# HSBC Holdings (LSE:HSBA)

As of Sun 8 Nov 2026 12:00 UTC (weekly snapshot). Full report: https://standard-equity.report/LSE/HSBA

Price £13.05 (GBP), market cap £223.2B, Financials - Banks - Diversified.

## Valuation

- SE Reference Value (expected value, DCF): £12.83 (central 50% range £10.71 to £14.96), -2% against the price; range width moderate
- SE Grade: 1 of 3 (Value 1, Quality 1, Moat 1)
- Consensus Rating: Buy (Strong buy 4, Buy 2, Hold 10, Sell 1, Strong sell 0)
- Consensus Price (mean): £15.13, +16% against the price

## Key metrics

Financials in USD. Peer percentile: 100 = best in the peer group.

| Metric | Now | 5Y median | 10Y median | Peers |
|---|---|---|---|---|
| Revenue | $71.53B | CAGR 5.9% | CAGR 3.8% | P73 |
| Revenue growth | 14.9% | 3.7% | 4.3% | P87 |
| NIM | 1.6% | 1.6% | 1.6% | P27 |
| Efficiency ratio | 43.3% | 49.4% | 59.7% | P90 |
| Net margin | 37.0% | 31.5% | 24.6% | P83 |
| Net interest income | $36.74B | CAGR 4.8% | CAGR 1.7% | - |
| Net interest income growth (FY2025) | 6.3% | 6.3% | -0.1% | P43 |
| ROTE | 14.4% | 11.4% | 7.4% | P60 |
| ROE | 13.7% | 11.0% | 6.6% | P77 |
| ROA | 0.8% | 0.7% | 0.5% | P73 |
| EPS | $1.53 | CAGR 44.2% | CAGR 38.2% | - |
| EPS growth | 60.5% | 15.6% | 15.6% | P93 |
| Book value per share | $11.33 | CAGR 3.1% | CAGR 2.8% | - |
| Tangible book value per share | $10.59 | CAGR 3.9% | CAGR 3.5% | - |
| Dividend per share | $0.75 | CAGR 38.0% | CAGR 4.4% | - |
| Dividend yield | 4.3% | 6.1% | 5.6% | P73 |
| Payout ratio | 49.0% | 53.2% | 70.7% | P67 |
| Diluted shares | 17,107.9M | CAGR -2.8% | CAGR -1.4% | P63 |
| Buyback yield | 0.6% | 1.9% | 0.4% | P63 |
| Equity/assets | 5.7% | 6.4% | 6.8% | P43 |
| Assets | $3.445T | CAGR 1.6% | CAGR 3.5% | P83 |
| Long-term debt | $575.7B | CAGR 2.5% | CAGR 4.8% | P77 |

## Company Note (Q3 2026)

Written by AI from the data above.

**HSBC's third quarter rested** on its core banking franchise. Revenue rose 4.7% year on year and diluted EPS jumped 46.4%. Banking net interest income grew strongly on balance sheet growth in both loans and deposits. Wholesale transaction banking fees climbed on trade guarantees in Asia and payments volumes, and foreign exchange income rose on client demand during higher market volatility. The shares look fairly priced: SE fair value of £13 is 1.3% below the price.

**Management maintained every FY2026 target**. Banking NII is reiterated at no less than $46 billion, cost growth around 1% on a target basis, which may rise modestly on variable pay, and the credit impairment charge around 45 basis points. Strategy centres on winding down Australian retail banking, building common technology platforms with Hang Seng Bank and redeploying cost from disposals into growth businesses. Analysts pressed on 2027 costs; management gave no guidance there, pointing to redeployment and synergies. Revenue momentum is slowing sharply, while consensus still points to growth in both coming years.

**Analysts expect EPS growth** of 13.3% in FY2026, easing to 9.7% in FY2027, on FY2026 revenue growth of 12.3%. That revenue figure sits awkwardly beside the third quarter's slowdown, which suggests the year's growth was front-loaded. Our own EPS projections sit below consensus in both years, so we see less earnings power than the market. EPS beat in 6 of the last 8 quarters, though the latest quarter missed. For a fairly priced stock, the room for estimates to fall matters more than the room for them to rise.

**Operating discipline has improved**. The efficiency ratio fell from 59.7% in FY2022 to 49.4% in FY2025, and ROE rose from 7.8% to 11.0% over the same span. Net margin now stands at 37.0%, above its five-year median, better over three years and in the 83rd percentile of peers. ROE of 13.7% also sits above its median and ranks in the 77th percentile of peers. Quality is still held back by a thin return on assets and a narrow spread of ROE over the cost of equity.

**The rerating is already** in the price. P/B of 1.55x is 87% above its 10-year median of 0.83x, and P/TBV of 1.66x is 84% above its median of 0.90x. SE fair value of £13 is 1.3% below the price, held with medium confidence. The analyst target of £15 is 16.0% above the price. For the price to hold, the improvement in returns has to prove durable as Hong Kong and UK deposit competition squeezes margins. Banking NII falling short of the reiterated full-year floor would show it is not.

**The SE Score** is 1 of 3. Quality earned one star because a three-year median ROE of 12% clears the 9.7% cost of equity by only a little, while return on assets stays slim. Moat earned one star because ROE topped 12% in just 2 of the last 10 years, a short record of strong returns for a lender this size. Value earned one star and left the business tier as it was, since the price sits near SE fair value.

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Weekly snapshot, not live data. For information only, not investment advice. Methodology: https://standard-equity.report/methodology