# HSBC Holdings (HSBA.LSE)

Canonical: https://gigainvestors.com/s/HSBA.LSE

Analysis as of: 2026-10-16T07:33:30.894Z. Financial observations: FY2015–FY2025.

Listing currency: GBX. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 1,421.20 per share; close as of 2026-10-15.

Estimated value: low GBX 462.74 per share, central GBX 530.09 per share, high GBX 620.38 per share. Buy at or below the central value GBX 530.09 per share. Valuation as of 2026-10-16T07:33:30.894Z; scenarios are not confidence intervals.

Expected annual return: 5.7% at the stated quote. About 5.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.59×

Chart: Net income; fiscal year observations.

- FY2016: $1.3B

- FY2017: $9.7B

- FY2018: $13B

- FY2019: $6.0B

- FY2020: $3.9B

- FY2021: $13B

- FY2022: $15B

- FY2023: $24B

- FY2024: $24B

- FY2025: $22B

### moat: fail

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- median return on common equity below threshold

- return on tangible common equity below 5% in more than one year

- Bank / P&C ROTE, median of available years: 7.4%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 2.2%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 0.9%

- FY2017: 6.7%

- FY2018: 7.8%

- FY2019: 3.6%

- FY2020: 2.2%

- FY2021: 7.1%

- FY2022: 8.9%

- FY2023: 13.6%

- FY2024: 13.9%

- FY2025: 13.6%

### economics: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Book value per share + reinvested dividends, annualized return: 7.6%

- Book return interval: 10 years

- Starting book value per share: $7.86

- Ending book value per share: $9.37

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: -6.9%

- FY2017: 10.9%

- FY2018: 19.5%

- FY2019: 6.3%

- FY2020: 8.6%

- FY2021: 4.3%

- FY2022: -1.3%

- FY2023: 13.4%

- FY2024: 16.4%

- FY2025: 7.5%

### management: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -2.7%

- Share growth excluding flagged crisis recapitalisations: -0.8%

- Five-year share growth excluding flagged crisis recapitalisations: -2.7%

- Flagged crisis recapitalisations: 0

- Book value created per share: $1.51

- Earnings retained per share after dividends and buybacks: -$0.67

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

The price assumes profits grow 7.4% a year forever · "HSBC lifts income outlook, though Madoff lawsuit charges mar profit" (finance.yahoo.com, Oct 2025) · net income -7.1%

Story as of 2026-10-16T09:59:56.524Z; price observation 2026-10-15.

The price assumes profits grow 7.4% a year forever

- 2025-07-30: HSBC Q2 Pre-Tax Earnings Dip on Higher ECL, $3B Buyback Plan Unveiled ([finance.yahoo.com](https://finance.yahoo.com/news/hsbc-q2-pre-tax-earnings-123200358.html))

- 2025-10-28: HSBC lifts income outlook, though Madoff lawsuit charges mar profit ([finance.yahoo.com](https://finance.yahoo.com/video/hsbc-lifts-income-outlook-though-120828734.html))

- 2026-02-27: HSBC Reshapes Returns Story With Record Profit And Hang Seng Deal ([finance.yahoo.com](https://finance.yahoo.com/news/hsbc-reshapes-returns-story-record-011421750.html))

- 2026-04-01: HSBC Weighs 20,000 Job Cuts As AI Shift Reshapes Cost Story ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/hsbc-weighs-20-000-job-151625639.html))

- 2026-05-05: HSBC profits worse than forecast after jump in bad debt provisions ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/hsbc-profits-worse-forecast-jump-074725577.html))

- 2026-10-07: HSBC to axe UK wealth managers in AI push ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/hsbc-axe-uk-wealth-managers-073528274.html))

### Net income · FY2025

net income -7.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: $1.3B 

- FY2017: $9.7B 

- FY2018: $13B 

- FY2019: $6.0B 

- FY2020: $3.9B 

- FY2021: $13B 

- FY2022: $15B 

- FY2023: $24B 

- FY2024: $24B 

- FY2025: $22B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diversified banking; annual sales are USD 134.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:30.894Z); FY2025: revenue 134098000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HSBA.LSE: HSBC Holdings plc engages in the provision of banking and financial products and services worldwide. It operates through four segments: Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking. The Hong Kong segment is involved in the retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. The UK segment engages in UK retail banking and wealth, as well as first direct and M&S Bank, UK Commercial Banking, and HSBC Innovation Bank. The Corporate and Institutional Banking segment is involved in transaction banking and capital markets. The International Wealth and Premier Banking segment is involved in the business comprising premier banking outside of Hong Kong and the UK, its private bank, asset management, and insurance businesses. The company was founded in 1865 and is headquartered in London, the United Kingdom.

### Why customers stay

It earns 7.4% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:30.894Z); 10-year return on tangible equity observations [[2016,0.009486598992185789],[2017,0.06698859194587228],[2018,0.07787715570489698],[2019,0.03644256129725505],[2020,0.022147727272727274],[2021,0.07097417073884747],[2022,0.08906702561082601],[2023,0.13615324978882448],[2024,0.13893701220819404],[2025,0.1355025158989568]]; median 0.07442566322187222. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 12.7 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:30.894Z); Dividend observations: [[2016,8238000000],[2017,9005000000],[2018,10052000000],[2019,9773000000],[2020,2023000000],[2021,6383000000],[2022,6970000000],[2023,12196000000],[2024,17100000000],[2025,11581000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:30.894Z); FY2025: cash repurchases 12664000000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HSBA.LSE SharesStats.PercentInsiders = 0.192 percentage points; cache date 2026-10-16.

### What could break it

Key risk of the UK business has been reported as held for sale at 31 December 2025.

- Source: https://filings.xbrl.org/MLU0ZO3ML4LN2LL2TL39/2025-12-31/ESEF/GB/0/MLU0ZO3ML4LN2LL2TL39-2025-12-31/reports/MLU0ZO3ML4LN2LL2TL39-2025-12-31-T01.html (filed 2026-03-04); The results of these stress tests and the adequacy of management action plans to mitigate these risks are considered in the Group’s ICAAP and the entities’ regulatory Own Risk and Solvency Assessments, which are produced by all material entities. Key risk of the UK business has been reported as held for sale at 31 December 2025. Further details are provided on page 329.

### What the price says

The price assumes profits grow 7.4% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:30.894Z); Price 1421.2; FX 75.34943299551671; original perpetual distributable cash 0.48338183577621346; discount 0.1; growth 0.0743719763255913. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 616.20 per share

- 2016-11: GBX 635.20 per share

- 2016-12: GBX 656.90 per share

- 2017-01: GBX 676.40 per share

- 2017-02: GBX 646.50 per share

- 2017-03: GBX 650.90 per share

- 2017-04: GBX 636.50 per share

- 2017-05: GBX 675.60 per share

- 2017-06: GBX 711.70 per share

- 2017-07: GBX 757.00 per share

- 2017-08: GBX 750.50 per share

- 2017-09: GBX 737.10 per share

- 2017-10: GBX 734.30 per share

- 2017-11: GBX 734.00 per share

- 2017-12: GBX 766.90 per share

- 2018-01: GBX 751.10 per share

- 2018-02: GBX 717.10 per share

- 2018-03: GBX 665.40 per share

- 2018-04: GBX 725.40 per share

- 2018-05: GBX 720.60 per share

- 2018-06: GBX 710.70 per share

- 2018-07: GBX 730.50 per share

- 2018-08: GBX 668.90 per share

- 2018-09: GBX 669.80 per share

- 2018-10: GBX 644.90 per share

- 2018-11: GBX 664.30 per share

- 2018-12: GBX 646.90 per share

- 2019-01: GBX 638.90 per share

- 2019-02: GBX 612.90 per share

- 2019-03: GBX 623.30 per share

- 2019-04: GBX 667.10 per share

- 2019-05: GBX 645.10 per share

- 2019-06: GBX 656.90 per share

- 2019-07: GBX 656.70 per share

- 2019-08: GBX 591.40 per share

- 2019-09: GBX 624.60 per share

- 2019-10: GBX 583.00 per share

- 2019-11: GBX 576.30 per share

- 2019-12: GBX 591.90 per share

- 2020-01: GBX 551.80 per share

- 2020-02: GBX 523.90 per share

- 2020-03: GBX 454.25 per share

- 2020-04: GBX 410.00 per share

- 2020-05: GBX 370.10 per share

- 2020-06: GBX 378.60 per share

- 2020-07: GBX 342.20 per share

- 2020-08: GBX 330.15 per share

- 2020-09: GBX 301.50 per share

- 2020-10: GBX 324.55 per share

- 2020-11: GBX 388.25 per share

- 2020-12: GBX 378.85 per share

- 2021-01: GBX 382.75 per share

- 2021-02: GBX 426.20 per share

- 2021-03: GBX 423.20 per share

- 2021-04: GBX 452.80 per share

- 2021-05: GBX 455.30 per share

- 2021-06: GBX 417.30 per share

- 2021-07: GBX 397.45 per share

- 2021-08: GBX 386.20 per share

- 2021-09: GBX 390.05 per share

- 2021-10: GBX 441.50 per share

- 2021-11: GBX 419.35 per share

- 2021-12: GBX 448.65 per share

- 2022-01: GBX 527.60 per share

- 2022-02: GBX 514.60 per share

- 2022-03: GBX 525.40 per share

- 2022-04: GBX 501.30 per share

- 2022-05: GBX 533.00 per share

- 2022-06: GBX 535.60 per share

- 2022-07: GBX 513.70 per share

- 2022-08: GBX 528.80 per share

- 2022-09: GBX 467.30 per share

- 2022-10: GBX 447.30 per share

- 2022-11: GBX 509.70 per share

- 2022-12: GBX 515.70 per share

- 2023-01: GBX 596.40 per share

- 2023-02: GBX 635.60 per share

- 2023-03: GBX 549.70 per share

- 2023-04: GBX 573.80 per share

- 2023-05: GBX 590.50 per share

- 2023-06: GBX 621.70 per share

- 2023-07: GBX 646.30 per share

- 2023-08: GBX 583.10 per share

- 2023-09: GBX 644.90 per share

- 2023-10: GBX 592.30 per share

- 2023-11: GBX 602.10 per share

- 2023-12: GBX 635.50 per share

- 2024-01: GBX 618.20 per share

- 2024-02: GBX 614.50 per share

- 2024-03: GBX 619.00 per share

- 2024-04: GBX 695.60 per share

- 2024-05: GBX 696.40 per share

- 2024-06: GBX 683.90 per share

- 2024-07: GBX 704.00 per share

- 2024-08: GBX 666.70 per share

- 2024-09: GBX 669.20 per share

- 2024-10: GBX 711.70 per share

- 2024-11: GBX 732.70 per share

- 2024-12: GBX 785.30 per share

- 2025-01: GBX 845.70 per share

- 2025-02: GBX 933.60 per share

- 2025-03: GBX 873.90 per share

- 2025-04: GBX 832.00 per share

- 2025-05: GBX 873.20 per share

- 2025-06: GBX 881.80 per share

- 2025-07: GBX 922.80 per share

- 2025-08: GBX 946.70 per share

- 2025-09: GBX 1,045.00 per share

- 2025-10: GBX 1,063.40 per share

- 2025-11: GBX 1,070.20 per share

- 2025-12: GBX 1,173.80 per share

- 2026-01: GBX 1,285.40 per share

- 2026-02: GBX 1,393.60 per share

- 2026-03: GBX 1,221.60 per share

- 2026-04: GBX 1,349.00 per share

- 2026-05: GBX 1,393.60 per share

- 2026-06: GBX 1,430.80 per share

- 2026-07: GBX 1,576.00 per share

- 2026-08: GBX 1,528.40 per share

- 2026-09: GBX 1,497.60 per share

- 2026-10: GBX 1,430.80 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 486.40 per share, central GBX 535.04 per share, high GBX 594.49 per share

- FY2017: low GBX 485.33 per share, central GBX 533.87 per share, high GBX 593.18 per share

- FY2018: low GBX 468.47 per share, central GBX 515.32 per share, high GBX 572.58 per share

- FY2019: low GBX 398.78 per share, central GBX 461.76 per share, high GBX 548.36 per share

- FY2020: low GBX 497.93 per share, central GBX 547.72 per share, high GBX 608.58 per share

- FY2021: low GBX 401.31 per share, central GBX 463.01 per share, high GBX 547.12 per share

- FY2022: low GBX 380.23 per share, central GBX 438.68 per share, high GBX 518.37 per share

- FY2023: low GBX 402.69 per share, central GBX 464.60 per share, high GBX 549.00 per share

- FY2024: low GBX 451.76 per share, central GBX 513.97 per share, high GBX 596.05 per share

- FY2025: low GBX 451.13 per share, central GBX 516.79 per share, high GBX 604.81 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:16.408Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.