FY2027 Earnings Forecast for HSBC Issued By Erste Group Bank

HSBC Holdings plc (NYSE:HSBC) – Investment analysts at Erste Group Bank upped their FY2027 earnings per share estimates for shares of HSBC in a research note issued on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now anticipates that the financial services provider will post earnings per share of $9.55 for the year, up from their previous estimate of $9.50. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for HSBC’s current full-year earnings is $8.55 per share.

HSBC (NYSE:HSBC) last issued its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share for the quarter, topping analysts’ consensus estimates of $2.24 by $0.01. HSBC had a return on equity of 13.80% and a net margin of 18.19%. The firm had revenue of $19.04 billion for the quarter, compared to analyst estimates of $18.66 billion.

HSBC has been the topic of several other research reports. BNP Paribas Exane cut shares of HSBC from a “hold” rating to a “strong sell” rating and cut their price target for the company from $100.50 to $97.00 in a report on Tuesday, August 4th. Citigroup restated a “neutral” rating on shares of HSBC in a report on Wednesday, September 23rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of HSBC in a research report on Monday, August 3rd. Wall Street Zen raised shares of HSBC from a “hold” rating to a “buy” rating in a research report on Saturday, August 29th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating on shares of HSBC in a research note on Thursday, August 6th. Three analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, HSBC has an average rating of “Hold” and a consensus target price of $97.00.

HSBC Price Performance

Shares of HSBC stock opened at $94.28 on Tuesday. The company has a quick ratio of 0.92, a current ratio of 0.85 and a debt-to-equity ratio of 0.67. The company has a market cap of $323.23 billion, a PE ratio of 13.37, a P/E/G ratio of 0.89 and a beta of 0.58. The business has a 50 day moving average of $101.98 and a 200 day moving average of $96.24. HSBC has a 52 week low of $64.64 and a 52 week high of $107.92.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in HSBC. Bank of America Corp DE grew its stake in HSBC by 5.5% in the first quarter. Bank of America Corp DE now owns 2,385,883 shares of the financial services provider’s stock worth $196,811,000 after purchasing an additional 124,201 shares during the period. Royal Bank of Canada raised its holdings in HSBC by 17.3% in the first quarter. Royal Bank of Canada now owns 1,304,192 shares of the financial services provider’s stock worth $107,582,000 after purchasing an additional 192,133 shares in the last quarter. Quantinno Capital Management LP lifted its position in HSBC by 20.9% during the first quarter. Quantinno Capital Management LP now owns 525,775 shares of the financial services provider’s stock valued at $43,371,000 after buying an additional 90,711 shares during the period. Renaissance Technologies LLC lifted its position in HSBC by 391.6% during the first quarter. Renaissance Technologies LLC now owns 524,122 shares of the financial services provider’s stock valued at $43,235,000 after buying an additional 417,500 shares during the period. Finally, First Trust Advisors LP boosted its holdings in shares of HSBC by 1.4% during the 1st quarter. First Trust Advisors LP now owns 500,505 shares of the financial services provider’s stock valued at $41,287,000 after buying an additional 6,891 shares in the last quarter. Hedge funds and other institutional investors own 1.48% of the company’s stock.

HSBC Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, August 14th were given a $0.50 dividend. The ex-dividend date of this dividend was Friday, August 14th. This represents a $2.00 annualized dividend and a dividend yield of 2.1%. HSBC’s dividend payout ratio is currently 28.09%.

Key Stories Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Higher FY2027 earnings estimate: Erste Group Bank raised its HSBC earnings-per-share forecast for fiscal 2027 to $9.55 from $9.50. Although the bank retains a “Hold” rating, the revision signals slightly improved profit expectations and places the forecast well above the current-year consensus of $8.55. HSBC earnings estimate update
• Positive Sentiment: Digital-payments innovation: HSBC and Ant reportedly tested tokenized deposits for payments between artificial-intelligence agents on the Jovay platform. The initiative could support HSBC’s positioning in blockchain-based settlement and next-generation financial infrastructure, although it is still an early-stage test with no immediate earnings impact. HSBC and Ant tokenized deposit test
• Neutral Sentiment: Management and staffing updates: HSBC Singapore appointed Henry Tong to lead Customer, International and Marketing, while the group promoted Tom Zhang. These changes may support execution in important Asian markets but are unlikely to materially affect near-term results. HSBC Singapore appointment
• Neutral Sentiment: Employee share awards: HSBC granted conditional shares under its global employee purchase plan. The awards may aid retention and employee alignment, though they could modestly increase dilution over time. HSBC employee share awards
• Negative Sentiment: Greater use of performance-based pay: HSBC is reportedly phasing out fixed-pay allowances for senior staff in favor of larger bonuses. The move may improve cost flexibility and accountability, but could raise compensation volatility and execution risk if bonus costs increase. HSBC senior staff compensation changes
• Negative Sentiment: Cautious macro backdrop: HSBC strategist Max Kettner warned that market sentiment may deteriorate ahead of earnings season. The comments are not specific to HSBC’s operations but could reinforce broader caution toward financial stocks. HSBC strategist market outlook

About HSBC

HSBC Holdings plc is a global banking and financial services group headquartered in London. Its origins date to the founding of The Hongkong and Shanghai Banking Corporation in 1865, established to support trade between Europe and Asia. HSBC operates through a network spanning major markets in Asia, Europe, the Middle East, North America and Latin America.

The company provides services to personal, commercial and institutional customers. Its activities include retail and wealth banking, commercial banking, global banking and markets, investment banking, trade finance, transaction banking, foreign exchange, lending, insurance and asset management.