HSBC Holdings (HSBA) AI Stock Analysis

• Market Cap: £175.21B
• Dividend Yield: 4.98%
• Average Volume (3M): 19.79M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.46
• Revenue Growth: -6.07%
• EPS Growth: -16.24%
• Country: UK
• Employees: 211,940
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.29
• Shares Outstanding: 17,292,578,000
• 10 Day Avg. Volume: 20,546,113
• 30 Day Avg. Volume: 19,792,028
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,001.98
• Price Target Upside: -1.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 82 Outperform
• Price Target: 1,089.00p ▲(7.31% Upside)

HSBC's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust profitability, strategic growth initiatives, and attractive valuation contribute to a favorable outlook. Technical indicators support a positive trend, although some challenges in specific markets are noted.

Positive Factors

Revenue Growth

The 6% revenue growth in the first half of 2025 indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing HSBC to invest in growth opportunities and return capital to shareholders.

Wealth Business Expansion

The expansion in the Wealth business, particularly in Asia and the Middle East, positions HSBC to capture affluent clients, boosting future revenue streams.

Negative Factors

Regulatory Challenges

Regulatory fines highlight compliance issues, potentially leading to increased scrutiny and operational costs, affecting long-term business operations.

Commercial Real Estate Exposure

Exposure to Hong Kong's commercial real estate market poses risks due to potential asset devaluation and increased credit losses, impacting profitability.

Impairment Losses

Significant impairment losses can strain financial results and indicate potential weaknesses in asset quality, affecting long-term financial health.

HSBC Holdings Business Overview & Revenue Model

Company Description

HSBC Holdings plc is a leading global banking and financial services organization, headquartered in London, England. It operates in various sectors including retail banking and wealth management, commercial banking, global banking and markets, and global private banking. HSBC serves millions of customers worldwide by providing a wide range of core products and services, such as personal and commercial banking, investment banking, asset management, and insurance.

How the Company Makes Money

HSBC generates revenue primarily through net interest income, fees, and commissions. The bank earns net interest income by lending money at higher rates than it pays on deposits. Key revenue streams include retail banking services, where it charges fees for account maintenance, transaction processing, and credit products, as well as wealth management services that generate fees from investment products and advisory services. Commercial banking contributes significantly through lending to businesses and offering trade finance solutions, while global banking and markets focus on investment banking and capital markets activities, earning fees from underwriting, advisory services, and trading commissions. HSBC also benefits from strategic partnerships and collaborations that enhance its service offerings, particularly in regions with high growth potential, thus contributing to its overall earnings.

HSBC Holdings Financial Statement Overview

Summary

HSBC demonstrates strong financial performance with consistent revenue growth, robust profitability, and solid cash flow generation. The balance sheet is stable with minimal leverage, although there is some equity volatility.

Income Statement

HSBC has shown consistent revenue growth with a notable increase from the previous year, indicating positive growth trends. The gross profit margin is healthy at 100%, typical for banking as revenue equals gross profit. The net profit margin is strong, reflecting effective cost management. However, the absence of EBIT and EBITDA data limits analysis of operating efficiency.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating financial stability. There is no reported debt in the latest year, reducing financial leverage risks. However, fluctuations in shareholder equity and assets suggest potential volatility in financial structure.

Cash Flow

Operating cash flow is robust compared to net income, highlighting strong cash generation capabilities. Free cash flow has grown significantly, underscoring financial flexibility. The cash flow to net income ratios are favorable, indicating efficient cash usage to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.70B	143.29B	129.51B	76.17B	73.95B	63.28B
Gross Profit	110.15B	67.40B	64.44B	53.72B	64.25B	63.28B
EBITDA	29.76B	36.39B	33.81B	20.91B	23.19B	0.00
Net Income	20.72B	23.98B	23.53B	15.56B	13.92B	5.23B
Balance Sheet
Total Assets	3.05T	3.02T	3.04T	2.95T	2.96T	2.98T
Cash, Cash Equivalents and Short-Term Investments	254.66B	821.55B	307.03B	350.05B	422.44B	328.73B
Total Debt	474.52B	242.35B	235.16B	204.24B	223.64B	171.14B
Total Liabilities	2.86T	2.82T	2.85T	2.77T	2.75T	2.78T
Stockholders Equity	190.81B	184.97B	185.33B	177.83B	198.25B	196.44B
Cash Flow
Free Cash Flow	0.00	61.42B	35.42B	22.02B	100.75B	178.71B
Operating Cash Flow	0.00	65.31B	39.11B	26.43B	104.31B	182.22B
Investing Cash Flow	0.00	-76.56B	-62.91B	-34.48B	27.54B	-22.43B
Financing Cash Flow	0.00	-26.46B	-17.56B	-6.29B	-10.79B	-4.64B

HSBC Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1014.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1014.8 is above the 20-day moving average (MA) of 974.47, above the 50-day MA of 948.18, and above the 200-day MA of 851.00, indicating a bullish trend. The MACD of 19.18 indicates Negative momentum. The RSI at 70.55 is Negative, neither overbought nor oversold. The STOCH value of 89.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSBA.

HSBC Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBA	82 Outperform	£175.21B	13.08	10.81%	4.98%	-6.07%	-16.24%
BARC	81 Outperform	52.98B	8.91	8.78%	1.87%	13.03%	60.72%
STAN	75 Outperform	32.52B	9.84	7.96%	2.17%	-1.87%	55.55%
NWG	74 Outperform	42.24B	8.70	12.20%	4.76%	7.03%	25.89%
LLOY	73 Outperform	49.24B	12.42	9.67%	4.01%	-1.72%	-8.62%
LSEG	59 Neutral	44.58B	45.91	2.98%	1.59%	6.02%	44.64%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

HSBC Holdings Corporate Events

HSBC Executes Share Buy-Back to Enhance Shareholder Value

HSBC Holdings plc announced the repurchase and cancellation of approximately 4.9 million ordinary shares as part of its ongoing buy-back program. This move, involving transactions on both the London and Hong Kong Stock Exchanges, aims to optimize the company’s capital structure and enhance shareholder value, with implications for its issued share capital and voting rights.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £83.30 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Updates Share Capital and Voting Rights Information

HSBC Holdings PLC announced that as of July 30, 2025, its issued share capital consists of 17,420,706,187 ordinary shares, with no shares held in treasury. This total number of voting rights is crucial for shareholders to determine their notification requirements under relevant financial regulations, impacting their stake and governance participation in the company.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.20 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Releases Approved Base Prospectus Supplement

HSBC Holdings plc has announced the publication of a base prospectus supplement, which has been approved by the Financial Conduct Authority. This document is part of their ongoing issuance programs and is now available for public viewing. The release of this supplement is a strategic move to enhance HSBC’s financial offerings and maintain its strong position in the global banking industry, potentially impacting investors and stakeholders by providing updated information on its financial instruments.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £9.60 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Announces $3 Billion Share Buy-Back Program

HSBC Holdings plc has announced a share buy-back program, aiming to repurchase up to US$3 billion of its ordinary shares to reduce its outstanding shares. This strategic move, involving non-discretionary agreements with Merrill Lynch International, will take place across various stock exchanges, including the London Stock Exchange and the Hong Kong Stock Exchange, and is expected to impact the company’s market positioning by potentially increasing shareholder value.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Holdings Releases 2025 Interim Report

HSBC Holdings plc has released its Interim Report for the half-year ended 30 June 2025, which is now available for inspection through the National Storage Mechanism and the company’s website. This report provides essential regulated information, reflecting the company’s compliance with financial disclosure requirements, and will be mailed to shareholders who prefer hard copies by 22 August 2025.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.90 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Holdings Reports Decrease in Profit Amid Strategic Focus and Market Volatility

HSBC Holdings reported a decrease in profit before tax by $5.7 billion to $15.8 billion in the first half of 2025, primarily due to dilution and impairment losses related to its associate Bank of Communications Co., Limited, and the non-recurrence of gains from previous business disposals. Despite these challenges, the company saw growth in revenue from Wealth, Foreign Exchange, and Debt and Equity Markets, driven by volatile market conditions. HSBC remains focused on its strategic goals, aiming for a mid-teens return on tangible equity and managing economic uncertainties while continuing to invest in technology and organizational simplification. The board approved a second interim dividend and plans a share buy-back, signaling confidence in future performance.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Holdings Announces Interim Results Discussion via Zoom

HSBC Holdings announced an upcoming Zoom meeting for investors and analysts to discuss its interim results for 2025, featuring presentations by Group Chief Executive Georges Elhedery and Group Chief Financial Officer Pam Kaur. This meeting underscores HSBC’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Executive Acquires Shares Under Incentive Plan

Ian Stuart, Chief Executive of HSBC UK Bank plc, has acquired 15 ordinary shares of HSBC Holdings under the company’s UK Share Incentive Plan. This transaction, disclosed in compliance with the UK Market Abuse Regulation, reflects ongoing managerial investment in the company, potentially signaling confidence in its market position and future prospects.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Advances Share Buy-Back Program with Latest Repurchase

HSBC Holdings PLC announced the repurchase and cancellation of a significant number of its ordinary shares as part of its ongoing buy-back program. This move, involving transactions on both the London and Hong Kong stock exchanges, is part of a broader strategy to manage its share capital and enhance shareholder value. The cancellation of shares will adjust the company’s issued ordinary share capital, impacting shareholder calculations under regulatory guidelines.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Advances Share Buy-back Program with Latest Repurchases

HSBC Holdings PLC announced the repurchase and cancellation of 649,132 ordinary shares on UK venues and 6,400 shares on the Hong Kong Stock Exchange as part of its ongoing buy-back program. This action, part of a larger initiative commenced in May 2025, aims to optimize the company’s capital structure and potentially enhance shareholder value. The repurchase program has so far involved a total of 198,712,771 shares, amounting to approximately US$2,319.2 million, reflecting HSBC’s strategic focus on managing its equity base effectively.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Continues Strategic Share Buy-Back Program

HSBC Holdings PLC announced the repurchase and cancellation of 3,219 ordinary shares as part of its ongoing buy-back program, initially announced on May 6, 2025. This transaction is part of a larger effort, with a total of 198,057,239 shares repurchased for approximately US$2,311.3 million, aimed at reducing the company’s share capital and potentially increasing shareholder value. The completion of these transactions impacts the company’s issued ordinary share capital, now consisting of 17,477,810,898 shares with voting rights, and reflects HSBC’s strategic financial management to enhance shareholder returns.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Continues Share Buy-Back with Latest Repurchase

HSBC Holdings PLC announced the repurchase and cancellation of 102,144 of its ordinary shares from Morgan Stanley as part of its ongoing buy-back program. This transaction is part of a larger buy-back initiative that began in May 2025, with the company having repurchased over 198 million shares, impacting its share capital and potentially influencing shareholder interests and market positioning.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Updates Share Capital and Voting Rights Information

HSBC Holdings plc announced that as of 27 June 2025, its issued share capital consisted of 17,477,916,261 ordinary shares, with no shares held in treasury. This update is significant for shareholders as it provides the total number of voting rights, which is crucial for determining notification requirements under financial regulations in the UK and Hong Kong.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Executive Acquires Shares Under Incentive Plan

Ian Stuart, Chief Executive of HSBC UK Bank plc, acquired 17 ordinary shares of HSBC Holdings under the UK Share Incentive Plan. This transaction, disclosed in compliance with the UK version of the EU Market Abuse Regulation, reflects ongoing managerial engagement with the company’s equity, potentially signaling confidence in the company’s future performance.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £8.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.