HSBC has said it will not make further share buybacks until its capital ratios have improved following its privatisation of Hang Seng Bank, potentially extending its previous warning of a three-quarter suspension.
Europe’s largest lender has a target of keeping its common equity tier one capital ratio — a measure of a bank’s ability to withstand financial distress — between 14 and 14.5 per cent but said it fell below this range in January after folding in Hang Seng, a local Hong Kong lender.
The warning came as HSBC reported $6.8bn of pre-tax profits in the final quarter of 2025, up from $2.3bn a year earlier but below analyst expectations compiled by Bloomberg. Revenue rose 42 per cent to $16.4bn.