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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)

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Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
1,221.00p
â–˛(14.69% Upside)
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
Strong Financial Performance
Revenue growth and a high RoTE indicate strong financial health and effective strategic execution, supporting long-term stability.
Wealth Management Growth
Significant growth in wealth management enhances revenue diversification and capitalizes on market opportunities, particularly in Asia.
Strategic Business Exits
Exiting non-core markets aligns resources with strategic priorities, improving focus and operational efficiency for sustainable growth.
Negative Factors
Madoff Litigation Provision
Significant legal provisions can impact financial flexibility and profitability, posing a risk to long-term financial health.
Challenges in Hong Kong CRE
Rising loan impairments in Hong Kong's commercial real estate sector could strain asset quality and increase credit risk exposure.
Potential U.S. Credit Market Risks
Exposure to U.S. credit market risks could lead to increased volatility and potential financial losses, affecting long-term stability.

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

HSBC Holdings Business Overview & Revenue Model

Company DescriptionHSBC Holdings plc is a global banking and financial services organization headquartered in London, United Kingdom. As one of the largest banking and financial services institutions in the world, HSBC operates in various sectors including retail banking and wealth management, commercial banking, global banking and markets, and global private banking. The company offers a wide range of products and services such as personal banking, credit cards, mortgages, investment products, trade finance, and treasury and cash management services.
How the Company Makes MoneyHSBC 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 Earnings Call Summary

Earnings Call Date:Oct 28, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for HSBC with notable revenue growth, strategic exits, and significant achievements in wealth management, offset by some legal and credit challenges.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
HSBC reported total revenues of $17.9 billion, marking a growth of $500 million. The bank's annualized RoTE was 17.6% year-to-date excluding notable items.
Successful Wealth Management Growth
Wealth management witnessed a 29% growth in fee and other income, with net new invested assets of $29 billion, primarily driven by Asian markets.
Strategic Business Exits
HSBC announced exits from HSBC Malta and Retail Banking in Sri Lanka, with a total of 11 exits announced so far this year, aligning with strategic goals.
Positive Deposit Growth
Customer deposit balances reached $1.7 trillion, with an increase of $86 billion over the last 12 months, reflecting strong deposit growth momentum.
Upgraded Financial Targets
HSBC upgraded its 2025 banking NII target to $43 billion or better, and its 2025 RoTE target to mid-teens or better, demonstrating confidence in future performance.
Negative Updates
Madoff Litigation Provision
HSBC provisioned $1.1 billion related to Madoff litigation, impacting its legal expenses for the quarter.
Challenges in Hong Kong Commercial Real Estate
Stage III loan ratio for Hong Kong CRE increased from 16% to 20%, though impairment charges were lower than the previous quarter.
Potential Impact of U.S. Credit Market Risks
Concerns were raised about exposure to non-bank financial institutions and potential credit risks in the U.S. market.
Company Guidance
During the third quarter of 2025, HSBC Holdings plc reported strong financial performance, highlighted by a total revenue increase of $500 million to $17.9 billion and an annualized return on tangible equity (RoTE) of 17.6% year-to-date, excluding notable items. The bank's customer deposit balances rose to $1.7 trillion, with a $86 billion increase, including held-for-sale balances. HSBC announced an upgrade to its 2025 guidance, projecting banking net interest income (NII) to reach $43 billion or better, and RoTE to be in the mid-teens or higher. The quarter also saw a 29% growth in Wealth fee and other income to $2.7 billion, with net new invested assets totaling $29 billion. The bank's Common Equity Tier 1 (CET1) capital ratio stood at 14.5%, and it maintained a 50% dividend payout ratio target for 2025. HSBC continued its strategic exits from non-core businesses, including HSBC Malta and Retail Banking in Sri Lanka, while advancing with a strategic review of its Egyptian retail banking operations. The bank remains committed to a 3% cost growth target by 2025 compared to 2024, and has realized $1 billion in annualized simplification savings year-to-date.

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, though some equity volatility is noted. Overall, the company is well-positioned within the banking sector.
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 Revenue138.70B143.29B129.51B76.17B73.95B63.28B
Gross Profit69.07B67.40B64.44B53.72B64.25B63.28B
EBITDA28.79B36.39B33.81B20.91B23.19B0.00
Net Income18.92B23.98B23.53B15.56B13.92B5.23B
Balance Sheet
Total Assets3.21T3.02T3.04T2.95T2.96T2.98T
Cash, Cash Equivalents and Short-Term Investments246.36B821.55B299.57B350.05B422.44B308.57B
Total Debt129.70B242.35B163.94B153.66B169.53B171.14B
Total Liabilities3.01T2.82T2.85T2.76T2.75T2.78T
Stockholders Equity192.55B184.97B185.33B177.83B198.25B196.44B
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 Price1064.60
Price Trends
50DMA
1045.70
Positive
100DMA
1004.13
Positive
200DMA
926.14
Positive
Market Momentum
MACD
5.25
Positive
RSI
52.36
Neutral
STOCH
42.80
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 1064.6 is below the 20-day moving average (MA) of 1071.47, above the 50-day MA of 1045.70, and above the 200-day MA of 926.14, indicating a neutral trend. The MACD of 5.25 indicates Positive momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 42.80 is Neutral, 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
80
Outperform
ÂŁ184.92B14.868.88%4.72%-11.86%-24.31%
78
Outperform
ÂŁ56.48B9.739.72%1.62%14.18%46.12%
77
Outperform
$37.11B11.0310.45%1.86%-4.35%21.86%
75
Outperform
ÂŁ52.44B15.468.08%3.48%-22.85%-21.12%
75
Outperform
ÂŁ46.96B8.8914.96%4.03%4.27%26.21%
70
Outperform
ÂŁ49.73B51.744.50%1.60%6.02%44.64%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HSBA
HSBC Holdings
1,064.60
354.10
49.84%
GB:STAN
Standard Chartered
1,656.00
692.67
71.90%
GB:BARC
Barclays
440.00
182.64
70.97%
GB:LLOY
Lloyds Banking
94.32
43.91
87.11%
GB:LSEG
London Stock Exchange
8,500.00
-2,555.38
-23.11%
GB:NWG
NatWest Group
621.00
232.40
59.80%

HSBC Holdings Corporate Events

Delistings and Listing ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
HSBC Proposes Privatization of Hang Seng Bank with Regulatory Consents
Neutral
Nov 27, 2025

HSBC Holdings plc has announced a proposal for the privatization of Hang Seng Bank Limited by its subsidiary, The Hongkong and Shanghai Banking Corporation Limited, through a scheme of arrangement. The proposal has received relevant consents from the Executive under the Takeovers Code, allowing HSBC to engage in certain securities dealings and lending activities related to Hang Seng Bank without breaching regulatory requirements. This move is part of HSBC’s strategic operations in the Asia-Pacific region, potentially impacting its market positioning and stakeholder interests by streamlining operations and enhancing control over Hang Seng Bank.

Delistings and Listing ChangesBusiness Operations and Strategy
HSBC Proceeds with Hang Seng Bank Privatization Proposal
Neutral
Nov 27, 2025

HSBC Holdings PLC, along with its subsidiaries HSBC Asia Pacific and Hang Seng Bank, has announced an update on the proposed privatization of Hang Seng Bank through a scheme of arrangement. This move involves the withdrawal of Hang Seng Bank’s shares from listing, with the scheme document expected to be dispatched by December 17, 2025. The announcement highlights the ongoing preparations for a High Court hearing to seek approval for the scheme, which is contingent on satisfying certain conditions. This proposal is significant for HSBC’s strategic positioning in the Asia-Pacific market and could impact shareholders and potential investors, who are advised to exercise caution.

Stock BuybackRegulatory Filings and Compliance
HSBC Holdings Cancels Over 26 Million Shares, Adjusts Voting Rights
Neutral
Nov 6, 2025

HSBC Holdings PLC announced the cancellation of 26,782,800 ordinary shares that were previously repurchased on the Hong Kong Stock Exchange as part of a buy-back program. This cancellation reduces the total number of shares in issue to 17,175,239,862, which also represents the total number of voting rights. This adjustment in share capital and voting rights is significant for shareholders as it affects the calculations for notifying changes in their interests under regulatory guidelines.

Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants Conditional Share Awards to Employees
Neutral
Nov 5, 2025

HSBC Holdings plc announced the grant of conditional awards to employees and former employees for 501,618 ordinary shares under the HSBC Share Plan 2011. These awards are part of a deferred bonus scheme to meet UK regulatory requirements, with vesting periods spanning up to seven years for certain risk takers. The initiative reflects HSBC’s commitment to aligning employee incentives with strategic goals and regulatory compliance, potentially impacting its operational efficiency and stakeholder engagement.

Regulatory Filings and Compliance
HSBC UK Chief Executive Exercises Share Options
Positive
Nov 4, 2025

Ian Stuart, Chief Executive of HSBC UK Bank plc, exercised his option to purchase 11,419 ordinary shares in HSBC Holdings plc at a price of £2.627 per share. This transaction, disclosed under the UK version of the EU Market Abuse Regulation, highlights the ongoing engagement of senior management with the company’s equity, potentially signaling confidence in the company’s future performance.

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

HSBC Holdings PLC announced that as of October 30, 2025, its issued share capital consists of 17,201,971,220 ordinary shares, with no shares held in treasury. This update on voting rights is significant for shareholders as it impacts their calculations for notifying changes in their interests, in compliance with the UK Financial Conduct Authority’s rules and the Hong Kong Securities and Futures Ordinance.

Regulatory Filings and Compliance
HSBC’s CIO Sells Shares in Compliance with Market Regulations
Neutral
Oct 30, 2025

Stuart Riley, the Group Chief Information Officer of HSBC Holdings PLC, sold 22,404 ordinary shares of the company on October 29, 2025. The shares were sold on the London Stock Exchange at a price of £10.69 each, totaling £239,498.76. This transaction was disclosed in compliance with the UK version of the EU Market Abuse Regulation, highlighting transparency in the company’s managerial transactions.

Delistings and Listing ChangesBusiness Operations and Strategy
HSBC Proposes Privatization of Hang Seng Bank
Neutral
Oct 30, 2025

HSBC Holdings has announced a proposal for the privatization of Hang Seng Bank Limited by The Hongkong and Shanghai Banking Corporation Limited through a scheme of arrangement. The timeline for the dispatch of the scheme document has been extended to 17 December 2025, with the proposal expected to be completed in the first quarter of 2026. This move is significant for HSBC’s strategic positioning in the Asia Pacific market, potentially impacting stakeholders by altering the listing status of Hang Seng Bank shares.

Private Placements and FinancingRegulatory Filings and Compliance
HSBC Publishes New Base Prospectus Supplement
Neutral
Oct 29, 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 HSBC’s ongoing issuance programs and is available for viewing online. The release of this supplement is a significant step in HSBC’s financial operations, potentially impacting its market positioning and providing stakeholders with updated financial information.

Stock BuybackBusiness Operations and Strategy
HSBC Concludes $3 Billion Share Buy-Back Program
Positive
Oct 24, 2025

HSBC Holdings PLC has concluded its share buy-back program, purchasing a total of 227,341,968 ordinary shares for cancellation, amounting to approximately US$3 billion. The buy-back involved transactions on both the UK Venues and the Hong Kong Stock Exchange, with the latter’s share cancellation process still pending. This strategic move is expected to impact the company’s capital structure and shareholder value, reflecting HSBC’s commitment to returning capital to its shareholders.

Stock BuybackBusiness Operations and Strategy
HSBC Executes Share Buy-Back to Optimize Capital Structure
Neutral
Oct 21, 2025

HSBC Holdings PLC has executed a share buy-back program, purchasing 800 of its ordinary shares on the Hong Kong Stock Exchange as part of a broader buy-back initiative announced earlier in the year. This move is part of the company’s strategy to manage its capital structure effectively, having repurchased over 226 million shares for nearly $3 billion since the program’s inception. The cancellation of these shares will adjust the company’s share capital, impacting shareholder calculations under regulatory guidelines.

Stock Buyback
HSBC Announces Significant Share Buy-Back and Cancellation
Neutral
Oct 10, 2025

HSBC Holdings PLC announced the repurchase and cancellation of a significant number of its ordinary shares as part of a buy-back program initiated on 31 July 2025. The company has repurchased 180,042,451 shares for approximately US$2,370.9 million, impacting its share capital and potentially influencing shareholder interest and market positioning.

Business Operations and Strategy
HSBC Grants Conditional Share Awards to Employees
Positive
Oct 10, 2025

HSBC Holdings PLC announced the grant of conditional awards to employees under its International Employee Share Purchase Plan, allowing them to subscribe for a total of 321,679 ordinary shares. This initiative, which does not include performance conditions or clawback provisions, aims to enhance employee engagement and align their interests with the company’s long-term success, potentially impacting the company’s operational dynamics and market positioning.

Stock BuybackBusiness Operations and Strategy
HSBC Advances Share Buy-Back Program with Latest Repurchase
Positive
Oct 9, 2025

HSBC Holdings plc announced the repurchase and cancellation of 4,602,400 of its ordinary shares across UK and Hong Kong exchanges as part of its ongoing share buy-back program initiated on 31 July 2025. This move is part of a broader strategy to enhance shareholder value, having repurchased a total of 176,193,950 shares for approximately US$2,319.7 million. The repurchase impacts the company’s share capital and voting rights, with the current issued ordinary share capital standing at 17,247,771,238 shares. The cancellation process on the Hong Kong Stock Exchange takes longer, and a further announcement will be made once completed.

Delistings and Listing ChangesM&A Transactions
HSBC Proposes Privatization of Hang Seng Bank
Neutral
Oct 9, 2025

HSBC Holdings has announced a proposal to privatize Hang Seng Bank Limited through a scheme of arrangement, which involves the cancellation of Hang Seng Bank shares in exchange for cash consideration. This move aims to make Hang Seng Bank a wholly-owned subsidiary of HSBC Holdings, with plans to withdraw its listing from the Hong Kong Stock Exchange. The proposal is expected to be accretive to HSBC’s earnings per share by removing minority interest deductions and is supported by internal financial resources. HSBC intends to maintain Hang Seng Bank’s legacy and community involvement in Hong Kong, ensuring it retains its brand and governance structure.

Stock Buyback
HSBC Advances Share Buy-Back Program with Significant Repurchases
Positive
Oct 8, 2025

HSBC Holdings PLC announced the repurchase and cancellation of 500,000 ordinary shares on UK venues and 1,624,400 shares on the Hong Kong Stock Exchange as part of its ongoing share buy-back program. This move, part of a larger buy-back initiative launched in July 2025, aims to consolidate the company’s share capital, impacting its market positioning by potentially increasing shareholder value. The total number of shares repurchased since the program’s inception is 171,591,550, amounting to approximately US$2,257.9 million.

Executive/Board Changes
HSBC Appoints Angela McEntee as Group Company Secretary
Positive
Oct 8, 2025

HSBC Holdings plc has announced the appointment of Angela McEntee as the new Group Company Secretary, effective from January 1, 2026. Angela, who joined HSBC in 2020, brings extensive legal and governance experience from her previous roles, including her tenure at NatWest Group plc. This leadership change is expected to strengthen HSBC’s governance framework and support its strategic objectives.

Stock BuybackBusiness Operations and Strategy
HSBC Cancels 500,000 Shares in Ongoing Buy-Back Program
Positive
Oct 7, 2025

HSBC Holdings PLC announced the repurchase and cancellation of 500,000 of its ordinary shares as part of a buy-back program initiated on 31 July 2025. This transaction, executed on UK Venues, contributes to a total of 169,467,150 shares repurchased since the program’s inception, amounting to approximately US$2,227.8 million. The cancellation of these shares impacts the company’s issued ordinary share capital, now consisting of 17,250,851,238 shares with voting rights. This strategic move is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

Stock BuybackBusiness Operations and Strategy
HSBC Executes Strategic Share Buy-Back to Enhance Shareholder Value
Positive
Oct 3, 2025

HSBC Holdings PLC announced the repurchase and cancellation of its ordinary shares as part of a buy-back program initiated on 31 July 2025. The company repurchased 434,114 shares on UK venues and 1,490,000 shares on the Hong Kong Stock Exchange, with a total of 167,020,777 shares repurchased since the program’s commencement. This strategic move is aimed at optimizing the company’s capital structure and enhancing shareholder value, impacting its market positioning and stakeholder interests.

Stock BuybackBusiness Operations and Strategy
HSBC Enhances Shareholder Value with Strategic Buy-Back
Positive
Oct 2, 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 optimize the company’s capital structure and enhance shareholder value. The buy-back has resulted in the repurchase of over 165 million shares, with implications for the company’s share capital and voting rights.

Stock BuybackBusiness Operations and Strategy
HSBC Executes Share Buy-Back to Optimize Capital Structure
Neutral
Oct 1, 2025

HSBC Holdings PLC announced the repurchase and cancellation of 2,090,889 of its ordinary shares as part of its ongoing buy-back program, which began on 31 July 2025. This move is part of a larger strategy to manage the company’s capital structure, having repurchased a total of 162,742,181 shares for approximately US$2,132.3 million. The cancellation of shares will adjust the company’s issued ordinary share capital, affecting shareholder voting rights and potentially impacting market perceptions of the company’s financial health and strategic direction.

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: Dec 07, 2025