$HSBC HOLDINGS(00005.HK) announced its financial report. The following are key points excerpted from media:

HSBC announced measures to simplify its group structure, focusing on opportunities that will allow HSBC to build on its strong foundation and achieve growth.

The current target is to achieve an average return on tangible equity of approximately 15% annually during the three-year period from 2025 to 2027 (excluding notable items). HSBC is well aware that the interest rate outlook remains volatile and uncertain, especially in the medium term (compared to the 2025 guidance in the Q3 results: broadly the same).

The expected net interest income for banking operations in 2025 is approximately $42 billion. The current expectation is derived from a model based on a series of market-influenced factors. If these factors change, it will affect the model's results, and we will update the group's expectations for 2025 banking net interest income in future quarterly results announcements.

The 2025 target benchmark operating expenses are set to increase by approximately 3% compared to 2024.

The cost target takes into account the impact of cost savings from simplifying the structure, and these simplification measures are related to the group's announced restructuring plan. HSBC aims to reduce costs by approximately $300 million in 2025 and is committed to reducing the annualized cost base by $1.5 billion by the end of 2026. To achieve these results, we plan to incur $1.8 billion in severance and other prepaid costs in 2025 and 2026, which will be classified as notable items. We are focusing on opportunities where HSBC has clear competitive advantages and value-added returns, and we intend to reallocate approximately $1.5 billion from non-strategic business activities to these areas in the medium term.

The expected credit loss provision for 2025 is expected to remain between 30 and 40 basis points of the average total loan amount, within the group's medium-term planning range (including loans held for sale). In the long term, we continue to expect customer loan balances to achieve mid-single-digit percentage growth year-on-year.

The fees and other income from wealth management business are expected to achieve an average annual double-digit percentage growth in the medium term.

HSBC intends to maintain the Common Equity Tier 1 capital ratio within the medium-term target range of 14% to 14.5%. The 2025 dividend payout ratio target benchmark remains at 50%, excluding significant notable items and related impacts.