"HSBC increased total variable pay by 10 per cent year-on-year, taking the 2025 bonus pot to its highest level since $4.2bn was distributed in 2011. The uplift comes despite a 7.4 per cent fall in annual pre-tax profits to $29.9bn, a figure that nevertheless beat analyst forecasts of $28.9bn."
"Chief executive Georges Elhedery said the bank was benefiting from "strong momentum" and defended the bonus rise as part of a drive to embed a "high performance culture". "It's a culture where talent and performance are better rewarded," he said."
"Since taking the helm, Elhedery has embarked on a sweeping restructuring designed to simplify the bank and cut costs. HSBC now expects to achieve $1.5bn in savings by the end of June, six months earlier than originally planned. Headcount fell to 208,720 at the end of last year from 211,304 the previous year."
"The bank is also deepening its focus on Asia, where it generates the bulk of its profits. It recently completed a $13.6bn transaction to take full control of its Hong Kong-focused subsidiary, Hang Seng Bank. HSBC said it expects to generate $900m in benefits from Hang Seng by 2028, including $500m in synergies."
HSBC announced a $3.9bn bonus pool for 2025, representing a 10% increase year-on-year and the largest payout since 2011. Despite pre-tax profits falling 7.4% to $29.9bn, the results exceeded analyst expectations of $28.9bn. The profit decline was driven by $4.9bn in one-off charges, including legal provisions and impairments related to its China holdings. CEO Georges Elhedery justified the bonus increase as part of embedding a high-performance culture. The bank is executing a major restructuring to simplify operations and achieve $1.5bn in cost savings by June, six months ahead of schedule. Headcount decreased by approximately 2,500 employees. HSBC is deepening its Asia focus, recently completing a $13.6bn acquisition to gain full control of Hang Seng Bank, expecting $900m in benefits by 2028. The bank also returned $7.71bn to shareholders through dividends.
Read at Business Matters
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