HSBC (NYSE:HSBC) Issues Earnings Results

HSBC (NYSE:HSBC) posted its quarterly earnings data on Wednesday. The financial services provider reported $0.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.60 by ($1.23), FiscalAI reports. The company had revenue of $17.72 billion during the quarter, compared to the consensus estimate of $17.01 billion. HSBC had a net margin of 12.85% and a return on equity of 12.78%.

Here are the key takeaways from HSBC’s conference call:

• Delivered a strong full‑year performance with $36.6bn profit before tax, RoTE 17.2%, ordinary dividend up 14% to $0.75, and set targets for year‑on‑year revenue growth rising to 5% by 2028 and RoTE ≥17% for 2026–28.
• Completed the $13.7bn privatization of Hang Seng Bank to consolidate the Hong Kong franchise and target ~$0.9bn of synergies by 2028, but the deal reduces CET1 (≈110bp post‑close) and involves a $0.6bn restructuring notable item.
• Transformation is creating funding for growth — management reports ~$1.5bn of annualized simplification savings delivered ahead of plan, ~$1.8bn being reallocated to priority areas, and guidance for 1% target‑basis cost growth in 2026 while still investing in tech and wealth capabilities.
• Credit and asset‑quality watch: guidance for an ~40bp ECL charge in 2026 and ongoing monitoring of Hong Kong commercial real estate (credit‑impaired CRE with LTV>70% ≈ $1.9bn and ECLs ≈ $0.9bn), which could pressure provisions or capital if conditions worsen.

HSBC Trading Up 0.2%

HSBC traded up $0.17 on Thursday, hitting $94.37. The company had a trading volume of 2,309,643 shares, compared to its average volume of 2,285,788. The company’s fifty day moving average price is $84.10 and its 200 day moving average price is $74.24. HSBC has a 1 year low of $45.66 and a 1 year high of $94.79. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.49. The firm has a market cap of $324.17 billion, a P/E ratio of 19.89, a PEG ratio of 0.94 and a beta of 0.52.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on HSBC shares. Zacks Research upgraded shares of HSBC from a “hold” rating to a “strong-buy” rating in a report on Monday, November 3rd. Keefe, Bruyette & Woods raised shares of HSBC from a “hold” rating to a “moderate buy” rating in a research note on Wednesday, December 17th. Citigroup reaffirmed a “buy” rating on shares of HSBC in a research note on Friday, January 9th. Erste Group Bank upgraded HSBC from a “hold” rating to a “buy” rating in a report on Thursday, November 20th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of HSBC in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $63.00.

Key HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Quarterly and outlook beat: HSBC reported sharp Q4 revenue growth and stronger pre‑tax results, and management lifted medium‑term income/returns targets — a primary driver of the rally. HSBC Q4 Pre-Tax Earnings Increase Y/Y on Higher Revenues, Lower ECL
• Positive Sentiment: Big shareholder payout: HSBC declared a sizable fourth interim dividend (USD 7.71bn total / USD 0.45 per share), supporting investor income expectations. HSBC declares USD 7.71bn fourth interim dividend for 2025
• Positive Sentiment: Strategic disposals: HSBC has begun selling its Singapore life insurance manufacturing unit and is targeting >$1bn value — supports redeployment of capital and one‑off gains. HSBC kicks off Singapore insurance business sale, eyes over $1 billion value
• Positive Sentiment: Cost savings and margin action: HSBC says it hit £1.1bn cost‑savings early and CEO indicates headcount not the primary target — suggests efficiency gains without heavy layoffs. HSBC confirms it has hit £1.1bn cost savings target early
• Positive Sentiment: Market reaction: European markets noted HSBC’s raised lending targets and outlook, helping push regional indexes to record highs and supporting the stock. European shares close at record high on HSBC boost
• Neutral Sentiment: Research & thematic calls: HSBC research published views (eg. “software will eat AI”) and top stock picks — interesting for asset‑management clients but limited direct P&L impact. ‘Software will eat AI,’ HSBC says. Here are the bank’s top picks
• Neutral Sentiment: Minor institutional buying: Brucke Financial bought ~8,181 shares (~$573k) — a small stake that signals some investor interest but is not material. Brucke Financial Inc. Invests $573,000 in HSBC Holdings plc $HSBC
• Neutral Sentiment: Momentum/analyst notes: Several outlets call HSBC a momentum pick after results; analyst tone is cautiously positive but some remain neutral on valuation upside. Are You Looking for a Top Momentum Pick? Why HSBC (HSBC) is a Great Choice
• Negative Sentiment: EPS miss: The company reported EPS well below consensus ($0.37 vs ~$1.60 estimate), a headline that may pressure near‑term sentiment despite revenue beats. HSBC quarterly earnings report and calls
• Negative Sentiment: Capital-return caveat: HSBC warned capital ratios need to improve before buybacks can resume — limits near‑term shareholder returns and could weigh on the equity. HSBC says capital ratios need to improve before it resumes buybacks
• Negative Sentiment: Governance concerns: FT reports higher board fees and criticism over a botched chair search — potential investor unease around governance and oversight. HSBC board earns almost £1mn more despite botched chair search

Hedge Funds Weigh In On HSBC

Hedge funds have recently made changes to their positions in the stock. Morgan Stanley boosted its position in shares of HSBC by 15.3% during the fourth quarter. Morgan Stanley now owns 7,483,883 shares of the financial services provider’s stock worth $588,757,000 after buying an additional 993,473 shares during the period. Northern Trust Corp lifted its stake in HSBC by 4.7% during the 3rd quarter. Northern Trust Corp now owns 3,045,134 shares of the financial services provider’s stock worth $216,144,000 after acquiring an additional 136,342 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in HSBC by 15.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 485,468 shares of the financial services provider’s stock valued at $38,192,000 after acquiring an additional 65,241 shares during the period. Wells Fargo & Company MN grew its position in HSBC by 20.3% in the 4th quarter. Wells Fargo & Company MN now owns 470,511 shares of the financial services provider’s stock valued at $37,015,000 after acquiring an additional 79,382 shares in the last quarter. Finally, Raymond James Financial Inc. increased its stake in HSBC by 34.6% during the third quarter. Raymond James Financial Inc. now owns 455,088 shares of the financial services provider’s stock worth $32,302,000 after purchasing an additional 117,038 shares during the period. Hedge funds and other institutional investors own 1.48% of the company’s stock.

HSBC Company Profile

HSBC Holdings plc (NYSE: HSBC) is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world’s largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.