In HSBC’s 2025 annual results, the bank saw a 6% increase in customer loans and advances to £231.2bn, driven by growth in mortgages and commercial lending.
This included a £6.4bn growth in net mortgage lending.
Changes follow HSBC mortgage market share growth
HSBC UK said it maintained a strong presence in the market and strengthened its affordability controls and credit policy where appropriate.
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The quality of its mortgage book “remained strong” with low levels of impairment allowances. The average loan-to-value (LTV) ratio on new lending was 69%, while the overall book had an average LTV of 55%.
HSBC Group said there was an opportunity to continue building its mortgage franchise in the UK and share in SME banking.
Rise in HSBC annual revenue
HSBC UK’s revenue increased by 5% or £489m to £10.5bn, driven by higher net interest income and its net interest margin rising from 2.56% in 2024 to 2.63% in 2025.
Its profit was relatively flat, falling by £28m to £5.6bn.
CEO speaks on HSBC annual reports
Georges Elhedery, Group CEO, said: “2025 was a year of decisive action and swift execution, which is reflected in our strong performance. Each of our four businesses performed well, and we have strong momentum across the bank.”
He said this was why HSBC was raising its ambition and targeting a 17% return on tangible equity, or better, in each year from 2026 to 2028. It is also aiming for year-on-year revenue growth over the same period on the same basis, rising to 5% in 2028.
Elhedery said: “We are becoming a simple, more agile, focused bank, one that moves with the speed our customers need to navigate the modern world. We are delivering growth, investing for growth and we are executing our strategy with discipline and precision. That gives us confidence in our ability to continue delivering for our shareholders.”
