HSBC has unveiled its largest bonus pool in 14 years after annual profits came in ahead of City expectations, handing bankers a $3.9bn windfall as the group accelerates its strategic overhaul.
The FTSE 100 lender increased total variable pay by 10 per cent year-on-year, taking the 2025 bonus pot to its highest level since $4.2bn was distributed in 2011. The uplift comes despite a 7.4 per cent fall in annual pre-tax profits to $29.9bn, a figure that nevertheless beat analyst forecasts of $28.9bn.
Profits were weighed down by $4.9bn in one-off charges, including $1.4bn in legal provisions and a $2.1bn impairment linked to its stake in China’s Bank of Communications.
Chief executive Georges Elhedery said the bank was benefiting from “strong momentum” and defended the bonus rise as part of a drive to embed a “high performance culture”.
“It’s a culture where talent and performance are better rewarded,” he said.
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