HSBC Q1 2025 Earnings: Pre-Tax Profit Falls 25% YoY, Jumps 317% QoQ

In its latest quarterly report, HSBC has announced a 25% year-on-year decline in profit before tax and a 15% drop in total revenue for Q1 2025, reflecting ongoing global financial headwinds. However, a 317% quarter-on-quarter surge in pre-tax profit points to significant short-term recovery momentum within the multinational banking giant.

Annual Drop Signals Lingering Global Uncertainty

According to the financial statement, HSBC's year-on-year losses were largely driven by:

Declining net interest margins, especially in Europe and Asia
Lower trading revenue due to market volatility
Higher operational and restructuring costs
Geopolitical instability and cautious lending environment

Despite its widespread global presence — with over 7,500 offices in more than 80 countries — the bank struggled to offset tightening economic conditions and reduced cross-border transaction volumes.

Quarterly Turnaround Driven by Strategic Gains

In contrast, HSBC’s quarter-on-quarter growth offered a glimmer of hope. The 317% surge in pre-tax profit was driven by:

Resurgent investment banking revenues
Streamlined cost-cutting measures initiated in late 2024
Growth in digital banking and wealth management sectors
Recovery in Asian market operations, especially in Hong Kong and Singapore

CEO’s Statement

HSBC Group CEO Noel Quinn stated:
"While we faced substantial headwinds over the past year, our quarterly performance reflects the effectiveness of our refocused strategy. We continue to reshape HSBC to become more agile, digitally driven, and Asia-centric."

Key Q1 2025 Financial Metrics

Pre-tax profit: $4.2 billion (▼25% YoY | ▲317% QoQ)
Total revenue: $12.6 billion (▼15% YoY)
Cost-to-income ratio: 62.3%
Return on tangible equity (RoTE): 10.7%
EPS (Earnings per share): $0.34

Forward Outlook

HSBC is expected to continue focusing on:

Digital transformation and automation
Green finance initiatives and ESG investment
Scaling operations in emerging Asian markets
Ongoing workforce restructuring to improve margins

While annual comparisons highlight the lingering challenges of a slowing global economy, the quarterly bounce signals that HSBC may be better positioned for a steadier performance in the remainder of 2025.