HSBC Holdings PLC HSBA

Morningstar Rating
GBX1,437.00 −60.60 (4.05%)
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Company Report

HSBC's Asian Growth Opportunities Help Offset Margin Pressure

HSBC is nearing the end of a multiyear restructuring aimed at simplifying its footprint, reducing costs, and exiting underperforming businesses. The group has substantially unwound acquisitions made in the early 2000s that diluted returns, particularly in markets such as the US where it lacked scale and faced higher regulatory costs. More recently, HSBC has sharpened its geographic focus toward Hong Kong and the UK—its two core markets where it benefits from leading deposit franchises and strong brand recognition. We view this pivot as strategically sound, as scale in these markets underpins a structurally low-cost funding base and supports more resilient profitability. The acquisition of the remaining shares in Hang Seng Bank is expected to further enhance capital flexibility and strengthen HSBC’s position in Hong Kong.

Price vs Fair Value

HSBA is trading at a LOCK|^lpd? premium.
Price
GBX1,437.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

HSBC has cost advantages and significant intangible assets in its core market of Hong Kong that help it generate strong earnings there through economic cycles.

Bears

HSBC has operations in many jurisdictions around the world, including some where it is a secondary player and doesn't enjoy the same advantages that it does in core markets like Hong Kong.

News

Trading Information

Previous Close Price
GBX1,497.60
Day Range
GBX1,427.60–1,497.75
52-Week Range
GBX959.29–1,610.00
Bid/Ask
GBX1,400.00 / GBX1,580.00
Shares Outstanding
17.11B
Market Cap
GBX24.58T
Volume/Avg
26M / 22M

Key Statistics

Price/Earnings (Normalized)
9.39
Price/Sales
4.52
Dividend Yield (Trailing)
3.87%
Dividend Yield (Forward)
3.87%
Dividend Payment Schedule
Apr, Jun, Sep, Dec
Total Yield
4.02%

Company Profile

Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and over 40 million customers worldwide. It operates in over 50 countries with over 200,000 full-time staff. Hong Kong and the United Kingdom are its two largest markets. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Core
Total Number of Employees
206,161

Competitors

Valuation

Metric
HSBA
C
JPM
Price/Earnings (Normalized)
9.3912.3115.00
Price/Book Value
1.891.112.50
Price/Sales
4.522.504.67
Price/Cash Flow
6.627.3010.24
Price/Earnings
HSBA
C
JPM

Financial Strength

Metric
HSBA
C
JPM
Quick Ratio
———
Current Ratio
———
Interest Coverage
———
Quick Ratio
No chart available

Profitability

Metric
HSBA
C
JPM
Return on Assets (Normalized)
0.84%0.74%1.31%
Return on Equity (Normalized)
15.18%10.36%17.86%
Return on Invested Capital (Normalized)
———
Return on Assets
HSBA
C
JPM

Banks - Diversified Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JPMorgan Chase & Co
JPM
LOCK|!<!$PSmhLOCK|<#$886B
Bank of America Corp
BAC
LOCK|?J%<@q?LOCK|&$?$376B
HSBC Holdings PLC ADR
HSBC
LOCK|#G$ym%FLOCK|K&k>$326B
Royal Bank of Canada
RY
LOCK|%%sbw#t&LOCK|PT$270B
Mitsubishi UFJ Financial Group Inc ADR
MUFG
LOCK|><YvSxLOCK|yL$256B
Wells Fargo & Co
WFC
LOCK|HhHdHk^LOCK|$g#$243B
Citigroup Inc
C
LOCK|^>@$qjlLOCK|j$D$213B
Banco Santander SA ADR
SAN
LOCK|^b$^^KpLOCK|@$<@J$194B
The Toronto-Dominion Bank
TD
LOCK|dqwyn^#LOCK|ff$192B
Banco Bilbao Vizcaya Argentaria SA ADR
BBVA
LOCK|hC%%#r%BLOCK|!#vs&$148B

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