This rally occurred despite a 7% decline in annual pre-tax profit, which fell to $29.9bn (c. £22.1bn) following $5bn (c. £3.7bn) in adverse “notable items”. These charges included a $1.1bn (c. £810 million) provision linked to the Bernie Madoff fraud scandal.

The final profit figure surpassed analyst expectations of $28.9bn, providing a significant lift to the FTSE 100.

The bank’s financial performance was bolstered by a 4% rise in total revenue to $68.3bn (c. £50.5bn), underpinned by a 24% surge in wealth management income. Chief executive Georges Elhedery has made this sector a strategic priority, recently opening a flagship wealth centre in London to attract affluent “premier” clients. This focus on growth and high returns was reflected in a $4bn (c. £3bn) bonus pool for staff, the largest such payout in 14 years.

Regarding capital stability, the bank’s Common Equity Tier 1 (CET1) ratio stood at 14.9%. HSBC intends to manage this figure back down to a target range of 14% to 14.5% through organic capital generation.

The board has paused share buybacks to absorb the capital impact of its recent Hang Seng Bank privatisation, which was completed ahead of schedule. While the total dividend for 2025 fell to 75 cents per share from the previous year’s 87 cents, the board initiated a fourth interim dividend of 45 cents.

Mr Elhedery maintained that the bank is becoming a simpler, more agile institution capable of delivering disciplined growth for its shareholders.