v3.25.4
HSBC Holdings statement of changes in equity - USD ($)
$ in Millions
Total
Other equity instruments
Retained earnings
Merger and other reserves
HSBC Holdings
HSBC Holdings
Called up share capital
HSBC Holdings
Share premium
HSBC Holdings
Other equity instruments
HSBC Holdings
Retained earnings
 [1],[2]
HSBC Holdings
Merger and other reserves
Equity beginning of period at Dec. 31, 2022 $ 185,197 $ 19,746 $ 142,409 $ 33,209 $ 153,108 $ 10,147 $ 14,664 $ 19,746 $ 67,996 $ 40,555
Profit for the year 24,559   23,533   9,212       9,212  
Other comprehensive income/(expense) for the year, net of tax 4,983   114 1 (124)       (124)  
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk (1,219)   (1,220)   (124)       (124)  
Total comprehensive income/(expense) for the year 29,542   23,647 1 9,088       9,088  
Shares issued and purchased under employee share plans 0   (79)   (249) 5 74   (328)  
Capital securities issued 1,996 1,996     1,980     1,980    
Cancellation of shares 0     521 (7,025) (521)     (7,025) 521
Dividends to shareholders (12,196)   (11,593)   (11,593)       (11,593)  
Redemption of securities (4,003) (4,023) 20   (4,003)     (4,023) 20  
Transfers 0 [3]   5,130 [3] (5,130) [3] 0 [4]       5,130 [4] (5,130) [4]
Other movements (1,383)   (843)   0          
Equity end of period at Dec. 31, 2023 192,610 17,719 152,148 28,601 141,306 9,631 14,738 17,703 63,288 35,946
Equity beginning of period at Dec. 31, 2023 192,610 17,719 152,148 28,601 141,306 9,631 14,738 17,703 63,288 35,946
Profit for the year 24,999   23,979   21,048       21,048  
Other comprehensive income/(expense) for the year, net of tax 1,940   1,018 5 21       21  
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk (439)   (439)   21       21  
Total comprehensive income/(expense) for the year 26,939   24,997 5 21,069       21,069  
Shares issued and purchased under employee share plans 0   (77)   (104) 5 72   (181)  
Capital securities issued 3,601 3,601     3,571     3,571    
Cancellation of shares 0     663 (11,043) (663)     (11,043) 663
Dividends to shareholders (17,100)   (16,410)   (16,410)       (16,410)  
Redemption of securities (2,250) [5] (2,250) [5]     (2,250)     (2,250) 0  
Transfers 0 [3]   2,945 [3] (2,945) [3] 0 [4]       2,945 [4] (2,945) [4]
Other movements (1,013)   (687) 4 0          
Equity end of period at Dec. 31, 2024 192,273 19,070 152,402 26,328 136,139 8,973 14,810 19,024 59,668 33,664
Equity beginning of period at Dec. 31, 2024 192,273 19,070 152,402 26,328 136,139 8,973 14,810 19,024 59,668 33,664
Profit for the year 23,131   22,285   22,611       22,611  
Other comprehensive income/(expense) for the year, net of tax 10,541   (474) 14 90       90  
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk (479)   (479)   90       90  
Total comprehensive income/(expense) for the year 33,672   21,811 14 22,701       22,701  
Shares issued and purchased under employee share plans 0   (116)   (519) 5 111   (635)  
Capital securities issued 4,096 [6] 4,096 [6]     4,061 [7]     4,061 [7]    
Cancellation of shares 0     390 (8,039) [8] (390) [8]     (8,039) [8] 390 [8]
Share premium reclassification to retained earnings 0 [9]   14,810 [9]   0 [10]   (14,810) [10]   14,810 [10]  
Capital redemption reserves reclassification to retained earnings 0 [9]   1,755 [9] (1,755) [9] 0 [10]       1,755 [10] (1,755) [10]
Dividends to shareholders (13,482)   (12,764)   (12,764)       (12,764)  
Redemption of securities (2,450) [11] (2,450) [11]     (2,450) [12]     (2,450) [12] 0 [12]  
Transfers 0                  
Other movements (1,025) [13]   (875) [13] 1 [13] 20       20  
Equity end of period at Dec. 31, 2025 $ 205,666 $ 20,716 $ 169,605 $ 24,978 $ 139,149 $ 8,588 $ 111 $ 20,635 $ 77,516 $ 32,299
[1] At 31 December 2025, retained earnings included 35,354,337 own shares held. These include own shares held by HSBC Holdings for the benefit of
beneficiaries within employee trusts for the settlement of shares expected to be delivered under employee share schemes or bonus plans.
[2] Retained earnings include unrealised profits from intercompany transactions and share-based payment reserves, which are excluded from distributable
reserves. Distributable reserves include the distributable portions of retained earnings and the merger reserve. Distributable reserves are reduced by ordinary
dividend payments, distributions on additional tier 1 instruments, share buy-backs and impairments in investments in subsidiaries. They are increased by profits
and the realisation of retained earnings or merger reserves upon impairment of an associated investment in subsidiary.
[3] At 31 December 2024, an impairment of $11.4bn (2023: $5.5bn) of HSBC Overseas Holdings (UK) Limited was recognised, resulting in a permitted transfer of
$2.9bn (2023: $5.1bn) from the remaining historical associated merger reserve to retained earnings.
[4] At 31 December 2024, an impairment of $11.4bn (2023: $5.5bn) of HSBC Overseas Holdings (UK) Limited was recognised, resulting in a permitted transfer of
$2.9bn (2023: $5.1bn) from the remaining historical associated merger reserve to retained earnings.
[5] Includes recycling of fair value losses of $1.5bn following completion of the sale of our retail banking operations in France.
[6] HSBC Holdings issued $1.5bn 6.950% contingent convertible securities in February 2025, SGD0.8bn 5.000% contingent convertible securities in March 2025
and $2.0bn 7.050% contingent convertible securities in June 2025. All instruments were recorded net of issuance costs.
[7] HSBC Holdings issued $1.5bn 6.950% contingent convertible securities in February 2025, SGD0.8bn 5.000% contingent convertible securities in March 2025
and $2.0bn 7.050% contingent convertible securities in June 2025. All instruments were recorded net of issuance cost.
[8] HSBC Holdings announced the following share buy-backs during the year: a share buy-back of up to $2.0bn in February 2025, which was completed in April
2025; a share buy-back of up to $3.0bn in May 2025, which was completed in July 2025 and a share buy-back of up to $3.0bn in July 2025, which was
completed in October 2025.
[9] On 24 June 2025, the High Court of Justice in England and Wales confirmed the cancellation of $14.8bn standing to the credit of the HSBC Holdings' share
premium account and $1.8bn standing to the credit of its capital redemption reserve, following approval at HSBC Holdings' Annual General Meeting held on
2 May 2025 (the ‘Capital Reduction’). The Court Order confirming the Capital Reduction was registered by the Registrar of Companies on 10 July 2025, resulting
in a combined total of $16.6bn being reclassified to retained earnings with no impact on total equity.
[10] On 24 June 2025, the High Court of Justice in England and Wales confirmed the cancellation of $14.8bn standing to the credit of the HSBC Holdings’ share
premium account and $1.8bn standing to the credit of its capital redemption reserve, following approval at HSBC Holdings’ Annual General Meeting held on
2 May 2025 (the ‘Capital Reduction’). The Court Order confirming the Capital Reduction was registered by the Registrar of Companies on 10 July 2025, resulting
in a combined total of $16.6bn being reclassified to retained earnings with no impact on total equity.
[11] In March 2025, HSBC Holdings redeemed its $2.45bn 6.375% contingent convertible securities.
[12] In March 2025, HSBC Holdings redeemed its $2.45bn 6.375% contingent convertible securities.
[13] Includes $1.1bn (2024: $0.5bn; 2023: $0.6bn) of shares bought by HSBC Holdings Employee Benefit Trust to satisfy obligation to deliver shares under employee
share plans.