v3.25.4
Consolidated statement of changes in equity - USD ($)
$ in Millions
Total
Total share- holders’ equity
Called up share capital and share premium
Other equity instruments
Financial assets at FVOCI reserve
Cash flow hedging reserve
Foreign exchange reserve
Merger and other reserves
Insurance finance reserve
Retained earnings
Non- controlling interests
Equity beginning of period at Dec. 31, 2022 $ 185,197 $ 177,833 $ 24,811 $ 19,746 $ (7,038) $ (3,808) $ (32,575) $ 33,209 $ 1,079 [1] $ 142,409 $ 7,364
Profit for the year 24,559 23,533               23,533 1,026
Other comprehensive income/(expense) for the year, net of tax 4,983 4,965     2,402 3,030 (211) 1 (371) [1] 114 18
– debt instruments at fair value through other comprehensive income 2,599 2,574     2,574           25
– equity instruments designated at fair value through other comprehensive income (120) (93)     (93)           (27)
– cash flow hedges 2,953 2,919       2,919         34
– 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)               (1,220) 1
– property revaluation 1 1           1      
– remeasurement of defined benefit asset/liability (314) (317)               (317) 3
– share for the year 47 47               47  
– effects of hyperinflation 1,604 1,604               1,604  
– foreign exchange reclassified to income statement on disposal or dilution of a foreign operation 0                    
– insurance finance income/(expense) recognised in other comprehensive income (364) (364)             (364) [1]    
– exchange differences (204) (186)     (79) 111 (211)   (7) [1]   (18)
Total comprehensive income/(expense) for the year 29,542 28,498     2,402 3,030 (211) 1 (371) [1] 23,647 1,044
Shares issued under employee remuneration and share plans 0   79             (79)  
Capital securities issued 1,996 1,996   1,996              
Dividends to shareholders (12,196) (11,593)               (11,593) (603)
Redemption of securities (4,003) (4,003)   (4,023)           20  
Cost of share-based payment arrangements 482 482               482  
Transfers [2] 0             (5,130)   5,130  
Share buy-back (7,025) (7,025)               (7,025)  
Cancellation of shares 0   (521)         521      
Other movements (1,383) (859)     1,129 (255) (967)   77 [1] (843) (524)
Equity end of period at Dec. 31, 2023 192,610 185,329 24,369 17,719 (3,507) (1,033) (33,753) 28,601 785 [1] 152,148 7,281
Equity beginning of period at Dec. 31, 2023 192,610 185,329 24,369 17,719 (3,507) (1,033) (33,753) 28,601 785 [1] 152,148 7,281
Profit for the year 24,999 23,979               23,979 1,020
Other comprehensive income/(expense) for the year, net of tax 1,940 1,916     259 (46) 863 5 (183) [1] 1,018 24
– debt instruments at fair value through other comprehensive income 78 62     62           16
– equity instruments designated at fair value through other comprehensive income 99 75     75           24
– cash flow hedges (314) (312)       (312)         (2)
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk (439) (439)               (439)  
– property revaluation 5 5           5      
– remeasurement of defined benefit asset/liability (228) (244)               (244) 16
– share for the year 462 462               462  
– effects of hyperinflation 1,239 1,239               1,239  
– foreign exchange reclassified to income statement on disposal or dilution of a foreign operation 5,816 5,816         5,816        
– other reserves reclassified to income statement on disposal or dilution of a foreign operation 347 347     85 262          
– insurance finance income/(expense) recognised in other comprehensive income (142) (142)             (142) [1]    
– exchange differences (4,983) (4,953)     37 4 (4,953)   (41) [1]   (30)
Total comprehensive income/(expense) for the year 26,939 25,895     259 (46) 863 5 (183) [1] 24,997 1,044
Shares issued under employee remuneration and share plans 0   77             (77)  
Capital securities issued 3,601 3,601   3,601              
Dividends to shareholders (17,100) (16,410)               (16,410) (690)
Redemption of securities [3] (2,250) (2,250)   (2,250)              
Cost of share-based payment arrangements 529 529               529  
Transfers [2] 0             (2,945)   2,945  
Share buy-back (11,043) (11,043)               (11,043)  
Cancellation of shares 0   (663)         663      
Other movements (1,013) (678)     2   3 4   (687) (335)
Equity end of period at Dec. 31, 2024 192,273 184,973 23,783 19,070 (3,246) (1,079) (32,887) 26,328 602 [1] 152,402 7,300
Equity beginning of period at Dec. 31, 2024 192,273 184,973 23,783 19,070 (3,246) (1,079) (32,887) 26,328 602 [1] 152,402 7,300
Profit for the year 23,131 22,285               22,285 846
Other comprehensive income/(expense) for the year, net of tax 10,541 10,376     2,926 1,649 6,863 14 (602) [1] (474) 165
– debt instruments at fair value through other comprehensive income [3] 2,291 2,267     2,267           24
– equity instruments designated at fair value through other comprehensive income 98 84     84           14
– cash flow hedges 1,773 1,700       1,700         73
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk (479) (479)               (479)  
– property revaluation 14 14           14      
– remeasurement of defined benefit asset/liability (184) (189)               (189) 5
– share for the year 110 110               110  
– effects of hyperinflation 140 140               140  
– foreign exchange reclassified to income statement on disposal or dilution of a foreign operation [4] 208 208         208        
– other reserves reclassified to income statement on disposal or dilution of a foreign operation [5] 2 2     745       (687) (56)  
– insurance finance income/(expense) recognised in other comprehensive income 5 5             5 [1]    
– exchange differences 6,563 6,514     (170) (51) 6,655   80 [1] 0 49
Total comprehensive income/(expense) for the year 33,672 32,661     2,926 1,649 6,863 14 (602) [1] 21,811 1,011
Shares issued under employee remuneration and share plans 0   116             (116)  
Share premium reclassification to retained earnings [6] 0   (14,810)             14,810  
Capital redemption reserves reclassification to retained earnings [6] 0             (1,755)   1,755  
Capital securities issued [7] 4,096 4,096   4,096              
Dividends to shareholders (13,482) (12,764)               (12,764) (718)
Redemption of securities [8] (2,450) (2,450)   (2,450)              
Cost of share-based payment arrangements 621 621               621  
Transfers 0 0                  
Share buy-back [9] (8,039) (8,039)               (8,039)  
Cancellation of shares 0   (390)         390      
Other movements [10] (1,025) (873)     1     1   (875) (152)
Equity end of period at Dec. 31, 2025 $ 205,666 $ 198,225 $ 8,699 $ 20,716 $ (319) $ 570 $ (26,024) $ 24,978 $ 0 [1] $ 169,605 $ 7,441
[1] The insurance finance reserve reflects the impact of the adoption of the other comprehensive income option for our insurance business in France. Underlying
assets supporting these contracts are measured at fair value through other comprehensive income. Under this option, only the amount that matches income or
expenses recognised in profit or loss on underlying items is included in finance income or expenses, resulting in the elimination of income statement accounting
mismatches. The remaining amount of finance income or expenses for these insurance contracts is recognised in other comprehensive income (‘OCI’). At
31 December 2025, the entire balance was reclassified to income statement following completion of the sale of the insurance business in France
[2] 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.
[3] Includes recycling of fair value losses of $1.5bn following completion of the sale of our retail banking operations in France.
[4] Includes the recycling of a $0.2bn foreign currency translation reserves loss as a result of the dilution of our shareholding in BoCom.
[5] Includes insurance finance income reclassification of $0.7bn and $0.7bn fair value losses reclassification following completion of the sale of our insurance business in
France.
[6] 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.
[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 costs.
[8] In March 2025, HSBC Holdings redeemed its $2.45bn 6.375% contingent convertible securities.
[9] 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.
[10] 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.