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HSBC Holdings PLC ADR HSBC Stock Quote

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Morningstar‘s Stock Analysis HSBC

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HSBC's Q3 Result Solid, Outlook Mixed on Economic Uncertainty

Michael Wu, CAIA Senior Equity Analyst

Analyst Note

| Michael Wu, CAIA |

While HSBC’s third-quarter result was solid, the mixed outlook confirms market expectation of upcoming economic headwinds. Profit before tax was up 18% against the same period last year to USD 6.5 billion. This was driven by higher net interest income against the same period last year, offset by lower net fee income. As expected, net fee income was 11% lower against the same period last year, on weaker equity markets for wealth management, and more subdued capital markets activities in global banking and markets. Operating expense increased 5% against the same period last year, but this was against a low base in 2021, with operating expense after nine months flat on the same period last year. There is no change in guidance of flat operating expense in 2022. We adjust our fair value estimate 6% lower to HKD 75 per share for the Hong Kong listing, GBX 800 for the U.K. listing and USD 49 per ADR, as we lift our credit cost assumptions.

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Key Statistics HSBC

Company Profile HSBC

Business Description

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 40 million customers worldwide. It operates across 64 countries with around 220,000 full time staff. Key regions include Asia, Europe, the Middle East and North Africa, and North America. United Kingdom and Hong Kong are the two largest markets for the bank. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.

8 Canada Square
London, E14 5HQ, United Kingdom
T +44 2079918888
Industry Banks - Diversified
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 218,866

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