationship engine
HSBC provides credit, liquidity, trade finance, cash management, guarantees, foreign exchange, and working-capital services to companies operating across borders.
- Corporate and Institutional Banking
Institutional revenue stream
The group serves multinationals, financial institutions, governments, and investors through markets, securities services, financing, advisory, and global payments.
Business model and strategy
Barclays
How it makes money
Barclays operates a 'universal banking' model, aiming to do everything for everyone. In the UK, they operate like a traditional utility, taking in cheap consumer deposits and issuing mortgages and credit cards (Barclaycard). Globally, the investment bank generates revenue entirely differently, acting as a large middleman.
Growth strategy
Facing intense pressure to boost its stock price, Barclays' current growth strategy is focused on aggressive cost-cutting and a large pivot toward high-margin, capital-light businesses.
Competitive advantage
Barclays' competitive advantage is its dominant position in the UK retail market and the large scale of its Barclaycard division. They are deeply entrenched in the British economy, giving them access to a highly stable, low-cost deposit base. In the investment banking sector, their advantage stems from their bold acquisition of Lehman Brothers' North American operations in 2008.
HSBC
How it makes money
HSBC makes money in two main ways. The first is net interest income: the spread between what it pays on deposits and earns on loans, mortgages and its structural hedge, which totalled $34.8 billion in FY2025. The second is fee and other income from wealth products, insurance, foreign exchange, payments, trade finance and capital markets.
Growth strategy
Under Georges Elhedery, HSBC is simplifying and concentrating capital where it has scale. In late 2024 it merged regional layers into four businesses and targeted about $1.5 billion of annualised cost savings by the end of 2026.
Competitive advantage
HSBC's edge is a cross-border network that few banks can copy. It is one of three note-issuing banks in Hong Kong, owns Hang Seng Bank outright since 2026, and holds leading positions in trade finance, payments and FX for companies moving goods and money between Asia, the Middle East, Europe and the Americas.
Questions about Barclays vs HSBC
Which company has higher revenue — Barclays PLC or HSBC Holdings plc?
Barclays PLC reported ~$35.4B (FY2025), while HSBC Holdings plc reported $68.3B (FY2025). By last reported revenue, HSBC Holdings plc is the larger business, with Barclays PLC reporting a smaller revenue base.
What is the market cap of Barclays PLC vs HSBC Holdings plc?
Barclays PLC's market capitalisation stands at $41.2B, while HSBC Holdings plc's is $343.0B. HSBC Holdings plc carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Barclays PLC.
Which is more financially efficient — Barclays PLC or HSBC Holdings plc?
Barclays PLC generates $427k / employee in revenue per employee, while HSBC Holdings plc generates $327k / employee. Barclays PLC shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Barclays PLC and HSBC Holdings plc make money?
Barclays PLC and HSBC Holdings plc generate revenue in fundamentally different ways. Barclays PLC: Barclays operates a 'universal banking' model, aiming to do everything for everyone. HSBC Holdings plc: HSBC makes money in two main ways.
Which company is valued higher relative to revenue — Barclays PLC or HSBC Holdings plc?
On a price-to-sales (P/S) basis, Barclays PLC trades at 1.2x P/S and HSBC Holdings plc at 5.0x P/S. HSBC Holdings plc commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Barclays PLC. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Barclays PLC bigger than HSBC Holdings plc?
By last reported revenue, HSBC Holdings plc ($68.3B (FY2025)) is the larger company compared to Barclays PLC (~$35.4B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Barclays vs HSBC overview