HSBC Holdings (HSBA) AI Stock Analysis

• Market Cap: £228.77B
• Dividend Yield: 4.27%
• Average Volume (3M): 24.35M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.48
• Revenue Growth: -11.86%
• EPS Growth: -24.31%
• Country: UK
• Employees: 211,940
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.24
• Shares Outstanding: 17,175,240,000
• 10 Day Avg. Volume: 24,642,152
• 30 Day Avg. Volume: 24,349,859
• PEG Ratio: -15.12
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 28.78
• 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: £1,369.29
• Price Target Upside: 2.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.61
• Revenue Forecast (FY): £71.75B

• Rating: 80 Outperform
• Price Target: 1,496.00p ▲(12.31% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

HSBC's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis supports a positive outlook, while valuation metrics are reasonable. Corporate events further bolster confidence in the company's future.

Positive Factors

Hang Seng privatization & synergies

Completing the Hang Seng privatization is a structural change that improves capital efficiency by removing minority capital drag and creates recurring synergy levers. Realized capital released and expected $0.9bn of synergies through 2028 should sustainably bolster CET1 conversion and long‑term ROE.

Clear medium-term financial targets

Management has set explicit multi-year targets for revenue growth, ROTE and payout ratio, creating disciplined financial steering. These commitments align cost, capital and allocation plans, providing a durable framework for organic capital generation and investor expectations across the 2026–2028 planning horizon.

Wealth momentum and deposit funding strength

Strong wealth inflows and fee growth, alongside 5% deposit growth, indicate durable, low‑cost funding and diversified fee streams. The combination reduces NII sensitivity to wholesale funding, supports margins over time, and makes fee-recurring businesses a steady contributor to earnings and resilience across cycles.

Negative Factors

Elevated credit-cost guidance

Higher expected credit losses are a persistent headwind to sustainable profitability. A multi-year ECL rate near 40bps raises baseline provisioning, compresses net income and constrains capital generation, reducing the margin for additional credit shocks and limiting steady upward pressure on return metrics.

Concentrated Hong Kong CRE stress

Persistent pockets of Hong Kong commercial real estate stress represent a structural asset-quality risk. Concentration in CRE with elevated LTVs can produce recurring provisioning and slower loan growth locally, increasing RWAs and pressuring returns and capital ratios in the regional footprint over multiple quarters.

Moderate-to-elevated leverage and data gaps

While sizeable equity provides a buffer, moderate‑to‑elevated leverage typical of large banks increases sensitivity to credit and market stress. Reported data gaps for 2025 limit visibility on recent leverage and returns trends, complicating capital planning and making it harder to assess sustainable solvency and allocation flexibility.

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 banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions. This segment serves personal banking and high net worth individuals. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities. It serves government, corporate and institutional clients, and private investors. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

How the Company Makes Money

HSBC generates revenue primarily through interest income and non-interest income. Key revenue streams include interest earned on loans and advances to customers, which constitutes a significant portion of its income. Additionally, the bank earns fees and commissions from various services, including wealth management, investment banking, and transaction services. The bank's global presence allows it to benefit from diverse markets, thus enhancing its earnings potential. Significant partnerships with corporations and financial institutions, along with a focus on digital banking and innovation, further contribute to its revenue generation. Factors such as interest rate fluctuations, regulatory changes, and economic conditions in different regions also play a critical role in influencing its financial performance.

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 shows stability with minimal leverage, though some equity volatility is noted.

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 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

• Technical Analysis Sentiment: Positive
• Last Price: 1332.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1332 is above the 20-day moving average (MA) of 1306.00, above the 50-day MA of 1251.54, and above the 200-day MA of 1040.65, indicating a bullish trend. The MACD of 31.37 indicates Negative momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 77.61 is Neutral, 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	80 Outperform	£228.77B	15.17	8.88%	4.27%	-11.86%	-24.31%
INVP	68 Neutral	£11.52B	8.64	12.21%	6.78%	-2.34%	2.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LLOY	67 Neutral	£58.86B	14.59	8.08%	3.41%	-22.85%	-21.12%
NWG	64 Neutral	£47.86B	9.10	14.96%	3.85%	4.27%	26.21%
BARC	61 Neutral	£60.24B	10.35	9.72%	1.50%	14.18%	46.12%
STAN	58 Neutral	£39.04B	12.36	10.45%	1.70%	-4.35%	21.86%

HSBC Holdings Corporate Events

HSBC Files 2025 Form 20-F and Publishes Annual Report Online

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 via the company’s website and has also been submitted to the UK’s National Storage Mechanism, underscoring HSBC’s ongoing regulatory compliance and transparency for global stakeholders.

The availability of the Form 20-F enhances information access for shareholders, analysts, and regulators who monitor HSBC’s performance and risk profile. By ensuring simultaneous publication in key jurisdictions, HSBC reinforces its positioning as a globally regulated institution and supports informed investment decisions in its securities.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £15.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Discloses Share Sales by Senior Executives Under Market Abuse Rules

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 London at an aggregated price of £13.766 per share.

Group Chief Information Officer Stuart Riley disposed of 124,586 HSBC shares on the same day at an aggregated price of £13.762 per share. The transactions, executed on the London Stock Exchange’s main market, reflect routine insider dealing disclosures required for transparency to investors and regulators.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £15.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Updates Base Prospectus Supplement for Fixed-Income Issuance

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 UK Financial Conduct Authority and filed with the National Storage Mechanism, underpins HSBC’s ongoing fixed-income issuance programmes and provides investors with updated disclosure for the group’s capital markets funding activities.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £15.40 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC to Fully Redeem US$1bn Contingent Convertible Securities in March 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 receive accrued but unpaid interest from 9 September 2025 up to but excluding the redemption date, after which interest will cease to accrue.

Investors are instructed to surrender their securities to HSBC Bank USA’s New York office for payment processing in line with the indenture terms. HSBC has also requested that these contingent convertible securities be delisted from the Global Exchange Market of Euronext Dublin on the redemption date, simplifying its capital structure and removing the instruments from public trading.

The most recent analyst rating on (GB:HSBA) stock is a Hold with a £11.90 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Confirms Total Voting Rights at Over 17.1 Billion Shares

HSBC Holdings plc has confirmed that as of 29 January 2026 its issued share capital consists of 17,175,239,862 ordinary shares of US$0.50 each, with no shares held in treasury, resulting in an identical total number of voting rights. The disclosure, made in line with UK and Hong Kong regulatory requirements, provides investors with the official denominator for calculating whether their shareholdings trigger mandatory reporting of interests or changes in interests, reinforcing transparency in HSBC’s shareholder base and compliance with market disclosure rules.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1429.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Completes Court-Approved Privatisation of Hang Seng Bank and Delisting in Hong Kong

HSBC’s Asia-Pacific arm, The Hongkong and Shanghai Banking Corporation Limited, has completed the court-sanctioned privatisation of Hang Seng Bank Limited via a scheme of arrangement under Hong Kong’s Companies Ordinance. All conditions of the scheme have been satisfied, making the transaction effective on 26 January 2026, with Hang Seng Bank’s shares to be withdrawn from trading on the Hong Kong Stock Exchange at 4:00 p.m. on 27 January 2026 and cash consideration to be paid to registered scheme shareholders no later than seven business days after the effective date. The move will take Hang Seng Bank private and consolidate HSBC’s ownership and control of the Hong Kong lender, simplifying the group’s structure in its key Asia franchise and removing Hang Seng from public markets, with scheme consideration being distributed by cheque and electronic transfer to entitled shareholders.

The most recent analyst rating on (GB:HSBA) stock is a Hold with a £1329.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Wins Court Approval to Privatise Hang Seng Bank and Delist Shares

HSBC’s Asia-Pacific arm, The Hongkong and Shanghai Banking Corporation, is proceeding with the privatisation of its Hong Kong affiliate Hang Seng Bank via a court-sanctioned scheme of arrangement that involves a reduction of Hang Seng’s issued share capital. The High Court has approved the scheme and related capital reduction, and subject to final procedural conditions, the transaction is expected to become effective on 26 January 2026, after which Hang Seng Bank’s shares are set to be delisted from the Hong Kong Stock Exchange at 4:00 p.m. on 27 January 2026, consolidating HSBC’s control and removing minority shareholders from the market.

The most recent analyst rating on (GB:HSBA) stock is a Hold with a £1329.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Grants New Conditional Share Awards to Employees Under Global Purchase Plan

HSBC Holdings plc has granted conditional share awards to employees under its International Employee Share Purchase Plan, covering a total of 351,143.02986 ordinary shares listed in London and Hong Kong. The awards, granted at nil purchase price and without performance or clawback conditions due to the plan’s all-employee nature, will vest over 2 years and 9 months, and sit within a broader 10% capital limit for all employee share schemes, indicating continued use of equity-based incentives while maintaining substantial headroom for future grants.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £13.20 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Wins Shareholder Backing to Privatise and Delist Hang Seng Bank

HSBC, through its Asia-Pacific arm, has moved a step closer to fully privatising Hang Seng Bank after shareholders approved a court-sanctioned scheme of arrangement and related capital changes at both a court meeting and a general meeting held on 8 January 2026. The scheme, which covers the remaining 36.57% of Hang Seng Bank shares not already owned by HSBC Asia Pacific, met the required approval thresholds under Hong Kong company law and the Takeovers Code, paving the way for the bank’s delisting from the Hong Kong Stock Exchange, expected at 4:00 p.m. on 27 January 2026, and for the closing of Hang Seng Bank’s register of members from 20 January 2026 to determine entitlements to the scheme consideration. The move will give HSBC full control over Hang Seng Bank’s equity structure, simplifying group ownership and potentially reshaping the bank’s capital market profile and governance for remaining stakeholders.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1240.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Confirms Total Voting Rights Following Share Capital Update

HSBC Holdings plc has reported that, as of 29 December 2025, its issued share capital consists of 17,175,239,862 ordinary shares with a nominal value of US$0.50 each, and that no shares are held in treasury. As a result, the total number of voting rights in the company is 17,175,239,862, a figure that shareholders should use as the reference denominator when assessing whether they must disclose interests or changes in interests under relevant UK and Hong Kong securities disclosure regulations.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1240.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Senior Independent Director Ann Godbehere to Retire at 2026 AGM

HSBC Holdings plc has announced that its Senior Independent Director, Ann Godbehere, will step down from the board and retire at the company’s 2026 annual general meeting, concluding a tenure in which she played a key role in the bank’s governance. The move, which follows the completion of the group’s chair search, is described as being for personal and lifestyle reasons, with Chair Brendan Nelson and Godbehere both paying tribute to her service; she will continue to receive fees for her roles until retirement but will not receive any payment for loss of office, and the bank confirms there are no additional matters relating to her departure that need to be brought to shareholders’ attention.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1240.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Executives Receive Additional Shares Through Dividend Reinvestment Plan

HSBC Holdings has disclosed share transactions by senior executives in line with UK market abuse regulations, confirming that additional ordinary shares were acquired through the automatic reinvestment of the bank’s third interim dividend for 2025. Co-Chief Executive for Asia and the Middle East, David Liao, received 4,862 shares and International Wealth and Premier Banking Chief Executive, Barry O’Byrne, received 12 shares at a price of £11.43115 per share, underscoring the ongoing alignment of management incentives with shareholder returns through dividend-linked share plan arrangements.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1240.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Announces Transition in Group Company Secretary Role

HSBC Holdings plc has announced a change in its company secretariat, with joint company secretaries Aileen Taylor and Hannah Ashdown set to step down from their roles at the end of 31 December 2025. Taylor will remain in her position as Group Chief People and Governance Officer, while, as previously announced, Angela McEntee will assume the role of Group Company Secretary from 1 January 2026, signaling a planned and orderly transition in the group’s governance and administrative leadership structure.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1300.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Moves to Privatize Hang Seng Bank for Strategic Realignment

HSBC Asia Pacific has announced plans to privatize its subsidiary, Hang Seng Bank Limited, via a scheme of arrangement under Section 673 of the Companies Ordinance, which will result in the withdrawal of Hang Seng Bank shares from the stock exchange listing. This move, aimed at consolidating HSBC’s holdings and operations in the region, will see HSBC Asia Pacific securing 100% ownership of Hang Seng Bank shares, marking a significant step in aligning strategic goals and streamlining group operations. Stakeholders are expected to benefit from enhanced operational efficiency, while the industry presence of HSBC in Hong Kong and Asia-Pacific is likely to strengthen further.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1300.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.

HSBC Announces Third Interim Dividend for 2025

HSBC Holdings PLC announced a third interim dividend for the financial year ending December 31, 2025, set at US$0.10 per ordinary share. The dividend, payable in multiple currencies, reflects the company’s ongoing commitment to returning value to shareholders and may influence market perceptions of its financial health and strategic direction.

The most recent analyst rating on (GB:HSBA) stock is a Buy with a £1221.00 price target. To see the full list of analyst forecasts on HSBC Holdings stock, see the GB:HSBA Stock Forecast page.