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HSBC Holdings Plc (HSBC)
NYSE:HSBC
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HSBC Holdings
(NYSE:HSBC)
Rating:80Outperform
Price Target:
$71.00
â–²(9.28% Upside)
HSBC Holdings (HSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$221.71B
Dividend Yield5.05%
Average Volume (3M)1.44M
Price to Earnings (P/E)12.7
Beta (1Y)0.61
Revenue Growth-2.96%
EPS Growth-13.66%
CountryUS
Employees211,940
SectorFinancial
Sector Strength71
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.95
Shares Outstanding3,477,492,000
10 Day Avg. Volume1,594,725
30 Day Avg. Volume1,443,648
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)1.03
Price to Sales (P/S)3.12
P/FCF Ratio3.11
Enterprise Value/Market Cap2.08
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit4.20
Enterprise Value/Ebitda15.53
Forecast
1Y Price Target
$67.00Price Target Upside3.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
HSBC Holdings Business Overview & Revenue Model
Company DescriptionHSBC Holdings plc is a British multinational banking and financial services organization, headquartered in London. It operates in various sectors including retail banking, wealth management, commercial banking, and global banking and markets. HSBC provides a wide range of core products and services, such as personal banking products, credit cards, mortgages, investment services, and corporate financing solutions, catering to both individual and institutional clients around the world.
How the Company Makes MoneyHSBC generates revenue through multiple streams, primarily from net interest income and non-interest income. Net interest income is derived from the interest earned on loans and advances to customers, minus the interest paid on deposits and other borrowings. Non-interest income includes fees and commissions from various services such as investment banking, wealth management, and transaction services. Additionally, HSBC benefits from its significant global presence, allowing it to capitalize on cross-border transactions and foreign exchange services. Strategic partnerships with fintech companies and other financial institutions also enhance its service offerings and revenue potential. Furthermore, HSBC's focus on emerging markets provides opportunities for growth, particularly in Asia, where demand for banking services is rising.
HSBC Holdings Key Performance Indicators (KPIs)
Any
Operating Profit by Segment
Reveals the profitability of each business segment, highlighting which areas are driving earnings and where there may be challenges or opportunities for growth.
Reveals the profitability of each business segment, highlighting which areas are driving earnings and where there may be challenges or opportunities for growth.
Data provided by:
Main Street Data
Main Street DataHSBC Holdings Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -0.14%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call demonstrated strong revenue growth and shareholder returns, alongside significant customer growth and technological investments. However, challenges in the Hong Kong CRE market, HIBOR-related headwinds, and impairment in BoCom present notable concerns. The sentiment reflects a balanced outlook with positive achievements and existing challenges.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue in the first half grew 6% to $35.4 billion, and profit before tax was 5% higher at $18.9 billion. Annualized return on tangible equity was 18.2%, up 1.2% year-on-year.
Customer Growth in Hong Kong
In Hong Kong, 100,000 new-to-bank customers were attracted every month on average in 2025, indicating strong customer growth and solid deposit inflows.
Growth in Wealth and Wholesale Banking
Fees and other income in Wealth and Wholesale transaction banking grew. Wealth businesses attracted net new invested assets of $22 billion in the quarter.
Significant Shareholder Returns
A $0.10 dividend per share was announced alongside a share buyback of up to $3 billion, bringing total shareholder distributions for the half year to $9.5 billion.
Expansion in Wealth Centers
Opened new wealth centers in Hong Kong and the U.K., with further expansions planned, enhancing wealth capabilities and customer engagement.
Technological Advancements
Modernization through AI and Automation was highlighted, improving technology productivity and customer service.
Negative Updates
Hong Kong Commercial Real Estate (CRE) Challenges
Continued challenges in the Hong Kong CRE market, particularly in the office space due to oversupply, led to an ECL charge increase and impacted credit quality.
BoCom Impairment
A $1 billion impairment was booked in associates related to BoCom, alongside a dilution of interest to 16% from its share issuance.
HIBOR-Related Headwinds
HIBOR headwinds resulted in a significant impact on banking NII, with a $100 million impact per month at 1% HIBOR.
Increased ECL Guidance
Revised full year ECL guidance to around 40 basis points from the previous 30 to 40 basis points, partly due to Hong Kong CRE pressures.
Company Guidance
During the recent HSBC Holdings plc analyst and investor webinar, the guidance provided by Group CEO Georges Elhedery highlighted several key financial metrics and strategic insights. For the first half of 2025, revenue, excluding notable items, grew by 6% to $35.4 billion, with profit before tax rising 5% to $18.9 billion. The annualized return on tangible equity increased by 1.2% year-on-year to 18.2%. The bank's strategy included sustaining earnings momentum across its four businesses, notably attracting 100,000 new-to-bank customers monthly in Hong Kong, and achieving a $6 billion increase in the U.K. loan book. HSBC's financial strength was underscored by an $83 billion growth in deposits over the past year. The bank announced a $0.10 dividend per share and a share buyback of up to $3 billion, resulting in total shareholder distributions of $9.5 billion for the half year. HSBC reaffirmed its full year banking net interest income guidance of around $42 billion, despite facing HIBOR headwinds, and maintained its mid-teens return on tangible equity guidance for 2025, 2026, and 2027. The bank is also on track to achieve $1.5 billion in simplification savings by 2026, with $0.4 billion expected to impact the 2025 profit and loss statement.HSBC Holdings Financial Statement Overview
Summary
HSBC has exhibited strong financial health with consistent revenue growth and effective cash flow management. The zero debt position in 2024 significantly strengthens its balance sheet, although there is room for improvement in operational efficiency as indicated by the slight decrease in return on equity. The bank's ability to generate cash and manage costs remains robust, positioning it well for continued stability and growth.Income Statement
HSBC has demonstrated a strong income statement performance with consistent revenue growth, particularly from 2023 to 2024, showing a growth rate of 7.28%. The net profit margin improved slightly to 35.45% in 2024 from 37.34% in 2023, indicating efficient cost management and profitability. However, the absence of EBIT and EBITDA margins in 2024 suggests a potential need for detailed operational cost analysis.85
Very Positive
Balance Sheet
The balance sheet reflects solid financial stability with zero total debt in 2024, enhancing the debt-to-equity ratio. HSBC's equity ratio remained strong, maintaining investor confidence. However, the return on equity slightly decreased to 12.96% in 2024 from 12.70% in 2023, indicating a slight dip in efficiency in generating returns on shareholder equity.78
Positive
Cash Flow
HSBC's cash flow analysis shows robust free cash flow growth of 73.34% from 2023 to 2024, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 2.72 in 2024 signifies effective cash management. However, the free cash flow to net income ratio slightly declined from 1.50 in 2023 to 2.56 in 2024, suggesting potential reinvestment or operational changes.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 163.70B | 61.25B | 56.35B | 76.17B | 73.95B | 77.46B |
| Gross Profit | 110.15B | 67.40B | 64.44B | 53.72B | 64.25B | 63.28B |
| EBITDA | 29.76B | 36.39B | 33.81B | 20.91B | 23.19B | 14.02B |
| Net Income | 20.72B | 23.98B | 23.53B | 15.56B | 13.92B | 5.23B |
Balance Sheet | ||||||
| Total Assets | 3.05T | 3.02T | 3.04T | 2.97T | 2.96T | 2.98T |
| Cash, Cash Equivalents and Short-Term Investments | 254.66B | 284.51B | 307.03B | 350.05B | 422.44B | 328.73B |
| Total Debt | 474.52B | 242.35B | 235.16B | 100.44B | 395.44B | 117.44B |
| Total Liabilities | 2.86T | 2.82T | 2.85T | 2.77T | 2.75T | 2.78T |
| Stockholders Equity | 190.81B | 184.97B | 185.33B | 177.83B | 198.25B | 196.44B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 61.42B | 35.42B | 22.02B | 100.75B | 178.71B |
| Operating Cash Flow | 0.00 | 65.31B | 39.11B | 26.43B | 104.31B | 182.22B |
| Investing Cash Flow | 0.00 | -76.56B | -62.91B | -34.48B | 27.54B | -22.43B |
| Financing Cash Flow | 0.00 | -26.46B | -17.56B | -6.29B | -10.79B | -4.64B |
HSBC Holdings Technical Analysis
Positive
64.97
Price Trends
61.56
Positive
58.58
Positive
53.72
Positive
Market Momentum
0.59
Negative
64.06
Neutral
86.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSBC, the sentiment is Positive. The current price of 64.97 is above the 20-day moving average (MA) of 63.37, above the 50-day MA of 61.56, and above the 200-day MA of 53.72, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 64.06 is Neutral, neither overbought nor oversold. The STOCH value of 86.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSBC.
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 | $221.71B | 12.73 | 10.69% | 5.05% | -2.96% | -13.66% | |
79 Outperform | $341.90B | 13.52 | 9.46% | 2.19% | 4.95% | 20.49% | |
78 Outperform | $138.10B | 9.95 | 12.85% | 2.75% | -14.74% | 13.79% | |
78 Outperform | $796.22B | 14.86 | 16.13% | 1.81% | 4.00% | 8.73% | |
77 Outperform | $248.55B | 13.31 | 11.51% | 2.08% | 0.37% | 19.89% | |
73 Outperform | $169.93B | 13.65 | 6.64% | 2.38% | 0.52% | 89.25% | |
68 Neutral | $17.46B | 11.65 | 10.44% | 3.86% | 10.36% | 1.15% |
* Financial Sector Average
Performance Comparison
HSBC
HSBC Holdings
64.97
25.48
64.52%
BAC
Bank of America
47.50
9.96
26.53%
C
Citigroup
95.74
39.32
69.69%
JPM
JPMorgan Chase
292.85
89.48
44.00%
WFC
Wells Fargo
79.48
27.76
53.67%
SAN
Banco Santander SA
9.39
4.97
112.44%
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.