HSBC (NYSE:HSBC) Announces Earnings Results, Misses Estimates By $0.10 EPS

HSBC (NYSE:HSBC) released its quarterly earnings data on Tuesday. The financial services provider reported $2.10 EPS for the quarter, missing the consensus estimate of $2.20 by ($0.10), FiscalAI reports. HSBC had a net margin of 18.19% and a return on equity of 13.80%. The company had revenue of $18.68 billion during the quarter, compared to analyst estimates of $18.98 billion.

Here are the key takeaways from HSBC’s conference call:

• Strong, broad-based quarter: Revenue rose 5% to $18.7 billion and profit before tax increased 10% to $10 billion, excluding notable items. HSBC maintained its full-year guidance, with year-to-date return on tangible equity at 18.8%.
• Capital supports further shareholder returns: HSBC announced an additional share buyback of up to $1 billion, supported by a 13.9% CET1 ratio and an estimated 40–50 basis-point CET1 benefit from Basel 3.1 adoption in 2027.
• Cost discipline remains on track: The bank delivered $0.2 billion of simplification savings in the quarter, bringing cumulative savings to $1.9 billion of its $2 billion target, while target-basis cost growth was held to 1% year over year.
• Deposit mix is creating margin pressure: Hong Kong customers continued shifting from low-cost CASA balances into time deposits, while U.K. deposit competition also intensified. Management said deposit growth remains NII-positive and reiterated banking NII guidance of at least $46 billion.
• Strategic disposals will weigh on future revenue: HSBC expects cumulative revenue attrition of about $2.2 billion through 2028 from business disposals, including Australia retail banking and life-insurance transactions, although it expects redeployed costs to generate new growth over time.

HSBC Price Performance

Shares of HSBC opened at $86.38 on Thursday. The company has a market capitalization of $296.15 billion, a price-to-earnings ratio of 12.25, a P/E/G ratio of 0.88 and a beta of 0.58. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.85 and a quick ratio of 0.92. HSBC has a fifty-two week low of $67.56 and a fifty-two week high of $107.92. The business’s 50-day moving average is $99.11 and its 200-day moving average is $93.27.

HSBC Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Friday, November 6th will be issued a $0.50 dividend. The ex-dividend date is Friday, November 6th. This represents a $2.00 annualized dividend and a dividend yield of 2.3%. HSBC’s dividend payout ratio (DPR) is 28.09%.

Analysts Set New Price Targets

A number of research firms have issued reports on HSBC. Erste Group Bank downgraded HSBC from a “buy” rating to a “hold” rating in a research note on Wednesday, July 15th. Weiss Ratings raised HSBC from a “hold (c)” rating to a “buy (b-)” rating in a research note on Wednesday. BNP Paribas Exane downgraded shares of HSBC from a “hold” rating to a “strong sell” rating and dropped their price target for the company from $100.50 to $97.00 in a report on Tuesday, August 4th. Keefe, Bruyette & Woods cut shares of HSBC from a “moderate buy” rating to a “hold” rating in a research note on Sunday, September 13th. Finally, Citigroup reissued a “neutral” rating on shares of HSBC in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $97.00.

HSBC Company Profile

HSBC Holdings plc is a global banking and financial services company headquartered in London. Its principal subsidiary, The Hongkong and Shanghai Banking Corporation, was established in 1865 to facilitate trade between Europe and Asia. HSBC’s shares trade on the New York Stock Exchange in the form of American depositary receipts under the symbol HSBC.

The company provides personal and wealth banking, commercial banking, corporate and institutional banking, investment banking, global markets, and asset management services.