HSBC India has solidified its position as a primary engine of growth for the global banking giant, reporting an 11% increase in profit before tax to $1.9 billion for the 2025 calendar year. This performance elevates India to the bank’s second-largest profit contributor in Asia, trailing only Hong Kong and surpassing mainland China, where earnings were impacted by significant one-off charges. The surge was anchored by the Corporate and Institutional Banking (CIB) segment, which contributed $1.5 billion to the total pre-tax profit. This vertical benefited from a 60% year-on-year increase in equity capital market issuances and strong momentum in cross-border transaction banking. Corporate lending across Asia, including India, grew by $7 billion, reflecting the bank's success in capturing supply chain shifts and multinational client business. Wealth management and personal banking also showed resilience, with the bank expanding its footprint to four new cities and launching international wealth solutions in GIFT City. Despite a global headcount reduction, HSBC expanded its India workforce to 47,423 employees, making it the bank's largest staff base worldwide. Customer accounts in the country grew to $28.73 billion, up from $27.20 billion the previous year. On a global scale, HSBC reported a pre-tax profit of $29.91 billion for 2025. While this exceeded market expectations, it represented a 7% decline from the $32.3 billion recorded in 2024. The drop was largely attributed to $4.9 billion in one-off charges, including a $2.1 billion write-down related to its stake in China’s Bank of Communications. The bank is currently undergoing a strategic pivot to become a simpler, more agile institution. Key highlights of this transformation include: - Achieving $1.5 billion in annualized cost savings six months ahead of schedule. - Announcing 11 business or market exits to optimize the global portfolio. - Raising the return on tangible equity target to 17% or better through 2028. - Initiating a new share buyback program of up to $2 billion. In the broader Indian banking landscape, structural trends remain favorable. Domestic credit expanded 11.19% to reach $2.27 trillion by mid-2025, while gross non-performing assets across the sector fell to a historic low of 2.31%. This healthy macro environment, combined with the RBI's shift toward a neutral monetary stance and interest rate cuts in mid-2025, has provided a robust backdrop for foreign lenders to scale their operations.