HSBC Holdings (GB:HSBA)
LSE:HSBA
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HSBC Holdings
(LSE:HSBA)
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Rating:80Outperform
Price Target:
1,496.00 p
â–²(24.92% Upside)
Action:ReiteratedDate: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
Stable deposit funding
A deep, growing deposit base materially strengthens core funding and liquidity, lowering reliance on volatile wholesale funding. Over the medium term this durable funding supports net interest income stability, balance sheet resilience and capacity to support lending and client activity.
Negative Factors
Elevated credit risk in Hong Kong CRE
Higher expected credit losses tied to Hong Kong commercial property reflect structural CRE stress (office vacancy, retail oversupply). Persistent asset‑quality pressure could raise loan loss provisioning and reduce earnings power and capital generation over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable deposit funding
A deep, growing deposit base materially strengthens core funding and liquidity, lowering reliance on volatile wholesale funding. Over the medium term this durable funding supports net interest income stability, balance sheet resilience and capacity to support lending and client activity.
Read all positive factors
HSBC Holdings (HSBA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£205.69B
Dividend Yield4.27%
Average Volume (3M)24.35M
Price to Earnings (P/E)12.1
Beta (1Y)1.52
Revenue Growth-11.86%
EPS Growth-24.31%
CountryUK
Employees211,940
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.26
Shares Outstanding17,175,240,000
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
£1,402.78Price Target Upside17.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.64
Revenue Forecast (FY)£72.36B
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 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 f...
HSBC Holdings Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call highlighted a strong operating performance in 2025—record profit before tax, improved ROTE (17.2%), deposit and wealth inflows, completion of the strategic Hang Seng privatization, continued cost discipline and clear medium-term targets (revenues to grow year-on-year, ROTE ≥17% and a 50% payout ratio). Notable near-term challenges were acknowledged: $6.7 billion of notable items in 2025 and a $0.6 billion restructuring charge for Hang Seng, elevated ECL guidance (~40 bps) reflecting Hong Kong CRE pressures, a Q4 one-off NII benefit, and a temporary suspension of buybacks due to capital impact from the privatization. Overall, the positive operational momentum, strategic execution (including completed privatization), and upgraded targets materially outweigh the headwinds called out, supporting a constructive outlook but with clear areas of vigilance (CRE, rate timing and ECL sensitivity).Positive Updates
Record Profit Before Tax and Revenue Growth
Full-year revenues grew 5% (constant currency) and profit before tax rose 7% to a record $36.6 billion for 2025.
Negative Updates
Notable Items and Restructuring Charges
2025 included $6.7 billion of notable items. Hang Seng privatization will incur a material restructuring charge of $0.6 billion (to achieve the ~$0.9 billion synergy/benefit by end-2028), classified as a notable item.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Profit Before Tax and Revenue Growth
Full-year revenues grew 5% (constant currency) and profit before tax rose 7% to a record $36.6 billion for 2025.
Read all positive updates
Company Guidance
HSBC's forward guidance targets year‑on‑year revenue growth each year through 2028, rising to 5% in 2028 (ex‑notable items), a return on tangible equity of 17% or better in each year 2026–2028 (ex‑notable items), and a 50% dividend payout ratio (ex‑material notable items); for 2026 specifically it expects banking NII of at least $45bn, an ECL charge of around 40 basis points, target‑basis cost growth constrained to 1% (after 3% in 2025) while delivering $1.5bn of reorganization simplification savings (to be realized by H1‑26) and circa $1.8bn of reallocation/cost synergies including $0.3bn Hang Seng cost synergies; Hang Seng privatization is expected to yield $0.5bn of reported synergies plus $0.4bn of potential upside (total ~$0.9bn) by end‑2028 at a restructuring charge of ~$0.6bn, and the CET1 target range remains 14.0–14.5%.HSBC Holdings Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| 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
1197.60
Price Trends
1235.97
Negative
1163.54
Positive
1046.12
Positive
Market Momentum
-16.02
Positive
46.72
Neutral
64.12
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 1197.6 is below the 20-day moving average (MA) of 1218.88, below the 50-day MA of 1235.97, and above the 200-day MA of 1046.12, indicating a neutral trend. The MACD of -16.02 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 64.12 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £205.69B | 12.10 | 8.88% | 4.27% | -11.86% | -24.31% | |
68 Neutral | £10.56B | 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 | £54.08B | 10.47 | 8.08% | 3.41% | -22.85% | -21.12% | |
65 Neutral | £34.50B | 11.02 | 9.85% | 1.70% | -4.35% | 21.86% | |
64 Neutral | £42.66B | 9.00 | 14.96% | 3.85% | 4.27% | 26.21% | |
61 Neutral | £52.96B | 9.37 | 9.41% | 1.50% | 14.18% | 46.12% |
* Financial Sector Average
GB:HSBA
HSBC Holdings
1,200.00
358.14
42.54%
GB:STAN
Standard Chartered
1,535.00
422.76
38.01%
GB:BARC
Barclays
382.20
94.47
32.83%
GB:INVP
Investec
570.50
116.89
25.77%
GB:LLOY
Lloyds Banking
90.44
20.55
29.40%
GB:NWG
NatWest Group
539.80
106.87
24.69%
HSBC Holdings Corporate Events
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...
Regulatory Filings and Compliance
HSBC Confirms Total Voting Rights at Over 17.1 Billion Shares
Neutral
Jan 30, 2026
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 disclosur...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
HSBC Completes Court-Approved Privatisation of Hang Seng Bank and Delisting in Hong Kong
Positive
Jan 26, 2026
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 condition...
Delistings and Listing ChangesLegal ProceedingsM&A Transactions
HSBC Wins Court Approval to Privatise Hang Seng Bank and Delist Shares
Neutral
Jan 23, 2026
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’...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants New Conditional Share Awards to Employees Under Global Purchase Plan
Neutral
Jan 13, 2026
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 a...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsShareholder Meetings
HSBC Wins Shareholder Backing to Privatise and Delist Hang Seng Bank
Positive
Jan 8, 2026
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 ...
Regulatory Filings and Compliance
HSBC Confirms Total Voting Rights Following Share Capital Update
Neutral
Dec 29, 2025
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...
Executive/Board Changes
HSBC Senior Independent Director Ann Godbehere to Retire at 2026 AGM
Neutral
Dec 23, 2025
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’...
DividendsRegulatory Filings and Compliance
HSBC Executives Receive Additional Shares Through Dividend Reinvestment Plan
Neutral
Dec 22, 2025
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 fo...
Executive/Board Changes
HSBC Announces Transition in Group Company Secretary Role
Neutral
Dec 18, 2025
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 Chie...
Business Operations and StrategyDelistings and Listing Changes
HSBC Moves to Privatize Hang Seng Bank for Strategic Realignment
Positive
Dec 17, 2025
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 exchan...
Dividends
HSBC Announces Third Interim Dividend for 2025
Positive
Dec 8, 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 val...
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.