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HSBC Holdings (HK:0005)
:0005
Earnings Data
Report Date
May 06, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
2.56Last Year’s EPS
4.2Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 19, 2025
|% Change Since: -13.18%
|Next Earnings Date:May 06, 2025
Earnings Call Sentiment|Positive
The earnings call reflects a strong financial performance for HSBC in 2024, with record profits and significant shareholder distributions. The bank is undergoing a major simplification drive to deliver cost savings and is confident in its growth strategy, particularly in Wealth and high-growth markets. However, the cost of this transformation is high, with substantial up-front expenses. Additionally, the external environment poses challenges, such as volatile interest rates and competitive pressures.Company Guidance
During the call, HSBC Holdings plc outlined its 2024 financial performance and strategic guidance for the coming years. The Group CEO, George Elhedery, reported a record profit before tax of $32.3 billion, or $34.1 billion excluding notable items, and a 14.6% return on tangible equity, which increases to 16% when notable items are excluded. HSBC declared $26.9 billion in total shareholder distributions, comprising $0.87 per share in dividends and $11 billion in share buybacks. The bank aims to achieve $1.5 billion in annualized savings by the end of 2025 through organizational simplification, targeting an 8% reduction in global staffing costs, with a projected $1.8 billion in upfront costs. HSBC plans to redeploy $1.5 billion from low-returning activities to growth areas, such as International Wealth and Premier Banking (IWPB) and Corporate and Institutional Banking (CIB), to capture high-net-worth customers and enhance transaction banking capabilities. The bank's strategic goals include achieving a mid-teens return on tangible equity from 2025 to 2027, underpinned by disciplined capital management, with a CET1 ratio target between 14% and 14.5%. The outlook anticipates a $42 billion Banking NII in 2025, leveraging a robust deposit franchise and strong loan portfolio, with continued emphasis on cost efficiency and investment in high-return opportunities.Record Profit Before Tax
HSBC delivered a record profit before tax of $32.3 billion for the year 2024, or $34.1 billion excluding notable items.
Strong Shareholder Returns
In 2024, HSBC announced $26.9 billion of distributions to shareholders, including $0.87 per share of dividends and $11 billion of share buybacks.
Significant Cost Savings
HSBC's organizational simplification is expected to deliver around $1.5 billion of annualized savings by the end of 2025, representing an 8% reduction of global staffing costs.
Wealth Business Growth
The Wealth segment showed a 27% increase in revenue in Q4 2024 year-on-year, marking the fourth consecutive quarter of double-digit growth.
Positive Outlook for Growth
HSBC is targeting a mid-teens return on tangible equity in 2025, 2026, and 2027, with significant investment planned in high-growth areas such as Wealth in Asia and the Middle East.
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HK:0005 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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HK:0005 Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 19, 2025 | HK$84.55 | HK$85.71 | +1.38% |
| Oct 29, 2024 | HK$66.22 | HK$68.66 | +3.69% |
| Jul 31, 2024 | HK$63.35 | HK$66.29 | +4.64% |
| Apr 30, 2024 | HK$60.01 | HK$61.34 | +2.21% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does HSBC Holdings (HK:0005) report earnings?
HSBC Holdings (HK:0005) is schdueled to report earning on May 06, 2025, TBA Not Confirmed.
What is HSBC Holdings (HK:0005) earnings time?
HSBC Holdings (HK:0005) earnings time is at May 06, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of HSBC Holdings stock?
The P/E ratio of HSBC Holdings is N/A.
What is HK:0005 EPS forecast?
HK:0005 EPS forecast for the fiscal quarter 2025 (Q1) is 2.56.
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