Want to see GB:HSBA full AI Analyst Report?
Top Page
HSBC Holdings
(LSE:HSBA)
Select Model
Select Model
Rating:67Neutral
Price Target:
1,481.00 p
▼(-1.53% Downside)
Action:Downgraded
Date:10/27/26
The score is driven primarily by solid underlying financial performance and a strongly positive earnings call with reaffirmed guidance and shareholder returns. Valuation is supportive (moderate P/E and ~4.1% yield), but the overall score is held back by weak technicals (price below major moving averages and bearish MACD) and mixed/volatile cash-flow trends.
Positive Factors
Broad Revenue and Profit Growth
Broad-based revenue and profit growth across businesses indicates continued customer demand and operating execution. If sustained, this diversified earnings expansion can strengthen HSBC’s ability to invest in its franchises, absorb pressure in individual markets, and support returns over the next several quarters.
Negative Factors
Deposit Margin Pressure
A shift toward higher-cost time deposits can compress the spread between funding costs and asset yields, weakening net interest income even when balances grow. Persistent competition in Hong Kong and the U.K. could therefore limit margin sustainability and make earnings more sensitive to deposit mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad Revenue and Profit Growth
Broad-based revenue and profit growth across businesses indicates continued customer demand and operating execution. If sustained, this diversified earnings expansion can strengthen HSBC’s ability to invest in its franchises, absorb pressure in individual markets, and support returns over the next several quarters.
Read all positive factors
HSBC Holdings (HSBA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£221.28B
Dividend Yield4.31%
Average Volume (3M)21.16M
Price to Earnings (P/E)12.2
Beta (1Y)1.53
Revenue Growth-7.93%
EPS Growth35.55%
CountryUK
Employees209,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.41
Shares Outstanding17,135,023,000
10 Day Avg. Volume22,825,289
30 Day Avg. Volume21,160,098
Financial Highlights & Ratios
PEG Ratio-15.92
Price to Book (P/B)1.55
Price to Sales (P/S)2.05
P/FCF Ratio10.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,544.56Price Target Upside2.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.71
Revenue Forecast (FY)£74.80B
HSBC Holdings Business Overview & Revenue Model
Company Description
HSBC Holdings plc is a multinational financial institution delivering banking and diverse financial solutions across the globe. Its operations are structured into three primary divisions: Wealth and Personal Banking, Commercial Banking, and Global...
How the Company Makes Money
HSBC makes money primarily by earning net interest income and generating fee-based and trading-related revenue across its banking and wealth businesses.
1) Net interest income (interest spread): A major portion of HSBC’s earnings comes from takin...
HSBC Holdings Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. HSBC reported broad-based revenue and profit growth, strong returns, deposit and loan growth, disciplined costs, robust wealth and transaction-banking momentum, capital generation, and confidence in unchanged guidance. The main challenges were deposit-margin pressure in Hong Kong, competitive U.K. deposits, flat wealth fees, margin compression in Asset Management, revenue reductions from strategic disposals, Australia runoff, and a lower CET1 ratio, but management characterized credit performance and the outlook as stable and expressed confidence in the strategy and targets.Positive Updates
Broad-Based Revenue and Profit Growth
Third-quarter revenue increased 5% to $18.7 billion, with growth broad-based across businesses and income lines. Profit before tax, excluding notable items, increased 10% to $10 billion.
Negative Updates
IWPB Revenue Decline
IWPB revenue fell slightly year-on-year. A $0.1 billion impact from strategic transactions and the non-recurrence of approximately $0.1 billion of positive insurance one-off impacts from the third quarter of 2025 more than offset underlying revenue growth.
Read all updates
Q3-2026 Updates
Positive
Negative
Broad-Based Revenue and Profit Growth
Third-quarter revenue increased 5% to $18.7 billion, with growth broad-based across businesses and income lines. Profit before tax, excluding notable items, increased 10% to $10 billion.
Read all positive updates
Company Guidance
HSBC said all guidance remains unchanged: full year banking NII is expected to be at least $46 billion, full year 2026 credit guidance is around 45 basis points, and 2026 cost growth is targeted at 1% compared to 2025 on a target basis, or around 1% cost growth, with variable pay potentially increasing 2026 costs modestly. Its targets are revenue rising to 5% year-on-year growth by 2028, excluding notable items; return on tangible equity of 17% or better, excluding notable items each year; and dividends of 50% of earnings per share, excluding material notable items and related impacts. The estimated Basel 3.1 impact is 40 to 50 basis points from 1st January 2027, while disposals are expected to have a $2.2 billion cumulative impact on revenue, including $700 million in 2026, a $900 million incremental impact next year, and the final $600 million in 2028; HSBC also announced a further up to $1 billion buyback.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 | 134.51B | 134.10B | 143.29B | 129.60B | 76.17B | 73.95B |
| Gross Profit | 73.79B | 71.02B | 67.40B | 64.53B | 53.72B | 64.25B |
| EBITDA | 39.72B | 34.82B | 36.39B | 33.81B | 20.91B | 23.19B |
| Net Income | 25.49B | 22.29B | 23.98B | 23.53B | 15.56B | 13.92B |
Balance Sheet | ||||||
| Total Assets | 3.44T | 3.23T | 3.02T | 3.04T | 2.95T | 2.96T |
| Cash, Cash Equivalents and Short-Term Investments | 632.76B | 609.23B | 821.55B | 299.57B | 539.10B | 422.44B |
| Total Debt | 132.90B | 499.29B | 242.35B | 235.16B | 204.24B | 223.64B |
| Total Liabilities | 3.24T | 3.05T | 2.82T | 2.85T | 2.76T | 2.75T |
| Stockholders Equity | 196.68B | 177.57B | 184.97B | 185.33B | 177.83B | 198.25B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 25.11B | 61.42B | 35.42B | 14.95B | 100.75B |
| Operating Cash Flow | 0.00 | 29.77B | 65.31B | 39.11B | 19.36B | 104.31B |
| Investing Cash Flow | 0.00 | -37.07B | -76.56B | -62.91B | -27.40B | 27.54B |
| Financing Cash Flow | 0.00 | -21.96B | -26.46B | -17.56B | -6.29B | -10.79B |
HSBC Holdings Technical Analysis
Negative
1504.00
Price Trends
1480.30
Negative
1474.96
Negative
1373.00
Negative
Market Momentum
-40.22
Positive
26.70
Positive
18.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSBA, the sentiment is Negative. The current price of 1504 is above the 20-day moving average (MA) of 1408.99, above the 50-day MA of 1480.30, and above the 200-day MA of 1373.00, indicating a bearish trend. The MACD of -40.22 indicates Positive momentum. The RSI at 26.70 is Positive, neither overbought nor oversold. The STOCH value of 18.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £50.17B | 6.68 | 16.16% | 5.52% | 2.78% | 24.91% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £221.28B | 12.19 | 13.03% | 4.31% | -7.93% | 35.55% | |
66 Neutral | £11.41B | 7.96 | 13.45% | 6.28% | -3.55% | 5.64% | |
66 Neutral | £58.45B | 12.67 | 11.05% | 3.93% | -16.61% | 21.26% | |
64 Neutral | £56.13B | 8.34 | 10.79% | 2.72% | 6.60% | 23.56% | |
59 Neutral | £43.74B | 12.50 | 10.35% | 2.55% | -12.87% | 12.23% |
* Financial Sector Average
GB:HSBA
HSBC Holdings
1,296.60
269.69
26.26%
GB:STAN
Standard Chartered
2,068.00
596.26
40.51%
GB:BARC
Barclays
428.90
33.00
8.33%
GB:INVP
Investec
616.50
66.77
12.15%
GB:LLOY
Lloyds Banking
103.90
18.60
21.80%
GB:NWG
NatWest Group
646.80
94.05
17.02%
HSBC Holdings Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
HSBC Grants New Employee Share Awards Under Global Purchase Plan
Positive
Oct 12, 2026
HSBC Holdings plc has granted conditional share awards to employees under its International Employee Share Purchase Plan, covering a total of 274,529.87745 ordinary shares listed in London and Hong Kong. The awards, which carry a two-year vesting ...
Stock BuybackRegulatory Filings and Compliance
HSBC Updates Voting Rights After Cancelling Repurchased Shares
Neutral
Oct 6, 2026
HSBC Holdings has cancelled 6,918,800 ordinary shares of US$0.50 each that had been repurchased on the Hong Kong Stock Exchange as part of its previously announced share buy-back programme. Following this cancellation, the total number of ordinary...
Stock Buyback
HSBC Advances Hong Kong Share Buy-Back With New Repurchase
Positive
Aug 7, 2026
HSBC Holdings has repurchased 340,000 of its US$0.50 ordinary shares on the Hong Kong Stock Exchange from BNP Paribas Financial Markets as part of its latest share buy-back programme. The shares were bought at prices between HK$159.20 and HK$161.1...
Business Operations and StrategyStock Buyback
HSBC cancels 446,000 shares in latest Hong Kong buy-back
Positive
Aug 6, 2026
HSBC Holdings plc has repurchased 446,000 of its US$0.50 ordinary shares on the Hong Kong Stock Exchange for cancellation, as part of the share buy-back programme announced on 5 August 2026. The shares, acquired from BNP Paribas Financial Markets ...
Business Operations and StrategyPrivate Placements and Financing
HSBC Expands Debt Tender Offer and Raises May 2028 Notes Cap
Positive
Aug 6, 2026
HSBC Holdings has raised the maximum amount it is willing to spend on buying back four series of U.S. dollar senior unsecured notes, increasing the aggregate purchase cap from $5 billion to $6.75 billion. The bank also lifted the sub-cap on its Ma...
Regulatory Filings and Compliance
HSBC Confirms Total Voting Rights Following Share Capital Update
Neutral
Jul 31, 2026
HSBC Holdings plc has confirmed that, as of 30 July 2026, its issued share capital consists of 17,183,563,842 ordinary shares of US$0.50 each, with no shares held in treasury. As a result, the total number of voting rights in the company is 17,183...
Business Operations and StrategyDelistings and Listing Changes
HSBC to Redeem £1bn Contingent Convertible Securities and Delist Issue
Positive
Jul 30, 2026
HSBC Holdings plc has elected to redeem in full its £1bn 5.875% perpetual subordinated contingent convertible securities on 28 September 2026, paying £1,000 per £1,000 principal plus accrued interest to holders of record. Once redee...
Business Operations and StrategyExecutive/Board Changes
HSBC Reshapes Key Board Committees to Strengthen Governance
Positive
Jul 30, 2026
HSBC Holdings plc, one of the world’s largest banking and financial services groups, is headquartered in London and serves customers in 56 countries and territories. With assets of US$3,306 billion at 31 March 2026, the bank’s global r...
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.