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HSBC Holdings
(LSE:HSBA)
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Rating:72Outperform
Price Target:
1,773.00 p
▲(14.18% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid underlying financial performance (strong revenue and profitability, tempered by cash-flow volatility and balance-sheet leverage/data gaps) and strong technical uptrend signals. Earnings call tone and guidance were constructive (NII upgrade, higher savings target, buybacks/dividend policy), while valuation appears reasonable but not clearly cheap at a 17.4x P/E with a 3.5% yield.
Positive Factors
Net interest income upgrade
An upgraded banking NII target to at least $46bn reflects structurally stronger interest income potential from higher reinvestment yields and deposit growth. Persistently higher NII supports sustainable earnings, funds investments, and underpins dividend/buyback capacity over the medium term.
Negative Factors
Elevated credit impairment / HK CRE
Material ECL provisioning, including CRE‑related Stage 3 charges in Hong Kong, signals real credit risk in commercial property and localized portfolios. Persistent impairment charges would erode capital, reduce distributable earnings, and increase provisioning needs over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Net interest income upgrade
An upgraded banking NII target to at least $46bn reflects structurally stronger interest income potential from higher reinvestment yields and deposit growth. Persistently higher NII supports sustainable earnings, funds investments, and underpins dividend/buyback capacity over the medium term.
Read all positive factors
HSBC Holdings (HSBA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£262.29B
Dividend Yield3.65%
Average Volume (3M)24.35M
Price to Earnings (P/E)14.6
Beta (1Y)1.52
Revenue Growth-7.93%
EPS Growth35.55%
CountryUK
Employees209,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.22
Shares Outstanding17,183,564,000
10 Day Avg. Volume24,642,152
30 Day Avg. Volume24,349,859
Financial Highlights & Ratios
PEG Ratio-15.92
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
£1,586.08Price Target Upside2.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.69
Revenue Forecast (FY)£74.53B
HSBC Holdings Business Overview & Revenue Model
Company Description
HSBC Holdings plc is a multinational financial institution delivering banking and diverse financial solutions across the globe. Its operations are structured into three primary divisions: Wealth and Personal Banking, Commercial Banking, and Global...
How the Company Makes Money
HSBC makes money primarily by providing banking and financial services and earning income from interest, fees/commissions, and trading/market activities.
1) Net interest income (lending and deposits)
- A major revenue driver is the spread between...
HSBC Holdings Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented broad, multi‑faceted momentum: strong revenue and profit growth, improving NII, robust deposit and loan expansion, significant net new money and Wealth momentum, solid transaction banking performance, reinstated buybacks and disciplined capital management. Management also highlighted meaningful progress on simplification savings and Hang Seng synergies. Headwinds include a notable ECL charge (driven partly by Hong Kong CRE), localised mid‑market credit pressures, some short‑term volatility in wholesale deposits, ongoing divestments with transitional costs, and sensitivity to HIBOR/FX. On balance the positives—strong growth, profitability, capital strength and execution on strategy—outweigh the challenges described.Positive Updates
Revenue and Profit Growth
Q2 revenue grew 7% year-on-year to USD 19.0 billion; profit before tax rose 13% YoY to USD 10.3 billion; quarter annualized return on tangible equity (ROTCE) was 19.5% (H1 ROTCE 19.1%).
Negative Updates
Elevated ECL Charge and CRE Pressure
Q2 ECL charge USD 1.1 billion (annualized 41 bps of loans); full‑year guidance reiterated around 45 bps. Quarter included additional Stage 3 charges of USD 0.2 billion related to Hong Kong commercial real estate; pockets of pressure remain in some office and retail areas (e.g., East Kowloon vacancy ~20% and rents down).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Profit Growth
Q2 revenue grew 7% year-on-year to USD 19.0 billion; profit before tax rose 13% YoY to USD 10.3 billion; quarter annualized return on tangible equity (ROTCE) was 19.5% (H1 ROTCE 19.1%).
Read all positive updates
Company Guidance
HSBC reiterated its medium‑term targets and updated near‑term guidance: banking NII has been upgraded to at least USD 46 billion for 2026; organizational simplification savings have been raised from USD 1.5bn to USD 2bn to be actioned this year (USD 1.7bn of action saves achieved so far, within a committed USD 1.8bn restructuring cost envelope); full‑year credit guidance remains around 45 basis points ECL; 2026 cost growth is targeted at ~1% y/y (with modest upside possible from performance‑related pay); capital generation of c.100bps (CET1 14.1% at period end after c.30bps consumed by balance‑sheet growth and a 50bps dividend accrual) supports reinstating buybacks of up to USD 1bn and a dividend policy targeting a 50% payout ratio (USD 0.10 interim, USD 0.20 H1); and the group reiterated its medium‑term goals of revenue growth rising to 5% y/y by 2028 and return on tangible equity of 17%+ each year (all metrics stated excluding notable items).HSBC Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.68B | 150.61B | 143.29B | 129.51B | 76.17B | 73.95B |
| Gross Profit | 61.95B | 82.28B | 67.40B | 64.44B | 53.72B | 64.25B |
| EBITDA | 31.98B | 29.57B | 36.39B | 33.81B | 20.91B | 23.19B |
| Net Income | 22.21B | 22.75B | 23.98B | 23.53B | 15.56B | 13.92B |
Balance Sheet | ||||||
| Total Assets | 3.31T | 3.23T | 3.02T | 3.04T | 2.95T | 2.96T |
| Cash, Cash Equivalents and Short-Term Investments | 580.36B | 609.23B | 821.55B | 299.57B | 539.10B | 422.44B |
| Total Debt | 101.74B | 499.29B | 242.35B | 235.16B | 204.24B | 223.64B |
| Total Liabilities | 3.11T | 3.05T | 2.82T | 2.85T | 2.76T | 2.75T |
| Stockholders Equity | 197.06B | 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
1552.80
Price Trends
1463.65
Positive
1386.33
Positive
1266.89
Positive
Market Momentum
20.48
Positive
52.45
Neutral
38.31
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 1552.8 is above the 20-day moving average (MA) of 1534.04, above the 50-day MA of 1463.65, and above the 200-day MA of 1266.89, indicating a neutral trend. The MACD of 20.48 indicates Positive momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 38.31 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | £262.29B | 14.63 | 12.98% | 3.58% | -7.93% | 35.55% | |
72 Outperform | £69.75B | 10.62 | 10.11% | 1.64% | 8.23% | 18.19% | |
72 Outperform | £56.59B | 7.45 | 16.16% | 4.81% | 2.78% | 24.91% | |
68 Neutral | £48.85B | 13.94 | 10.35% | 2.16% | -12.87% | 12.23% | |
68 Neutral | £12.58B | 8.70 | 13.48% | 5.91% | -3.55% | 5.64% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | £66.54B | 14.12 | 11.05% | 3.22% | -16.61% | 21.26% |
* Financial Sector Average
GB:HSBA
HSBC Holdings
1,524.20
613.52
67.37%
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516.00
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GB:INVP
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GB:LLOY
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113.80
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707.40
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37.27%
HSBC Holdings Corporate Events
Regulatory Filings and Compliance
HSBC Confirms Total Voting Rights Following Share Capital Update
Neutral
Jul 31, 2026
HSBC Holdings plc has confirmed that, as of 30 July 2026, its issued share capital consists of 17,183,563,842 ordinary shares of US$0.50 each, with no shares held in treasury. As a result, the total number of voting rights in the company is 17,183...
Business Operations and StrategyDelistings and Listing Changes
HSBC to Redeem £1bn Contingent Convertible Securities and Delist Issue
Positive
Jul 30, 2026
HSBC Holdings plc has elected to redeem in full its £1bn 5.875% perpetual subordinated contingent convertible securities on 28 September 2026, paying £1,000 per £1,000 principal plus accrued interest to holders of record. Once redee...
Business Operations and StrategyExecutive/Board Changes
HSBC Reshapes Key Board Committees to Strengthen Governance
Positive
Jul 30, 2026
HSBC Holdings plc, one of the world’s largest banking and financial services groups, is headquartered in London and serves customers in 56 countries and territories. With assets of US$3,306 billion at 31 March 2026, the bank’s global r...
Business Operations and StrategyM&A Transactions
HSBC to Sell Singapore Life Insurance Unit to Allianz in US$2.1 Billion Deal
Positive
Jul 24, 2026
HSBC has agreed to sell its Singapore life and health insurance arm, HSBC Life (Singapore) Pte. Ltd., to Allianz for S$2.7 billion, with completion expected in the first half of 2027 subject to regulatory approval. The business, which underwrites ...
DividendsFinancial Disclosures
HSBC to Review Interim Results and Consider Second 2026 Dividend
Positive
Jul 23, 2026
HSBC Holdings plc has scheduled a board committee meeting for 4 August 2026 to review its interim results for the six months ended 30 June 2026 and to consider a second interim dividend for the year. Subject to approval, the dividend will be paid ...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants New Employee Share Awards Under Global Purchase Plan
Positive
Jul 10, 2026
HSBC Holdings has granted conditional share awards to employees under its International Employee Share Purchase Plan, covering a total of 273,474.84948 ordinary shares listed in London and Hong Kong. The awards, issued at a purchase price of zero ...
DividendsRegulatory Filings and Compliance
HSBC executives receive additional shares via dividend reinvestment plan
Neutral
Jun 30, 2026
HSBC has disclosed routine share transactions by senior executives under its share plan, following the automatic reinvestment of the bank’s first interim dividend for 2026. Co-Chief Executive for Asia and the Middle East David Liao acquired ...
Regulatory Filings and Compliance
HSBC Clarifies Total Voting Rights and Share Capital Structure
Positive
Jun 30, 2026
HSBC Holdings has confirmed that as of 29 June 2026 its issued share capital consists of 17,183,563,842 ordinary shares of US$0.50 each, with no shares held in treasury. This means the total number of voting rights in the bank also stands at 17,18...
Private Placements and FinancingRegulatory Filings and Compliance
HSBC Reports No Stabilisation on Zurich Finance USD 500 Million Bond
Neutral
Jun 17, 2026
HSBC has announced that no price stabilisation activities were conducted in relation to a USD 500 million, seven‑year senior unsecured bond issued by Zurich Finance (Ireland) DAC and guaranteed by Zurich Insurance Company. The notes were off...
Dividends
HSBC Sets First Interim Dividend for 2026 and Details Currency Options
Positive
Jun 15, 2026
HSBC Holdings has confirmed the first interim dividend for the 2026 financial year at US$0.10 per ordinary share, payable on 26 June 2026 to shareholders on the UK principal register and the Hong Kong and Bermuda branch registers as of 15 May. The...
Business Operations and Strategy
HSBC to Redeem £1bn Fixed-to-Floating Senior Notes Ahead of 2027 Maturity
Neutral
Jun 11, 2026
HSBC Holdings has announced it will fully redeem its £1bn 1.750% fixed-to-floating rate senior unsecured notes due 2027, exercising a par call option on the securities. The move retires the debt at 100% of principal on 24 July 2026, aligning ...
Regulatory Filings and Compliance
HSBC Updates Share Capital and Voting Rights for Disclosure Purposes
Neutral
May 29, 2026
HSBC Holdings has confirmed that, as of 28 May 2026, its issued share capital stands at 17,183,563,842 ordinary shares of US$0.50 each, with no shares held in treasury. This means the total number of voting rights is identical to the number of sha...
Private Placements and FinancingRegulatory Filings and Compliance
HSBC Issues Limited New Shares Under Employee Plan With Minimal Dilution
Neutral
May 29, 2026
HSBC Holdings has issued 3,312 new ordinary shares under its HSBC Share Plan 2011 as part of its existing block listing arrangements, with the new shares ranking pari passu with the bank’s existing ordinary share capital. Following this smal...
Executive/Board ChangesRegulatory Filings and Compliance
HSBC boosts executive share awards via dividend equivalents
Neutral
May 27, 2026
HSBC Holdings has granted additional ordinary shares to several senior executives as dividend equivalents under its 2011 share plan, reflecting the first interim dividend for 2026. The awards, priced at an average of £13.3968 per share based ...
Business Operations and StrategyPrivate Placements and Financing
HSBC Raises A$1.4bn in Multi-Tranche Senior Unsecured Note Offering
Positive
May 26, 2026
HSBC Holdings has tapped the Australian dollar debt market with a multi-tranche issuance of senior unsecured notes under its A$50 billion Debt Issuance Programme, raising A$1.4 billion across fixed-to-floating and floating rate instruments maturin...
Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
HSBC Raises US$1.5bn with Perpetual CoCo Securities Listed on Euronext Dublin
Positive
May 18, 2026
HSBC Holdings has completed the issuance of US$1.5bn of 6.750% perpetual subordinated contingent convertible securities, callable during any optional redemption period, after all conditions under its securities terms agreement were satisfied. The ...
Business Operations and StrategyDelistings and Listing Changes
HSBC to Redeem CNH2.75bn 2027 Notes and Cancel Listings
Neutral
May 15, 2026
HSBC Holdings plc has announced it will exercise its call option to redeem in full its CNH2.75bn 3.40% Notes due 2027 on 29 June 2026, repaying noteholders at CNH1,000,000 per calculation amount plus accrued interest. The move simplifies HSBC̵...
Business Operations and StrategyExecutive/Board ChangesStock BuybackShareholder Meetings
HSBC Investors Back Board Proposals and Reject Activist Resolutions at 2026 AGM
Positive
May 8, 2026
HSBC shareholders approved the vast majority of management-backed resolutions at the 2026 annual general meeting, including the receipt of the 2025 accounts, the directors’ remuneration report, re-election and election of directors, reappoin...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresShareholder Meetings
HSBC touts strong payouts and global trade positioning at AGM
Positive
May 8, 2026
HSBC used its annual general meeting in London to underline its strategy as a globally connected bank, highlighting its 161-year heritage, strong presence in Hong Kong and the Middle East, and its role in financing customers’ transition towa...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC grants new conditional share awards under 2011 plan
Neutral
May 7, 2026
HSBC Holdings has granted conditional share awards covering 182,795 ordinary shares to employees and former employees under its HSBC Share Plan 2011, with no purchase price payable by participants. The awards form part of the bank’s variable...
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.