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HSBC Holdings (GB:HSBA)
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HSBC Holdings (HSBA) AI Stock Analysis

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GB:HSBA

HSBC Holdings

(LSE:HSBA)

Rating:82Outperform
Price Target:
1,089.00p
▲(13.35% 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
Financial Performance
HSBC reported a strong performance with underlying profit before tax approximately 10% higher than the consensus, driven by increased income.
Growth Prospects
There is upside potential to revenue from cost redeployment, which could drive 2027e ROTE to >17%.
Shareholder Returns
The bank announced a $3 billion buyback and a 10-cent dividend, showcasing confidence in its financial position.
Negative Factors
Market Uncertainty
Management emphasized ongoing uncertainties related to tariffs and the trajectory of US rates, leading to a maintained neutral rating.
Revenue Challenges
The time lag between revenue lost and revenue generated could be longer, potentially resulting in a pinch point in 2025.

HSBC Holdings (HSBA) vs. iShares MSCI United Kingdom ETF (EWC)

HSBC Holdings Business Overview & Revenue Model

Company DescriptionHSBC 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 MoneyHSBC 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: -0.19%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
HSBC's earnings call presented a generally positive outlook with significant revenue and profit growth, strong customer and deposit inflows, and successful strategic initiatives, despite some challenges in commercial real estate and impairments.
Q2-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Excluding notable items, revenue in the first half grew 6% to $35.4 billion, and profit before tax was 5% higher at $18.9 billion. Annualized return on tangible equity was 18.2%, up 1.2% year-on-year.
Customer and Deposit Growth
In Hong Kong, HSBC attracted 100,000 new-to-bank customers every month, and deposits grew by $83 billion year-on-year, reflecting strong customer growth.
Shareholder Distributions
A $0.10 dividend per share was announced alongside a share buyback of up to $3 billion, bringing total shareholder distributions for the half year to $9.5 billion.
Wealth Business Expansion
HSBC is seeing continued momentum in its Wealth business, capturing affluent and high net worth customers in Asia and the Middle East, with net new invested assets of $22 billion in the second quarter.
Organizational Simplification Progress
HSBC is on track to deliver around $1.5 billion of simplification savings by the end of 2026, with $0.4 billion realized in 2025.
Successful Exits of Non-Strategic Activities
HSBC announced the sale of several non-strategic businesses, including its operations in Uruguay and its U.K. life insurance subsidiary.
Negative Updates
Hong Kong Commercial Real Estate Challenges
Despite confidence in overall credit quality, there are short-term challenges in Hong Kong's commercial real estate market, impacting ECL guidance.
BoCom Impairment
A $1 billion impairment related to BoCom was recognized, impacting the associates line.
Guidance on Expected Credit Losses (ECL)
Full-year ECL guidance was revised to around 40 basis points due to increased impairments in Hong Kong Commercial Real Estate and other areas.
Company Guidance
During the call, HSBC provided comprehensive guidance on several financial metrics and strategic initiatives. The bank reported a 6% increase in revenue for the first half of 2025, reaching $35.4 billion, with profit before tax rising by 5% to $18.9 billion. The annualized return on tangible equity improved to 18.2%, up 1.2% year-on-year. HSBC highlighted strong growth in its Hong Kong market, attracting 100,000 new customers monthly, and a $6 billion increase in its U.K. loan book. The second quarter saw a $0.10 dividend per share and a share buyback of up to $3 billion, bringing total shareholder distributions to $9.5 billion. The bank maintained its full-year guidance for banking net interest income (NII) at around $42 billion, despite external challenges like HIBOR headwinds. HSBC is on track to deliver $1.5 billion in simplification savings by 2026, with $0.4 billion expected in 2025. The bank also revised its full-year expected credit loss (ECL) guidance to around 40 basis points. Additionally, HSBC is progressing with exits from non-strategic activities and is investing heavily in wealth centers in key markets such as Hong Kong and the U.K. The call emphasized the bank's strong financial position and its focus on simplifying operations while pursuing growth in strategic areas.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue163.70B143.29B129.51B76.17B73.95B63.28B
Gross Profit110.15B67.40B64.44B53.72B64.25B63.28B
EBITDA29.76B36.39B33.81B20.91B23.19B0.00
Net Income20.72B23.98B23.53B15.56B13.92B5.23B
Balance Sheet
Total Assets3.05T3.02T3.04T2.95T2.96T2.98T
Cash, Cash Equivalents and Short-Term Investments254.66B821.55B307.03B350.05B422.44B328.73B
Total Debt474.52B242.35B235.16B204.24B223.64B171.14B
Total Liabilities2.86T2.82T2.85T2.77T2.75T2.78T
Stockholders Equity190.81B184.97B185.33B177.83B198.25B196.44B
Cash Flow
Free Cash Flow0.0061.42B35.42B22.02B100.75B178.71B
Operating Cash Flow0.0065.31B39.11B26.43B104.31B182.22B
Investing Cash Flow0.00-76.56B-62.91B-34.48B27.54B-22.43B
Financing Cash Flow0.00-26.46B-17.56B-6.29B-10.79B-4.64B

HSBC Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price960.70
Price Trends
50DMA
914.76
Positive
100DMA
872.82
Positive
200DMA
827.68
Positive
Market Momentum
MACD
12.78
Negative
RSI
62.91
Neutral
STOCH
86.21
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 960.7 is above the 20-day moving average (MA) of 940.16, above the 50-day MA of 914.76, and above the 200-day MA of 827.68, indicating a bullish trend. The MACD of 12.78 indicates Negative momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 86.21 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
£166.73B12.4910.81%5.26%-6.07%-16.24%
68
Neutral
$17.69B11.8210.30%3.73%9.66%0.42%
$43.27B9.9710.16%2.14%
81
Outperform
£52.89B8.9510.02%1.90%13.03%60.72%
74
Outperform
£45.35B9.3314.07%4.48%7.03%25.89%
73
Outperform
£50.11B12.5910.21%4.01%-1.72%-8.62%
70
Outperform
£49.88B50.754.50%1.43%6.02%44.64%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HSBA
HSBC Holdings
960.70
338.14
54.31%
SCBFF
Standard Chartered
18.88
9.01
91.29%
GB:BARC
Barclays
373.80
155.69
71.38%
GB:LLOY
Lloyds Banking
83.04
27.64
49.89%
GB:LSEG
London Stock Exchange
9,512.00
-576.03
-5.71%
GB:NWG
NatWest Group
558.60
238.24
74.37%

HSBC Holdings Corporate Events

Stock Buyback
HSBC Executes Share Buy-Back to Enhance Shareholder Value
Positive
Aug 1, 2025

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.

Regulatory Filings and Compliance
HSBC Updates Share Capital and Voting Rights Information
Neutral
Jul 31, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
HSBC Releases Approved Base Prospectus Supplement
Neutral
Jul 31, 2025

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.

Stock BuybackBusiness Operations and Strategy
HSBC Announces $3 Billion Share Buy-Back Program
Positive
Jul 31, 2025

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.

Financial DisclosuresRegulatory Filings and Compliance
HSBC Holdings Releases 2025 Interim Report
Neutral
Jul 30, 2025

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.

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
HSBC Holdings Reports Decrease in Profit Amid Strategic Focus and Market Volatility
Neutral
Jul 30, 2025

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.

Business Operations and StrategyFinancial Disclosures
HSBC Holdings Announces Interim Results Discussion via Zoom
Neutral
Jul 30, 2025

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.

Executive/Board ChangesRegulatory Filings and Compliance
HSBC Executive Acquires Shares Under Incentive Plan
Positive
Jul 29, 2025

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.

Stock BuybackBusiness Operations and Strategy
HSBC Advances Share Buy-Back Program with Latest Repurchase
Positive
Jul 4, 2025

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.

Stock BuybackBusiness Operations and Strategy
HSBC Advances Share Buy-back Program with Latest Repurchases
Positive
Jul 3, 2025

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.

Stock BuybackBusiness Operations and Strategy
HSBC Continues Strategic Share Buy-Back Program
Positive
Jul 2, 2025

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.

Stock Buyback
HSBC Continues Share Buy-Back with Latest Repurchase
Neutral
Jul 1, 2025

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.

Regulatory Filings and Compliance
HSBC Updates Share Capital and Voting Rights Information
Neutral
Jun 30, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
HSBC Executive Acquires Shares Under Incentive Plan
Positive
Jun 30, 2025

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.

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.Date of analysis: Aug 19, 2025