Europe's largest bank by assets, Hong Kong and Shanghai Banking Corp Ltd (HSBC), reported an 11% increase in profit before tax from India in 2025, reaching $1.9 billion compared to $1.7 billion in the previous year. According to reports from CNBC TV18, this growth was primarily driven by strong performance in the bank's corporate and institutional banking business, which serves large and small corporate clients and represents HSBC's largest division in India. The bank's annual report highlighted that about 50% of multinational companies are serviced by HSBC in India, where it launched the HSBC Innovation Banking platform committing $1 billion financing pool to fund startups in the country.
The corporate and institutional banking division emerged as the primary profit driver, contributing $1.5 billion to total India profits, representing a 14% year-on-year increase from $1.32 billion earned in 2024. As reported by CNBC TV18, the corporate centre division, which provides support services to the bank globally, was the second largest profit contributor with pre-tax profit of $266 million, down marginally by 1% from $269 million in 2024. The bank's global return on average tangible equity (RoTE) stood at 13.3% at the end of 2025, with the bank targeting to increase this to 17% for 2026-2028.
India emerged as HSBC's second-highest contributor to group profits in Asia, trailing only Hong Kong. According to CNBC TV18, this ranking was primarily influenced by strong performance in the Indian subsidiary, where the bank continues to be the largest foreign bank in the country. The bank maintained its position as HSBC's largest employee base with 47,000 employees out of a total workforce of 2.09 lakh full-time employees, significantly higher than the 33,000 employees in the UK and mainland China combined. Chairman Brendan Nelson expressed optimism about global economic expansion in 2026, citing robust consumption and government infrastructure investment as key growth drivers.
During 2025, HSBC India launched significant digital initiatives including the HSBC Innovation Bank with a $1 billion financing pool and new digital propositions in payments and trade. As reported by CNBC TV18, the bank expanded to four new cities with wealth and international potential, remaining the top wealth manager across foreign banks and becoming the first bank to launch international wealth solutions in GIFT City. These digital and geographical expansions demonstrate HSBC's commitment to strengthening its position in the Indian market through technological innovation and strategic growth.
Despite strong India performance, HSBC reported a 7% decline in global annual profits to $29.91 billion from $32.31 billion in 2024, though results still exceeded analyst expectations of $28.86 billion. As reported by The Economic Times, Group CEO Georges Elhedery announced plans to increase the bank's return on average tangible equity (RoTE) target to 17% for 2026-2028, with revenue growth targets rising to 5% by 2028. The bank is positioning itself as a "simple, more agile, focused bank" that moves with customer speed in the modern world, with Nelson noting that the combination of robust consumption and rising exports generated impressive growth in ASEAN markets, with this trend expected to continue in 2026.
