HSBC Q1 2025 earnings

Europe’s largest lender HSBC’s first-quarter results on Tuesday beat estimates, though profit and revenue both declined on an year-on-year basis.

Here are HSBC’s first-quarter 2025 results compared with consensus estimates compiled by the bank.

• Profit before tax: $9.48 billion vs. $7.83 billion
• Revenue: $17.65 billion vs. $16.67 billion

The bank’s profit, however, declined 25% on a year-on-year basis. Revenue fell 15% from last year.

Profit before tax, however, soared nearly 317% from the previous quarter, while revenue rose

“Despite uncertainties on global trade, HSBC’s restructuring progress should continue to bring positive impacts on cost-saving,” said Manyi Lu, DBS Bank’s equity research analyst.

Last October, the bank announced a restructuring plan to split its operations into four divisions, creating separate “Eastern markets” and “Western markets” sectors. HSBC had said the reorganization will bring about $300 million in cost reductions this year.

There might be some headwinds from tariff and concerns on global recession, but the effect will be more prominent in the following quarters, Lu told CNBC.

The earnings do not reflect the full impact of U.S. President Donald Trump’s tariffs, with “reciprocal” levies announced in April having been suspended. However, tariffs on steel, aluminum and autos that have been in place since March.

HSBC CEO Georges Elhedery was among four United Kingdom bank CEOs who recently urged the Chancellor of the Exchequer to scrap the country’s ring-fencing rules, Sky News reported. The move was reportedly aimed at boosting the UK economy.

Ring-fencing involves isolating a bank’s consumer banking business from its riskier investment banking activities.