HSBC Holdings (HSBA) — Company Research
Last Updated: 5 June 2026
HSBC Holdings plc is one of the world's largest banking and financial services organisations. Founded in 1865 and headquartered in London, it is the biggest bank in Europe and ranks among the largest globally, with total assets of US$3.23tn at the end of 2025. Following a multi-year restructuring, HSBC now reports through four global businesses — Hong Kong, the UK, Corporate and Institutional Banking (CIB) and International Wealth and Premier Banking (IWPB) — with the centre of gravity firmly in Asia and the Middle East. This report sets out the company's financials, segments, valuation and risks using only primary-source filings and official data.
1. Company Snapshot
| Field | Value |
|---|---|
| Company | HSBC Holdings plc |
| Ticker | HSBA (London, primary); HSBC (NYSE ADR); 5 (Hong Kong) |
| Exchange | London Stock Exchange — FTSE 100 |
| Sector | Finance & Banking |
| Group CEO | Georges Elhedery |
| Share price | 1,367p (4 June 2026) |
| Market capitalisation | ~£234bn (~US$316bn), June 2026 |
| FY2025 revenue | US$68.3bn |
| FY2025 reported profit before tax | US$29.9bn |
| FY2025 profit after tax | US$23.1bn |
| FY2025 basic EPS | US$1.21 |
| FY2025 dividend per share | US$0.75 |
| Total assets (31 Dec 2025) | US$3.23tn |
| Employees | ~211,000 (208,720 full-time equivalent, end-2025) |
| CET1 ratio | 14.9% (FY2025); 14.0% (Q1 2026) |
2. Bull and Bear Case
Bull Case
- Record underlying profitability: Constant-currency profit before tax excluding notable items rose 7% to US$36.6bn in 2025, with a return on average tangible equity of 17.2% excluding notable items, comfortably meeting the "mid-teens or better" target.
- Asia and wealth franchise: Hong Kong and IWPB drive a high-returning wealth business; wealth balances reached US$1.6tn by Q1 2026, giving HSBC a structurally advantaged position in fast-growing Asian savings pools.
- Capital returns: The 2025 ordinary dividend of US$0.75 (up 14%) plus US$6bn of completed buybacks took total shareholder returns to US$18.9bn, and management has raised its RoTE target to 17% or better for each of 2026–2028.
- Hang Seng simplification: The completed US$13.7bn privatisation of Hang Seng Bank consolidates full ownership of a core Hong Kong asset and removes minority leakage from future profits.
Bear Case
- Geopolitical concentration: The pivot to Asia leaves earnings heavily exposed to Hong Kong, mainland China and US–China tensions, including Chinese commercial real estate and policy risk.
- Rising credit costs: Q1 2026 reported profit before tax slipped to US$9.4bn on higher expected credit losses, and management now guides ECL charges of around 45bps for 2026, above its 30–40bps medium-term range.
- Buybacks paused: To fund the Hang Seng deal HSBC suspended buybacks for three quarters and its CET1 ratio fell to 14.0% in Q1 2026, near the bottom of the target range, capping near-term repurchases.
- Rate sensitivity: A material share of revenue is banking net interest income, which is exposed to falling policy rates despite the cushion from the structural hedge.
3. Business Segments
HSBC reports four global businesses plus a Corporate Centre. The table below shows 2025 revenue (net operating income before expected credit losses) by segment.
| Segment | % of revenue | What it is |
|---|---|---|
| Corporate & Institutional Banking (CIB) | 40% | Wholesale banking, markets, transaction banking and financing for corporates, institutions and governments worldwide (US$27.6bn). |
| Hong Kong | 23% | Retail, wealth and commercial banking in HSBC's largest single market (US$15.9bn). |
| International Wealth & Premier Banking (IWPB) | 21% | Global wealth management, premier and private banking, and insurance (US$14.5bn). |
| UK | 19% | HSBC UK ring-fenced retail and commercial bank (US$12.9bn). |
| Corporate Centre | (4%) | Central functions, legacy positions and consolidation adjustments (US$(2.7)bn). |
Percentages are of the US$68.3bn group total before the Corporate Centre offset. Explore live pricing on our Live Charts page.
4. How HSBC Makes Money
How it works: HSBC earns most of its income as net interest income — the spread between what it earns on loans, securities and central-bank balances and what it pays on its US$1.79tn of customer deposits. Net interest income was US$34.8bn in 2025, up US$2.1bn, helped by the reinvestment of its structural hedge.
Unit economics: The second engine is fee and other income from wealth management, transaction banking, markets and insurance; net fee income was US$13.3bn in 2025, with wealth fee income a key growth driver. The group targets a return on average tangible equity of 17% or better through 2028.
Moat: HSBC's edge is its international network connecting trade and capital flows across more than 50 markets, anchored by a dominant Hong Kong franchise and a large, low-cost Asian deposit base that rivals find hard to replicate.
5. Financial Health
All figures below are taken from HSBC's annual results media releases and Annual Report and Accounts. Revenue is net operating income before change in expected credit losses. HSBC reports in US dollars.
| Year | Revenue (US$bn) | YoY % | GAAP EPS (US$) | Adjusted EPS (US$) | Dividend/share (US$) | Long-term debt (subordinated liabilities, YE, US$bn) |
|---|---|---|---|---|---|---|
| 2021 | 49.6 | n/m | 0.62 | — | — | — |
| 2022 | 51.7 | +4.4% | 0.75 | — | — | — |
| 2023 | 66.1 | n/m | 1.15 | 1.22 | 0.61 | — |
| 2024 | 65.9 | -0.3% | 1.25 | 1.31 | 0.87 | 26.0 |
| 2025 | 68.3 | +3.7% | 1.21 | 1.51 | 0.75 | 28.4 |
The 2022-to-2023 jump is not comparable: HSBC adopted IFRS 17 for insurance and benefited from higher global interest rates, so that year-on-year change is marked n/m. The 2024 dividend of US$0.87 included a US$0.21 special dividend from the sale of the Canada business. "Adjusted EPS" is basic EPS excluding material notable items. "Subordinated liabilities" is shown as the closest analogue to long-term debt for a bank; HSBC also carried US$99.7bn of debt securities in issue at the end of 2025.
The quarterly trend below shows HSBC's most recent five reported quarters, most recent first. Revenue is on the company's headline basis (excluding notable items); profit before tax is reported.
| Quarter | Revenue (US$bn) | Reported PBT (US$bn) | Basic EPS (US$) |
|---|---|---|---|
| Q1 2026 | 19.1 | 9.4 | — |
| Q4 2025 | 17.7 | 6.8 | 0.34 |
| Q3 2025 | 17.9 | 9.1 | 0.26 |
| Q2 2025 | 17.7 | 6.3 | — |
| Q1 2025 | 17.7 | 9.5 | 0.28 |
| FY 2025 | 68.3 | 29.9 | 1.21 |
6. Valuation
Raw metrics, June 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~US$316bn (~£234bn); 17,140m ordinary shares × 1,367p |
| Trailing P/E (GAAP) | ~15x (share price ~US$18.5 / FY2025 basic EPS US$1.21); ~12x on adjusted EPS of US$1.51 |
| P/E (forward) | ~12x (share price ~US$18.5 / consensus-style ~US$1.55 forward adjusted EPS) |
| P/S (TTM) | ~4.6x (market cap ~US$316bn / FY2025 revenue US$68.3bn) |
| Price / tangible book | ~1.9x (price ~US$18.5 / tangible equity per share ~US$9.6; tangible ordinary equity US$165.2bn / 17,140m shares) |
| Dividend yield | ~4.1% (FY2025 dividend US$0.75 ≈ 55.6p / 1,367p) |
| EV/EBITDA (TTM) | Not a meaningful metric for banks — deposits and wholesale funding are operating liabilities, and banks do not report EBITDA. Total assets were US$3.23tn at FY2025. |
| P/FCF | Not meaningful for a bank — free cash flow (operating cash flow minus capex) is not a relevant measure for a deposit-funded balance sheet. |
| Enterprise value | Not applicable to banks — the EV bridge (market cap + debt − cash) is not used for deposit-taking institutions whose borrowings fund lending operations. |
| 52-week high | 1,416.8p |
| 52-week low | 859.4p |
| CET1 ratio | 14.0% (Q1 2026) |
| Short interest (% of float) | — not published for this period. No aggregate net short position above the UK 0.5% disclosure threshold is listed for HSBA on the FCA short-position register; verify via the London Stock Exchange and FCA registers. |
| Days to cover | — not published for this period (see note above). |
7. Capital, Returns and Balance Sheet Strength
HSBC ended 2025 with a CET1 capital ratio of 14.9%, total assets of US$3.23tn, customer accounts of US$1.79tn and net loans and advances to customers of US$988bn, giving a loans-to-deposits ratio of about 55%. Total shareholders' equity was US$198.2bn and tangible ordinary shareholders' equity was US$165.2bn. In Q1 2026 the CET1 ratio fell to 14.0%, reflecting the Hang Seng privatisation, dividends and higher risk-weighted assets; management intends to run CET1 within a 14.0%–14.5% medium-term range. The dividend payout ratio target remains around 50% of EPS excluding material notable items.
8. Peer Comparison
| Peer | Market cap (June 2026) | Key 2025 metric |
|---|---|---|
| JPMorgan Chase (JPM) | Largest US bank; ~US$4.8tn assets at end-2025 | World's most valuable bank by market cap |
| HSBC Holdings (HSBA) | ~US$316bn | FY2025 revenue US$68.3bn; total assets US$3.23tn |
| Standard Chartered (STAN) | UK-listed Asia/EM-focused bank | Closest UK-listed peer by Asia/Middle East footprint |
| Lloyds Banking Group (LLOY) | ~£59bn | FY2025 statutory PBT £6.7bn; UK-only franchise |
HSBC is the largest bank in Europe and ranked among the top ten globally by assets in 2025. For UK-listed financials, compare names on our Live Charts tool.
9. Insider and Director Dealings
Leadership: HSBC is led by Group Chief Executive (CEO) Georges Elhedery, who confirmed the group's targets at the Q1 2026 results on 5 May 2026.
No insider transactions were identified for this period (no director or PDMR dealings recorded). HSBC director and senior-management share dealings are disclosed via Regulatory News Service (RNS) announcements on the London Stock Exchange; readers should consult the latest RNS filings for HSBA for any director transactions.
10. Key Risks
- Geopolitical and geographic concentration (Macro): Heavy exposure to Hong Kong, mainland China and US–China relations, including Chinese commercial real estate and cross-border policy risk.
- Credit losses (Credit): Expected credit loss charges rose in Q1 2026, with 2026 ECL guidance of around 45bps, above the medium-term 30–40bps range.
- Interest-rate sensitivity (Financial): A large portion of revenue is banking net interest income, exposed to falling policy rates despite the structural hedge.
- Regulatory and capital (Regulatory): Operating across many jurisdictions subjects HSBC to evolving capital rules, conduct supervision and the need to manage CET1 within a tight range.
- Restructuring and integration (Operational): Execution risk in the ongoing simplification and the integration of the newly privatised Hang Seng Bank.
- Currency translation (Financial): Reporting in US dollars while earning across many currencies introduces translation volatility in revenue, capital and the dividend.
11. Recent Developments
- 05 May 2026 — Q1 2026 results. HSBC reported profit before tax of US$9.4bn (US$10.1bn excluding notable items) and revenue excluding notable items of US$19.1bn, up 4%. RoTE was 17.3% (18.7% excluding notable items) and a first interim 2026 dividend of US$0.10 was approved.
- 26 Jan 2026 — Hang Seng privatisation completed. HSBC completed the c.US$13.7bn buy-in of Hang Seng Bank, which was delisted from the Hong Kong Stock Exchange on 27 January 2026 and is now wholly owned.
- 25 Feb 2026 — FY2025 results and raised targets. Reported profit before tax of US$29.9bn and a total 2025 dividend of US$0.75; management raised its RoTE target to 17% or better for each year from 2026 to 2028.
- 05 May 2026 — Buybacks paused. To fund the Hang Seng acquisition, HSBC suspended share buybacks for three quarters, with any restart subject to its normal quarterly capital review.
12. Key Dates to Watch
- 04 Aug 2026 — Interim (half-year) 2026 results (per HSBC's financial calendar).
- 27 Oct 2026 — Q3 2026 earnings release (per HSBC's financial calendar).
- 24 Feb 2027 — FY2026 annual results expected (FY2025 results were released 25 Feb 2026).
- 08 May 2026 — Annual General Meeting held; a first interim 2026 dividend of US$0.10 per share was approved at the Q1 results.
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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. HSBC is one of the world's largest banks, earning most of its income from net interest income on a US$1.79tn deposit base plus wealth, markets and transaction-banking fees, with the bulk of profit generated in Asia and the Middle East. In FY2025 it reported revenue of US$68.3bn and reported profit before tax of US$29.9bn (US$36.6bn excluding notable items on a constant-currency basis), a 17.2% RoTE excluding notable items, a US$0.75 dividend and US$6bn of completed buybacks. Management has raised its return-on-tangible-equity target to 17% or better for each year from 2026 to 2028, with the completed Hang Seng privatisation and the Asian wealth franchise as the primary structural drivers.
What would confirm or break it. Continued mid-teens-plus RoTE, resilient banking net interest income and a return to share buybacks at the 04 Aug 2026 interims would confirm the thesis. A sharp rise in expected credit losses (2026 guidance is already around 45bps), a deterioration in Hong Kong or mainland China exposure, or an escalation in US–China tensions affecting the Asia-concentrated balance sheet would invalidate it.
Watchpoints
- ConfirmsInterim (half-year) 2026 results (60 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Record underlying profitability:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Geopolitical and geographic concentration (Macro):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 5 Jun 2026.