HSBC’s wealth business reported a 22 per cent year-on-year increase in fee and other income at the end of June 2025, although the bank's overall pre-tax profit fell by $5.7bn year-on-year to $15.8bn, its latest Interim Results report has shown.

In total, the bank attracted net new invested assets of $44bn, including $27bn booked in Asia.

However, the bank's International Wealth and Premier Banking (IWPB) business saw its constant currency pre-tax profit fall by 8.7 per cent year-on-year to $2.1bn, while its revenue rose to $2.3bn.

The bank’s overall revenue fell by 9 per cent year-on-year to $34.1bn, with the reduction reflecting the impact of notable items, primarily from disposals in Canada and Argentina in H1 2024.

Furthermore, its pre-tax profit fell by $5.7bn year-on-year to $15.8bn, mainly due to the recognition of dilution and impairment losses of $2.1bn in Bank of Communications Co. (BoCom).

Its constant currency revenue excluding notable items increased by $1.9bn year-on-year to $35.4bn.

This contributed to the bank’s constant currency pre-tax profit, excluding notable items, increase of $900m year-on-year to $18.9bn.

HSBC said it continued to expect double-digit percentage average annual growth in fee and other income in its wealth business over the medium term.

The bank plans to continue to hire new relationship managers in its IWPB business, launch new wealth products, and invest in technology and training.

“We’re making positive progress in becoming a simple, more agile, focused organisation built on our core strengths,” commented HSBC group CEO, Georges Elhedery.

“In the first half, we continued to execute our strategy with discipline and each of our four businesses sustained momentum in their earnings with each growing revenue. This gives us confidence in our ability to deliver our targets.

“We continue to navigate this period of economic uncertainty and market volatility from a position of strength, putting the changing needs of our customers at the heart of everything we do.”

Also commenting on the results, Quilter Cheviot financials analyst, Will Howlett, said: “HSBC's results are a bit messy with accounting noise relating to its stake in China’s BoCom and also elevated restructuring charges.

“The underlying picture is better and profitability remains strong, allowing HSBC to declare a further $3bn share buyback.

“Despite the messiness, it was overall a good second quarter for HSBC with profits flat, but well ahead of expectations.

“Revenues increased 5 per cent, also comfortably ahead of expectations and while net interest income fell by 3 per cent, this too was better than expected. Meanwhile, HSBC’s wealth business continues to be strong with 22 per cent growth year-on-year.”

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