NYSE:HSBC

HSBC Holdings P L C (HSBC)

91.53
+0.73 (0.80%)
as of Jun 8, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

HSBC Holdings PLC has demonstrated a solid performance across key financial metrics, including net interest margin, efficiency ratios, capital ratios, return on assets (ROA), and loan-to-deposit ratios, which have been better than anticipated. The bank has effectively cleaned up its balance sheet and appears well-positioned for growth, particularly in emerging markets where it has a significant focus. While some experts suggest taking profits due to healthy gains, others emphasize the importance of holding as banks respond similarly to macroeconomic variables. There's a consensus that HSBC is relatively well-placed compared to other institutions, especially within Europe where valuations in banks are perceived to be more favorable than in North America. However, the potential for interest rates to remain unchanged or increase could further bolster the bank's attractiveness.

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Consensus
Hold
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Valuation
Fair Value
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PARTIAL BUY
5 year hold? There are two overhangs right now: Brexit; and Hong Kong (where it is headquartered). He believes both issues will be resolved, but there is still time required. Interest rate declines globally are creating headwinds. He thinks the dividend is relatively safe. It may be a buy here, but it really needs interest rates to rise to grow earnings.
DON'T BUY
He stays away. People used to be bullish on the Chinese economy. They are very strongly involved in the UK. He has stayed away from European banks. It is not growing the way people expected.
COMMENT
It is a Hong Kong focused Asian bank -- two hot spots right now. Democracy will hopefully prevail in Hong Kong, but it is tough for the bank right now.
BUY
It has been flat lining lately. It could be a good buy here again as it wants to re-trade back to $42. He sees about a 15% return for this one. A one stop global bank.
WEAK BUY

HSBC-N vs. ING-N. He prefers ING-N. HSBC-N is not an expensive stock. They are well capitalized. They have a great Asian exposure. It is not expensive but a lot more expensive than a lot of its peers. The whole sector is on sale.

PAST TOP PICK
(A Top Pick Sep 11/18, Down 8%) This was a political overlay that got caught up with the Brexit issues. The balance sheet is better than Canadian banks. He thinks they could increase dividends and begin to buyback shares. At these levels, this is an attractive story. A corporate bank that does well internationally. He would continue to hold.
DON'T BUY
He owned the stock 8 or 9 years ago. He anticipated at the time that when China opened up the financial area they would be a beneficiary but China did not open up the area the way he hoped. He thinks there is no urgency to jump on this unless China opens up on this. It trades at 10 times earnings.
DON'T BUY

HSBC vs. ING. HSBC is a global bank, strong in Asia and the UK. ING is already restructured, more of a retail bank. Neither is expensive. But you can buy US banks at cheap multiples today. US banks are in better shape, more capital, fewer issues to worry about like negative interest rates. (Analysts’ price target is $45.90)

DON'T BUY

ING vs. HSBC Neither. He won't touch any European bank given negative interest rates. Period. HSBC does a lot of international lending and international flows aren't well-received by regulators; and they lend to the Far East. HSBC isn't a leader in many categories. ING, at least, leads in online banking in Europe, but they have loaned heavily to energy.

COMMENT
They've suffered like all global banks, hurt by low interest rates. He likes this sector though, and this is a quality name with a safe, decent dividend.
COMMENT
Don't buy it for the yield. Pickup in revenues, but they're cutting costs. Growth in retail banking, loans, deposits, and wealth management gave them a decent quarter. As for the currency, the CAD has been range bound. As time goes by, currency risk becomes benign, so don't worry about it.
PAST TOP PICK
(A Top Pick Jan 22/18, Down 21%) Taken a hit because of the UK. Still likes the banks. Get high single digit returns, and with the volatility these days, you should take that.
DON'T BUY
On international banks they have all followed the same pattern. There is nothing wrong with the operating part of them but we don’t have normalized interest yield curves yet. It is a good one and a big one.
DON'T BUY
vs. Wells Fargo Used to own it, but they kept stepping on their own toes. He shifted that money to US banks (not Wells Fargo). HSBC tried to shrink to grow, but that strategy didn't work. WF you have to look at with a longer time horizon. Even a Canadian or another US bank is better to own.
PAST TOP PICK
(A Top Pick Oct 13/17, Down 15%) The franchise is still good. The fact that they have operations in Europe and Asia affected them from a fund flow perspective. This is a solid bank.
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