HSBC Holdings (GB:HSBA)
LSE:HSBA
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HSBC Holdings
(LSE:HSBA)
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Rating:72Outperform
Price Target:
1,515.00 p
▲(13.21% Upside)
Action:ReiteratedDate:03/03/26
The score is driven by solid fundamental profitability and a constructive earnings-call outlook (clear medium-term targets and strong 2025 performance), supported by positive price momentum. The main offsets are volatile cash flows, balance-sheet/data-quality limitations in the latest year, and identified near-term credit risk (higher ECL guidance and Hong Kong CRE), while valuation and dividend are supportive but not exceptionally cheap.
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
£230.16B
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 Outstanding17,183,547,000
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
£1,426.10Price Target Upside6.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.64
Revenue Forecast (FY)£72.49B
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 primarily makes money by earning income from (1) interest-based activities and (2) fee- and trading-based activities, alongside insurance- and investment-related income in some businesses.
1) Net interest income (interest income minus intere...
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
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 | 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
1338.20
Price Trends
1254.19
Positive
1194.74
Positive
1075.67
Positive
Market Momentum
31.96
Negative
64.71
Neutral
87.91
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 1338.2 is above the 20-day moving average (MA) of 1256.11, above the 50-day MA of 1254.19, and above the 200-day MA of 1075.67, indicating a bullish trend. The MACD of 31.96 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 87.91 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | £230.16B | 12.10 | 8.88% | 4.27% | -11.86% | -24.31% | |
68 Neutral | £11.52B | 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 | £60.40B | 10.47 | 9.93% | 3.41% | -22.85% | -21.12% | |
65 Neutral | £39.48B | 11.02 | 9.85% | 1.70% | -4.35% | 21.86% | |
64 Neutral | £49.63B | 9.00 | 14.33% | 3.85% | 4.27% | 26.21% | |
61 Neutral | £60.36B | 9.37 | 9.41% | 1.50% | 14.18% | 46.12% |
* Financial Sector Average
GB:HSBA
HSBC Holdings
1,338.20
588.00
78.38%
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HSBC Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
HSBC Clarifies Redemption Timing for US$2bn 2027 Senior Notes
Neutral
Apr 17, 2026
HSBC Holdings has issued an amended and restated notice of redemption for its US$2bn 1.589% fixed-to-floating rate senior unsecured notes due 2027, clarifying that while the contractual redemption date remains 24 May 2026, payment of principal and...
Business Operations and Strategy
HSBC to Redeem US$2 Billion Senior Notes Due 2027 at Par in May 2026
Neutral
Apr 16, 2026
HSBC Holdings has elected to redeem in full its US$2 billion 1.589% Fixed Rate/Floating Rate senior unsecured notes due 2027, exercising a par redemption option under its indenture. The notes will be redeemed at US$1,000 per US$1,000 principal amo...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants New Employee Share Awards Under Global Purchase Plan
Positive
Apr 14, 2026
HSBC Holdings has granted conditional share awards to employees under its International Employee Share Purchase Plan, covering a total of 307,754.79576 ordinary shares listed in London and Hong Kong. The awards, granted at no purchase price and wi...
Executive/Board Changes
HSBC Grants Significant Share Awards to UK Chief Executive David Lindberg
Neutral
Apr 2, 2026
HSBC Holdings has reported a share-based remuneration arrangement for David Lindberg, Chief Executive of HSBC UK Bank plc, involving both immediately vested and deferred awards of ordinary shares under the HSBC Share Plan 2011. The awards, granted...
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants Over 2.1 Million Conditional Share Awards Under 2011 Plan
Positive
Apr 2, 2026
HSBC Holdings has granted conditional share awards over 2,119,724 ordinary shares to employees and former employees under the HSBC Share Plan 2011, with no purchase price and vesting mainly over three years in line with the group’s deferral ...
Business Operations and StrategyPrivate Placements and Financing
HSBC issues US$130m 10-year senior unsecured notes
Positive
Mar 27, 2026
HSBC Holdings plc has issued US$130m of 5.48% fixed-rate senior unsecured notes due 2036 under its existing Debt Issuance Programme. The bank plans to list and trade the notes on the Official List of the UK Financial Conduct Authority and the Main...
Regulatory Filings and Compliance
HSBC Discloses Senior Executive Dealings in Capital Securities and Shares
Neutral
Mar 26, 2026
HSBC disclosed senior executive dealings in its own securities under UK market abuse regulations, highlighting both debt and equity transactions. The filing underscores ongoing transparency requirements around management trading activity in the ba...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings
HSBC Wins Hong Kong Waiver to Issue Extra Contingent Convertible Securities
Positive
Mar 25, 2026
HSBC Holdings has obtained a waiver from the Hong Kong Stock Exchange allowing it to seek a special mandate to issue contingent convertible securities beyond the usual 20% limit on non-pre-emptive share issues. These contingent convertible securit...
Executive/Board ChangesDividendsRegulatory Filings and Compliance
HSBC Awards Dividend-Linked Shares to Executives as Senior Leader Sells Stake
Neutral
Mar 24, 2026
HSBC Holdings has awarded additional ordinary shares to several senior executives as dividend equivalents under its HSBC Share Plan 2011, linked to the fourth interim dividend for 2025. The awards, priced at an average of £11.9768 per share, ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
HSBC Raises US$2.5bn via Perpetual Contingent Convertible Securities
Positive
Mar 24, 2026
HSBC Holdings has issued US$2.5 billion of perpetual subordinated contingent convertible securities in two US$1.25 billion tranches, paying 6.75% and 7.00% coupons and callable during optional redemption periods in 2031 and 2036, respectively. The...
Executive/Board ChangesRegulatory Filings and Compliance
HSBC Discloses Vesting of Deferred Share Awards for Senior Executives
Neutral
Mar 13, 2026
HSBC Holdings has reported the vesting of deferred share awards granted under its annual incentive plans for performance years 2023 and 2024, with tranches vesting on 11 and 12 March 2026 for several senior executives. The transactions, conducted ...
Executive/Board ChangesRegulatory Filings and Compliance
HSBC Details Executive Share Award Vestings and Long‑Term Incentive Outcomes
Neutral
Mar 12, 2026
HSBC has reported the vesting of multiple deferred share, annual incentive and long‑term incentive awards for senior executives and other persons discharging managerial responsibilities, covering performance years 2018 to 2022 and long‑...
Business Operations and StrategyFinancial Disclosures
HSBC revamps business-line reporting ahead of 1Q 2026 results
Neutral
Mar 12, 2026
HSBC Holdings has announced changes to how it presents financial information across its four business lines and Corporate Centre, reflecting the migration of certain clients, mainly from its Hong Kong and UK operations into Corporate and Instituti...
Executive/Board Changes
HSBC Grants Multi‑Year Share Awards to Top Executives for 2025 Performance
Neutral
Mar 11, 2026
HSBC Holdings has granted long‑term incentive share awards and annual incentive share awards to its executive directors and senior managers for the 2025 performance year, with vesting schedules stretching from 2027 to 2030. The mix of forwar...
Executive/Board ChangesRegulatory Filings and Compliance
HSBC Grants 35 Million-Share Conditional Awards to Executives and Staff
Neutral
Mar 11, 2026
HSBC Holdings has granted conditional share awards over 35,019,686 ordinary shares under its HSBC Share Plan 2011 to directors, employees and former employees, with no purchase price payable. The grants include significant awards to executive dire...
Business Operations and StrategyPrivate Placements and Financing
HSBC Raises US$8 Billion Through Multi-Tranche Senior Unsecured Notes
Positive
Mar 10, 2026
HSBC Holdings has issued four tranches of senior unsecured notes totalling US$8 billion, combining fixed-to-floating and floating-rate structures with maturities ranging from 2030 to 2037. The bank plans to list the instruments on the New York Sto...
Regulatory Filings and Compliance
HSBC Asia Co-Chief Executive Surendra Rosha Sells HK$43 Million in Shares
Neutral
Mar 4, 2026
HSBC disclosed that Surendra Rosha, Co-Chief Executive for Asia and the Middle East, sold 308,400 HSBC ordinary shares on 3 March 2026 on the Hong Kong Stock Exchange. The transaction, executed from a jointly held nominee account with his spouse, ...
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’...
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.