HSBC Holdings (GB:HSBA)
LSE:HSBA
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HSBC Holdings
(LSE:HSBA)
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Rating:72Outperform
Price Target:
1,509.00 p
▲(10.53% Upside)
Action:ReiteratedDate:05/05/26
The score reflects solid underlying financial performance but with cash-flow volatility and balance-sheet/data-quality caveats as key constraints, while technical momentum is strong and valuation (moderate P/E with a ~4% yield) is supportive. Earnings-call updates were broadly constructive due to upgraded NII guidance and strong profitability, tempered by higher ECL guidance and one-off charges.
Positive Factors
Diversified global franchise
HSBC's multi‑segment footprint across retail, wealth, commercial and global banking provides durable revenue diversification. Broad-based growth across businesses reduces reliance on any single cycle, supports cross-sell and smoothing of income through macro swings, improving long-term resilience and predictability.
Negative Factors
Rising expected credit losses
Higher ECL guidance signals increased credit stress and elevates long‑run credit costs, which can compress net margins and reduce sustainable earnings. If macro or geopolitical pressures persist, elevated provisioning could materially depress profitability and limit capital available for growth or distributions over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified global franchise
HSBC's multi‑segment footprint across retail, wealth, commercial and global banking provides durable revenue diversification. Broad-based growth across businesses reduces reliance on any single cycle, supports cross-sell and smoothing of income through macro swings, improving long-term resilience and predictability.
Read all positive factors
HSBC Holdings (HSBA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£227.17B
Dividend Yield4.27%
Average Volume (3M)24.35M
Price to Earnings (P/E)9.6
Beta (1Y)1.53
Revenue Growth-10.53%
EPS Growth7.24%
CountryUK
Employees211,940
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.00
Shares Outstanding17,183,560,000
10 Day Avg. Volume24,642,152
30 Day Avg. Volume24,349,859
Financial Highlights & Ratios
PEG Ratio-15.12
Price to Book (P/B)1.55
Price to Sales (P/S)1.83
P/FCF Ratio28.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,452.51Price Target Upside6.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.68
Revenue Forecast (FY)£73.45B
HSBC Holdings Business Overview & Revenue Model
Company Description
HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banki...
How the Company Makes Money
HSBC primarily makes money by earning income from (1) interest-based activities and (2) fee- and trading-based activities, alongside insurance- and investment-related income in some businesses.
1) Net interest income (interest income minus intere...
HSBC Holdings Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call presented broad-based operational and financial progress: strong profitability (RoTE 18.7%), revenue growth, wealth franchise momentum, healthy deposit and loan momentum, simplification progress, and upgraded NII guidance. These positives were partially offset by one-off and precautionary hits: a higher Q1 ECL (52 bps) and an increased full-year ECL guidance (around 45 bps), a $0.4 billion fraud-related charge, transaction-related CET1 impacts, and quarter-on-quarter NII headwinds including a one-off. Management emphasized the idiosyncratic nature of some charges, maintained capital and dividend discipline, and flagged stress scenarios. On balance, the operational momentum and upgraded NII guidance outweigh the transitory and idiosyncratic negatives, while management retains conservative planning assumptions.Positive Updates
Strong Profitability and RoTE
Profit before tax excluding notable items of $10.1 billion; annualized return on tangible equity (RoTE) 18.7%, up 0.3 percentage points year-on-year and the highest level in nearly 20 years.
Negative Updates
Elevated Credit Charge in Q1 and Guidance Increase
First-quarter expected credit loss (ECL) charge of $1.3 billion, equivalent to an annualized 52 basis points of loans and advances; updated full-year 2026 ECL guidance to around 45 basis points reflecting macro and geopolitical uncertainty.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and RoTE
Profit before tax excluding notable items of $10.1 billion; annualized return on tangible equity (RoTE) 18.7%, up 0.3 percentage points year-on-year and the highest level in nearly 20 years.
Read all positive updates
Company Guidance
HSBC upgraded full‑year banking NII to around $46bn and revised 2026 expected ECL to about 45bps (Q1 ECL $1.3bn, annualized 52bps, including $0.3bn Middle East and $0.4bn fraud items); it reiterated targets of 5% revenue growth by 2028 (ex‑notable items), RoTE ≥17% (ex‑notable items) and a 50% dividend payout ratio for 2026 (ex‑notable items), and maintained a CET1 operating range of 14–14.5% (Q1 CET1 14%, down 90bps). Q1 highlights: revenue ex‑notable items $19.1bn (+4% YoY), PBT ex‑notable items $10.1bn, banking NII $11.3bn (+$0.3bn YoY, -$0.5bn QoQ), annualized RoTE 18.7%, cost guidance ~1% growth in 2026 vs 2025 (2025 cost baseline $34bn FX‑adjusted; Q1 cost growth 3% YoY, ~2% ex‑variable pay), $0.2bn simplification savings this quarter toward a $1.5bn target, deposits +$99bn YoY, wealth balances $1.6tn (+12% YoY) with $39bn net new money, insurance CSM $15.2bn (+19%), and an expected up to $0.4bn gain on the Indonesia retail sale in H1 2027; all other guidance unchanged.HSBC Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 138.70B | 150.61B | 143.29B | 129.51B | 76.17B | 73.95B |
| Gross Profit | 69.07B | 82.28B | 67.40B | 64.44B | 53.72B | 64.25B |
| EBITDA | 28.79B | 29.57B | 36.39B | 33.81B | 20.91B | 23.19B |
| Net Income | 18.92B | 22.75B | 23.98B | 23.53B | 15.56B | 13.92B |
Balance Sheet | ||||||
| Total Assets | 3.21T | 3.23T | 3.02T | 3.04T | 2.95T | 2.96T |
| Cash, Cash Equivalents and Short-Term Investments | 246.36B | 609.23B | 821.55B | 299.57B | 539.10B | 422.44B |
| Total Debt | 129.70B | 499.29B | 242.35B | 235.16B | 204.24B | 223.64B |
| Total Liabilities | 3.01T | 3.05T | 2.82T | 2.85T | 2.76T | 2.75T |
| Stockholders Equity | 192.55B | 177.57B | 184.97B | 185.33B | 177.83B | 198.25B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 9.56B | 61.42B | 35.42B | 22.02B | 100.75B |
| Operating Cash Flow | 0.00 | 11.04B | 65.31B | 39.11B | 26.43B | 104.31B |
| Investing Cash Flow | 0.00 | -209.82B | -76.56B | -62.91B | -34.48B | 27.54B |
| Financing Cash Flow | 0.00 | 168.90B | -26.46B | -17.56B | -6.29B | -10.79B |
HSBC Holdings Technical Analysis
Positive
1365.20
Price Trends
1256.04
Positive
1198.26
Positive
1078.25
Positive
Market Momentum
34.37
Negative
68.48
Neutral
90.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSBA, the sentiment is Positive. The current price of 1365.2 is above the 20-day moving average (MA) of 1263.91, above the 50-day MA of 1256.04, and above the 200-day MA of 1078.25, indicating a bullish trend. The MACD of 34.37 indicates Negative momentum. The RSI at 68.48 is Neutral, neither overbought nor oversold. The STOCH value of 90.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSBA.
HSBC Holdings Risk Analysis
HSBC Holdings disclosed 36 risk factors in its most recent earnings report. HSBC Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HSBC Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £227.17B | 9.62 | 12.07% | 4.27% | -10.53% | 7.24% | |
70 Outperform | £59.25B | 6.14 | 9.46% | 1.50% | 7.44% | 15.64% | |
68 Neutral | £11.16B | 3.32 | 12.75% | 6.78% | -2.34% | 2.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £57.11B | 8.87 | 10.75% | 3.41% | -18.98% | 23.57% | |
65 Neutral | £41.48B | 6.05 | 9.85% | 1.70% | -13.41% | 33.11% | |
60 Neutral | £45.46B | 7.35 | 14.55% | 3.85% | 2.05% | 20.10% |
* Financial Sector Average
GB:HSBA
HSBC Holdings
1,319.80
505.24
62.03%
GB:STAN
Standard Chartered
1,888.20
851.70
82.17%
GB:BARC
Barclays
435.00
134.03
44.53%
GB:INVP
Investec
614.50
175.44
39.96%
GB:LLOY
Lloyds Banking
99.03
28.85
41.11%
GB:NWG
NatWest Group
579.80
116.42
25.12%
HSBC Holdings Corporate Events
Dividends
HSBC Executives Reinvest Dividend into Additional Shares
Neutral
May 1, 2026
HSBC Holdings has disclosed routine share transactions by senior executives following the automatic reinvestment of the bank’s fourth interim dividend for 2025 into ordinary shares. The activity reflects the operation of existing share plan ...
Regulatory Filings and Compliance
HSBC Updates Share Capital and Voting Rights for Disclosure Purposes
Neutral
Apr 30, 2026
HSBC Holdings plc has confirmed that as of 29 April 2026 its issued share capital stands at 17,183,560,530 ordinary shares with a nominal value of US$0.50 each, and that no shares are held in treasury. This establishes the total number of voting r...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Issues New Shares Under Employee Share Plan, Updates Block Listing Balances
Neutral
Apr 30, 2026
HSBC Holdings has issued 14,171 new ordinary shares of US$0.50 each under its HSBC Share Plan 2011 during the period from 28 March to 29 April 2026, under an existing block listing. The new shares rank pari passu with existing ordinary shares, bri...
Business Operations and StrategyDelistings and Listing Changes
HSBC to Redeem Two 2027 Note Issues and Delist Them in June 2026
Neutral
Apr 23, 2026
HSBC Holdings will redeem in full two tranches of notes maturing in 2027, exercising issuer call options on HK$1.5bn 1.55% notes and €2bn 3.019% fixed-to-floating notes. The Hong Kong dollar notes will be redeemed on 3 June 2026 and the euro...
DividendsFinancial Disclosures
HSBC Sets Board Committee Meeting to Consider Q1 2026 Results and First Interim Dividend
Positive
Apr 22, 2026
HSBC Holdings plc has scheduled a committee of its Board of Directors to meet on 5 May 2026 to review and announce its earnings release for the first quarter of 2026 and to consider declaring a first interim dividend on its ordinary shares for the...
Business Operations and StrategyDividends
HSBC Sets Currency Terms for Fourth Interim 2025 Dividend
Positive
Apr 20, 2026
HSBC Holdings has confirmed details of its previously approved fourth interim dividend for the 2025 financial year, set at US$0.45 per ordinary share and payable on 30 April 2026 to shareholders on record as of 13 March 2026. The payout, available...
Business Operations and StrategyPrivate Placements and Financing
HSBC Clarifies Redemption Timing for US$2bn 2027 Senior Notes
Neutral
Apr 17, 2026
HSBC Holdings has issued an amended and restated notice of redemption for its US$2bn 1.589% fixed-to-floating rate senior unsecured notes due 2027, clarifying that while the contractual redemption date remains 24 May 2026, payment of principal and...
Business Operations and Strategy
HSBC to Redeem US$2 Billion Senior Notes Due 2027 at Par in May 2026
Neutral
Apr 16, 2026
HSBC Holdings has elected to redeem in full its US$2 billion 1.589% Fixed Rate/Floating Rate senior unsecured notes due 2027, exercising a par redemption option under its indenture. The notes will be redeemed at US$1,000 per US$1,000 principal amo...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants New Employee Share Awards Under Global Purchase Plan
Positive
Apr 14, 2026
HSBC Holdings has granted conditional share awards to employees under its International Employee Share Purchase Plan, covering a total of 307,754.79576 ordinary shares listed in London and Hong Kong. The awards, granted at no purchase price and wi...
Executive/Board Changes
HSBC Grants Significant Share Awards to UK Chief Executive David Lindberg
Neutral
Apr 2, 2026
HSBC Holdings has reported a share-based remuneration arrangement for David Lindberg, Chief Executive of HSBC UK Bank plc, involving both immediately vested and deferred awards of ordinary shares under the HSBC Share Plan 2011. The awards, granted...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants Over 2.1 Million Conditional Share Awards Under 2011 Plan
Positive
Apr 2, 2026
HSBC Holdings has granted conditional share awards over 2,119,724 ordinary shares to employees and former employees under the HSBC Share Plan 2011, with no purchase price and vesting mainly over three years in line with the group’s deferral ...
Business Operations and StrategyPrivate Placements and Financing
HSBC issues US$130m 10-year senior unsecured notes
Positive
Mar 27, 2026
HSBC Holdings plc has issued US$130m of 5.48% fixed-rate senior unsecured notes due 2036 under its existing Debt Issuance Programme. The bank plans to list and trade the notes on the Official List of the UK Financial Conduct Authority and the Main...
Regulatory Filings and Compliance
HSBC Discloses Senior Executive Dealings in Capital Securities and Shares
Neutral
Mar 26, 2026
HSBC disclosed senior executive dealings in its own securities under UK market abuse regulations, highlighting both debt and equity transactions. The filing underscores ongoing transparency requirements around management trading activity in the ba...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings
HSBC Wins Hong Kong Waiver to Issue Extra Contingent Convertible Securities
Positive
Mar 25, 2026
HSBC Holdings has obtained a waiver from the Hong Kong Stock Exchange allowing it to seek a special mandate to issue contingent convertible securities beyond the usual 20% limit on non-pre-emptive share issues. These contingent convertible securit...
Executive/Board ChangesDividendsRegulatory Filings and Compliance
HSBC Awards Dividend-Linked Shares to Executives as Senior Leader Sells Stake
Neutral
Mar 24, 2026
HSBC Holdings has awarded additional ordinary shares to several senior executives as dividend equivalents under its HSBC Share Plan 2011, linked to the fourth interim dividend for 2025. The awards, priced at an average of £11.9768 per share, ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
HSBC Raises US$2.5bn via Perpetual Contingent Convertible Securities
Positive
Mar 24, 2026
HSBC Holdings has issued US$2.5 billion of perpetual subordinated contingent convertible securities in two US$1.25 billion tranches, paying 6.75% and 7.00% coupons and callable during optional redemption periods in 2031 and 2036, respectively. The...
Executive/Board ChangesRegulatory Filings and Compliance
HSBC Discloses Vesting of Deferred Share Awards for Senior Executives
Neutral
Mar 13, 2026
HSBC Holdings has reported the vesting of deferred share awards granted under its annual incentive plans for performance years 2023 and 2024, with tranches vesting on 11 and 12 March 2026 for several senior executives. The transactions, conducted ...
Executive/Board ChangesRegulatory Filings and Compliance
HSBC Details Executive Share Award Vestings and Long‑Term Incentive Outcomes
Neutral
Mar 12, 2026
HSBC has reported the vesting of multiple deferred share, annual incentive and long‑term incentive awards for senior executives and other persons discharging managerial responsibilities, covering performance years 2018 to 2022 and long‑...
Business Operations and StrategyFinancial Disclosures
HSBC revamps business-line reporting ahead of 1Q 2026 results
Neutral
Mar 12, 2026
HSBC Holdings has announced changes to how it presents financial information across its four business lines and Corporate Centre, reflecting the migration of certain clients, mainly from its Hong Kong and UK operations into Corporate and Instituti...
Executive/Board Changes
HSBC Grants Multi‑Year Share Awards to Top Executives for 2025 Performance
Neutral
Mar 11, 2026
HSBC Holdings has granted long‑term incentive share awards and annual incentive share awards to its executive directors and senior managers for the 2025 performance year, with vesting schedules stretching from 2027 to 2030. The mix of forwar...
Executive/Board ChangesRegulatory Filings and Compliance
HSBC Grants 35 Million-Share Conditional Awards to Executives and Staff
Neutral
Mar 11, 2026
HSBC Holdings has granted conditional share awards over 35,019,686 ordinary shares under its HSBC Share Plan 2011 to directors, employees and former employees, with no purchase price payable. The grants include significant awards to executive dire...
Business Operations and StrategyPrivate Placements and Financing
HSBC Raises US$8 Billion Through Multi-Tranche Senior Unsecured Notes
Positive
Mar 10, 2026
HSBC Holdings has issued four tranches of senior unsecured notes totalling US$8 billion, combining fixed-to-floating and floating-rate structures with maturities ranging from 2030 to 2037. The bank plans to list the instruments on the New York Sto...
Regulatory Filings and Compliance
HSBC Asia Co-Chief Executive Surendra Rosha Sells HK$43 Million in Shares
Neutral
Mar 4, 2026
HSBC disclosed that Surendra Rosha, Co-Chief Executive for Asia and the Middle East, sold 308,400 HSBC ordinary shares on 3 March 2026 on the Hong Kong Stock Exchange. The transaction, executed from a jointly held nominee account with his spouse, ...
Financial DisclosuresRegulatory Filings and Compliance
HSBC Files 2025 Form 20-F and Publishes Annual Report Online
Positive
Feb 27, 2026
HSBC Holdings plc has filed its Annual Report on Form 20-F for the year ended 31 December 2025 with the U.S. Securities and Exchange Commission, providing detailed financial and operational disclosures to investors. The report is now accessible vi...
Regulatory Filings and Compliance
HSBC Discloses Share Sales by Senior Executives Under Market Abuse Rules
Neutral
Feb 27, 2026
HSBC has disclosed share disposals by two senior executives, in line with UK market abuse regulations governing dealings by persons discharging managerial responsibilities. Group Chief Operating Officer Suzanna White sold 35,000 HSBC shares in Lon...
Private Placements and FinancingRegulatory Filings and Compliance
HSBC Updates Base Prospectus Supplement for Fixed-Income Issuance
Neutral
Feb 27, 2026
HSBC Holdings has published a new base prospectus supplement dated 27 February 2026, updating its existing base prospectus originally dated 28 March 2025 and subsequent supplements from April, July and October 2025. The document, approved by the U...
Business Operations and StrategyDelistings and Listing Changes
HSBC to Fully Redeem US$1bn Contingent Convertible Securities in March 2026
Neutral
Feb 11, 2026
HSBC Holdings plc has elected to redeem in full its US$1bn 4.000% perpetual subordinated contingent convertible securities on 9 March 2026, at par value of US$1,000 per US$1,000 principal amount. Holders of record on 22 February 2026 will also rec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.