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HSBC Holdings Plc (HSBC)
NYSE:HSBC
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HSBC Holdings
(NYSE:HSBC)
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Rating:81Outperform
Price Target:
$74.00
â–²(2.48% Upside)
HSBC's strong financial performance, positive earnings call, and reasonable valuation contribute significantly to its overall score. The technical analysis supports a bullish outlook, although challenges in specific markets like Hong Kong's commercial real estate pose potential risks. Overall, HSBC is well-positioned for stability and growth.
HSBC Holdings (HSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$248.57B
Dividend Yield4.54%
Average Volume (3M)1.32M
Price to Earnings (P/E)14.3
Beta (1Y)0.62
Revenue Growth-2.96%
EPS Growth-13.66%
CountryUS
Employees211,940
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.95
Shares Outstanding3,450,448,200
10 Day Avg. Volume1,350,204
30 Day Avg. Volume1,317,994
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 Cap1.86
Enterprise Value/Revenue3.87
Enterprise Value/Gross Profit7.02
Enterprise Value/Ebitda16.84
Forecast
1Y Price Target
$74.00Price Target Upside2.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook, highlighting strong financial performance, significant growth in customer base, and advancements in digital services. However, concerns remain regarding challenges in the Hong Kong commercial real estate market and the Bank of Communications impairment.Q2-2025 Updates
Positive Updates
Strong Half-Year Performance
Revenue in the first half grew 6% to $35.4 billion. Profit before tax was 5% higher at $18.9 billion. Annualized return on tangible equity was 18.2%, up 1.2% year-on-year.
Growth in Customer Base
In Hong Kong, HSBC attracted 100,000 new-to-bank customers every month, and in the U.K., the loan book grew by $6 billion over the quarter on a constant currency basis.
Dividend and Share Buyback
Announced a $0.10 dividend per share and a share buyback of up to $3 billion, bringing total shareholder distributions to $9.5 billion for the half-year.
Deposit Growth
Deposits grew by $83 billion year-on-year, a 5% increase, showing strong liquidity and customer trust.
Progress in Wealth Management
Fee and other income in Wealth businesses grew 21% year-on-year. Net new invested assets were $22 billion in the quarter.
Organizational Simplification Savings
On track to deliver $1.5 billion in simplification savings by the end of 2026, with $0.4 billion recognized in 2025.
Advancements in Digital Services
Launched HSBC Tokenised Deposit Services in Hong Kong and Singapore, with further expansion planned, enhancing cross-border payment capabilities.
Negative Updates
Hong Kong Commercial Real Estate Challenges
Increased ECL guidance due to ongoing pressures in Hong Kong commercial real estate, with a $1.1 billion charge in the second quarter.
Bank of Communications Impairment
A $1 billion impairment related to Bank of Communications, impacting other operating income.
Company Guidance
During the call, HSBC's leadership provided guidance and insight into their financial performance and strategic initiatives. They reported a 6% revenue growth in the first half of 2025, reaching $35.4 billion, and a 5% increase in profit before tax, totaling $18.9 billion. The bank announced a $0.10 dividend per share and a share buyback of up to $3 billion, with total shareholder distributions amounting to $9.5 billion for the half year. HSBC maintained its full-year banking net interest income (NII) guidance at around $42 billion despite challenges like HIBOR headwinds. They also projected a revised full-year expected credit loss (ECL) guidance of around 40 basis points, an increase from the previous 30 to 40 basis points range. The bank highlighted its ongoing efforts in organizational simplification, aiming to realize $1.5 billion in cost savings by 2026. Additionally, HSBC emphasized its strategic exits from non-core activities and investments in growth areas, such as their Wealth business and digital initiatives like HSBC Tokenised Deposit Services. The leadership reaffirmed their mid-teens return on tangible equity guidance for 2025 through 2027.HSBC Holdings Financial Statement Overview
Summary
HSBC has demonstrated 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.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 | 119.37B | 61.25B | 56.35B | 76.17B | 73.95B | 77.46B |
| Gross Profit | 65.82B | 67.40B | 64.44B | 53.72B | 64.25B | 63.28B |
| EBITDA | 27.45B | 36.39B | 33.81B | 20.91B | 23.19B | 14.02B |
| Net Income | 18.82B | 23.98B | 23.53B | 15.56B | 13.92B | 5.23B |
Balance Sheet | ||||||
| Total Assets | 3.21T | 3.02T | 3.04T | 2.97T | 2.96T | 2.98T |
| Cash, Cash Equivalents and Short-Term Investments | 246.36B | 284.51B | 299.57B | 350.05B | 422.44B | 328.73B |
| Total Debt | 486.32B | 242.35B | 426.69B | 204.24B | 395.44B | 378.87B |
| Total Liabilities | 3.04T | 2.82T | 2.85T | 2.77T | 2.75T | 2.78T |
| Stockholders Equity | 171.84B | 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
72.21
Price Trends
66.15
Positive
63.09
Positive
57.61
Positive
Market Momentum
1.54
Negative
72.19
Negative
89.08
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 72.21 is above the 20-day moving average (MA) of 69.54, above the 50-day MA of 66.15, and above the 200-day MA of 57.61, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 72.19 is Negative, neither overbought nor oversold. The STOCH value of 89.08 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $248.57B | 14.31 | 10.69% | 4.54% | -2.96% | -13.66% | |
74 Outperform | $375.09B | 14.83 | 9.46% | 2.09% | 4.95% | 20.49% | |
74 Outperform | $852.51B | 15.91 | 16.13% | 1.79% | 4.00% | 8.73% | |
74 Outperform | $177.47B | 14.67 | 9.43% | 1.34% | 0.82% | 28.48% | |
70 Outperform | $179.93B | 14.45 | 6.64% | 2.33% | 0.52% | 89.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $258.42B | 13.84 | 11.51% | 2.05% | 0.37% | 19.89% |
* Financial Sector Average
HSBC
HSBC Holdings
72.21
29.09
67.46%
BAC
Bank of America
50.64
11.60
29.71%
C
Citigroup
97.74
37.01
60.94%
JPM
JPMorgan Chase
310.03
102.47
49.37%
MUFG
Mitsubishi UFJ
15.76
5.55
54.36%
WFC
Wells Fargo
80.67
24.75
44.26%
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.