HSBC has reported a substantial rise in its pre-tax profit for the last quarter, with figures showing an increase of nearly twofold to $6.8 billion compared to the previous year. According to RTHK, this growth includes a favorable net impact of $3.3 billion from notable items, primarily due to the absence of a $5.2 billion foreign exchange loss and other reserve reversals recognized after the sale of its Argentine business in the fourth quarter of 2024. However, the increase was partially offset by a $1.5 billion reserve reversal loss following the sale of its French housing and certain other loan portfolios in the fourth quarter of 2025.
The rise in profit also reflects growth in net interest income from banking operations and a reduction in expected credit losses. Revenue for the last quarter grew by 42% year-on-year to $16.4 billion, driven by increased net interest income from banking operations and higher fees and other income from wealth management.
Expected credit losses decreased by $500 million to $900 million, mainly due to a decline in anticipated credit losses in wholesale lending. This includes a $200 million third-level provision related to the mainland commercial real estate sector in the fourth quarter of 2024, as well as provisions concerning a single corporate risk exposure in the UK under the corporate and institutional finance business.