Want to see HSBC full AI Analyst Report?
Top Page
HSBC Holdings
(NYSE:HSBC)
Select Model
Select Model
Rating:73Outperform
Price Target:
$108.00
â–²(32.82% Upside)
Action:Reiterated
Date:05/05/26
The score is driven by solid profitability and revenue momentum plus a constructive earnings call (upgraded NII guidance and strong RoTE), supported by favorable trend/momentum signals and decent valuation with a ~4.16% yield. Key offsets are the 2025 jump in leverage and the volatility/decline in cash flow, alongside higher near-term credit charges and capital impacts highlighted on the call.
Positive Factors
Wealth franchise momentum
Sustained growth in wealth balances and strong net new money, particularly from Asia, strengthens recurring fee income and client relationships. That increases fee diversification, improves deposit stickiness and supports higher-margin, less cyclical earnings over the medium term.
Negative Factors
Sharp leverage increase
A material rise in leverage reduces financial flexibility and increases sensitivity to funding stress or rate shifts. Higher debt levels constrain capital actions, elevate regulatory scrutiny and limit ability to absorb earnings shocks, making the bank more exposed over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Wealth franchise momentum
Sustained growth in wealth balances and strong net new money, particularly from Asia, strengthens recurring fee income and client relationships. That increases fee diversification, improves deposit stickiness and supports higher-margin, less cyclical earnings over the medium term.
Read all positive factors
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:
The Fly
The FlyHSBC Holdings (HSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$322.65B
Dividend Yield4.14%
Average Volume (3M)1.73M
Price to Earnings (P/E)15.4
Beta (1Y)0.84
Revenue Growth-6.12%
EPS Growth12.49%
CountryUS
Employees211,940
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)6.00
Shares Outstanding3,436,712,600
10 Day Avg. Volume1,971,692
30 Day Avg. Volume1,727,798
Financial Highlights & Ratios
PEG Ratio-4.06
Price to Book (P/B)1.38
Price to Sales (P/S)1.85
P/FCF Ratio10.92
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue4.19
Enterprise Value/Gross Profit8.18
Enterprise Value/Ebitda15.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.4
Revenue Forecast (FY)$74.01B
HSBC Holdings Business Overview & Revenue Model
Company Description
HSBC Holdings plc functions as a prominent global entity, delivering a full spectrum of banking and financial services around the world. Its operations are structured into three key divisions: Wealth and Personal Banking, Commercial Banking, and G...
How the Company Makes Money
HSBC primarily earns revenue from a mix of net interest income and fee- and market-based income across its main business lines.
1) Net interest income (lending and deposits): A large portion of HSBC’s earnings comes from the spread between intere...
HSBC Holdings Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlighted strong underlying profitability and clear progress on strategic priorities: revenue growth (+4% YoY), an elevated RoTE (18.7%), robust wealth flows (wealth balances +12% YoY, net new money $39bn) and disciplined cost and capital management. Management upgraded banking NII guidance (to around $46bn) and reiterated targets, while executing simplification actions and completing notable disposals. Offsetting these positives were a higher Q1 ECL charge (annualized 52 bps) that included a $0.4bn fraud‑related hit and a $0.3bn Middle East reserve, a quarter‑on‑quarter dip in NII, and a 90 bps CET1 hit from strategic transactions. Management characterized the credit events as idiosyncratic, maintained conservative guidance (ECL ~45 bps) and emphasized resilience and capital generation. Overall, the highlights — significant profitability, wealth momentum, deposit/loan growth and strategic execution — outweigh the quarter‑specific headwinds, though risks from geopolitics and certain idiosyncratic credit events are meaningful and monitored closely.Positive Updates
Strong Profitability and RoTE
Profit before tax excluding notable items of $10.1 billion and annualized return on tangible equity (ex-notable items) of 18.7%, up 0.3 percentage points year‑on‑year — highest print in nearly 20 years.
Negative Updates
Elevated Q1 Credit Charge and Fraud Exposure
First quarter ECL charge was $1.3 billion (annualized 52 basis points of loans). This includes a $0.3 billion charge related to the Middle East conflict and a $0.4 billion charge for fraud‑related secondary securitization exposure tied to a financial sponsor. Management views the Stage 3 charge as idiosyncratic but it materially lifted the quarter's impairment level.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and RoTE
Profit before tax excluding notable items of $10.1 billion and annualized return on tangible equity (ex-notable items) of 18.7%, up 0.3 percentage points year‑on‑year — highest print in nearly 20 years.
Read all positive updates
Company Guidance
HSBC updated its 2026 guidance by raising full‑year banking NII to around $46 billion and setting expected ECL at around 45 basis points (Q1 ECL was $1.3bn, annualized 52bps, including $0.3bn Middle East and $0.4bn fraud‑related items); it reiterated medium‑term targets of revenue growth to 5% y/y by 2028 (excluding notables), RoTE of 17%+ (excluding notables) and a dividend payout target of 50% of EPS (excluding material notables), while keeping CET1 within its operating range of 14–14.5% (current CET1 14%). Management also confirmed a 2026 cost growth target of around 1% versus 2025 on a target basis (2025 cost baseline $34bn FX‑adjusted), noted $0.2bn of simplification savings this quarter toward a $1.5bn target, and flagged ongoing quarterly review of buybacks; supporting Q1 datapoints cited included revenue ex notables $19.1bn (+4% y/y), PBT ex notables $10.1bn, banking NII Q1 $11.3bn, wealth balances $1.6tn (+12% y/y) and $39bn net new money.HSBC Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 147.86B | 143.29B | 129.51B | 76.17B | 73.95B |
| Gross Profit | 80.78B | 67.40B | 64.44B | 53.72B | 64.25B |
| EBITDA | 29.03B | 36.39B | 33.81B | 20.91B | 23.19B |
| Net Income | 22.34B | 23.98B | 23.53B | 15.56B | 13.92B |
Balance Sheet | |||||
| Total Assets | 3.23T | 3.02T | 3.04T | 2.97T | 2.96T |
| Cash, Cash Equivalents and Short-Term Investments | 635.32B | 284.51B | 299.57B | 350.05B | 422.44B |
| Total Debt | 256.14B | 242.35B | 426.69B | 204.24B | 395.44B |
| Total Liabilities | 3.03T | 2.82T | 2.85T | 2.77T | 2.75T |
| Stockholders Equity | 198.22B | 184.97B | 185.33B | 177.83B | 198.25B |
Cash Flow | |||||
| Free Cash Flow | 25.11B | 61.42B | 35.42B | 22.02B | 100.75B |
| Operating Cash Flow | 29.77B | 65.31B | 39.11B | 26.43B | 104.31B |
| Investing Cash Flow | -37.07B | -76.56B | -62.91B | -34.48B | 27.54B |
| Financing Cash Flow | -21.96B | -26.46B | -17.56B | -6.29B | -10.79B |
HSBC Holdings Technical Analysis
Positive
81.31
Price Trends
91.47
Positive
87.81
Positive
79.48
Positive
Market Momentum
1.07
Negative
52.64
Neutral
50.49
Neutral
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 81.31 is below the 20-day moving average (MA) of 93.10, below the 50-day MA of 91.47, and above the 200-day MA of 79.48, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 52.64 is Neutral, neither overbought nor oversold. The STOCH value of 50.49 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $881.69B | 15.73 | 16.32% | 1.79% | 1.33% | 2.47% | |
73 Outperform | $322.65B | 15.39 | 12.07% | 4.14% | -6.12% | 12.49% | |
72 Outperform | $410.75B | 14.15 | 10.50% | 1.93% | -1.69% | 20.90% | |
68 Neutral | $224.32B | 15.22 | 11.49% | 2.48% | 4.63% | 34.99% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $243.11B | 17.28 | 7.53% | 1.94% | 3.02% | 27.74% | |
65 Neutral | $256.63B | 12.71 | 12.04% | 1.80% | 1.28% | 16.35% |
* Financial Sector Average
HSBC
HSBC Holdings
93.75
35.79
61.74%
BAC
Bank of America
57.88
11.57
24.98%
C
Citigroup
141.76
58.53
70.32%
JPM
JPMorgan Chase
329.05
44.67
15.71%
MUFG
Mitsubishi UFJ
20.16
6.44
46.94%
WFC
Wells Fargo
83.86
5.46
6.97%
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.