Company Overview

HSBC Holdings plc stands as one of the largest Europe-based banks by total assets, with $3.098 trillion as of September 2024, positioning it as the 7th largest bank in the world by total assets and the 3rd largest non-state owned bank globally. Founded in 1865 and based in London, the United Kingdom, HSBC has grown to become a dominant force in international banking.

Business Structure and Operations

HSBC serves millions of customers through its four global businesses, operating across multiple segments to deliver comprehensive financial services worldwide. The bank has recently undergone significant organizational restructuring, with as of 1 January 2025, operating through four new businesses: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking.

The company's extensive global presence is reflected in its operational footprint, with over 9,500 offices in 76 countries and territories across Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. As of March 2025, HSBC maintains offices in 58 countries and territories, managing assets of $3.054 trillion.

Key Business Segments

- Wealth and Personal Banking: This segment serves personal banking and high net worth individuals, focusing on delivering personalized financial solutions and wealth management services.

- Commercial Banking: The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services, serving small and medium sized enterprises, mid-market enterprises, and corporates.

- Global Banking and Markets: This segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and investment services, serving government, corporate and institutional clients, and private investors.

Financial Performance 2024

HSBC delivered exceptional financial results for 2024, demonstrating strong operational performance across key metrics:

Revenue and Profitability

- Revenue: US$61.3 billion (up 8.7% from FY 2023)

- Profit Before Tax: $32.3 billion, up $2.0 billion, including a $1.0 billion net favourable impact from notable items

- Return on Average Tangible Equity (RoTE): 14.6% (or 16.0% excluding notable items)

- Operating Expenses: $33.0 billion were $1.0 billion, or 3%, higher than in 2023

Capital Position and Shareholder Returns

- Common Equity Tier 1 (CET1) Capital Ratio: 14.9%

- Total Dividends: $0.87 per share in respect of 2024, including a $0.21 special dividend following the sale of our business in Canada

- Share Buyback Program: Up to $2 billion share buyback announced, bringing total returns to shareholders in respect of 2024 to $26.9 billion through buybacks and dividends

Market Capitalization

HSBC market cap as of September 19, 2025 is $242 billion, reflecting its substantial market presence and investor confidence.

Strategic Initiatives and Outlook

Organizational Restructuring

HSBC has undertaken significant structural changes to enhance operational efficiency. In October, the bank announced simplification of its organisational structure to help accelerate delivery against strategic priorities.

Notable Transactions

The bank's 2024 performance included several significant transactions: notable items included a gain of $4.8 billion on the disposal of banking business in Canada, impacts of the disposal of business in Argentina comprising a $1.0 billion loss on disposal, and the recycling of foreign currency reserve losses and other reserves of $5.2 billion.

Future Targets

HSBC has established clear financial targets for the coming years:

- Targeting a mid-teens RoTE in each of the three years from 2025 to 2027, excluding the impact of notable items

- Expecting banking net interest income of around $42 billion in 2025

- Targeting growth in target basis operating expenses of approximately 3% in 2025, compared with 2024

Capital Management

The bank intends to continue managing the CET1 capital ratio within its medium-term target range of 14% to 14.5%, with a dividend payout ratio target basis of 50% for 2025, excluding material notable items and related impacts.

Investment Focus and Innovation

HSBC continues to invest heavily in technology and digital transformation. The growth in operating expenses was mainly due to higher spend and investment in technology and the impacts of inflation. The bank has also been active in innovative financial solutions, recently launching various digital banking and trade finance platforms.

HSBC Holdings plc represents a cornerstone investment opportunity in the global banking sector, combining extensive international presence, strong financial performance, and strategic positioning for future growth. The bank's robust capital position, consistent dividend policy, and ongoing operational improvements make it a significant player in international finance markets.