Is HSBC Holdings stock a buy right now?
HSBC Holdings remains a pillar of stability in the UK banking sector, trading around 833.20p on the London Stock Exchange with a recent average daily trading volume of over 21 million shares. Following the Q1 2025 results, which showed a short-term earnings dip but ongoing progress in cost reductions and wealth management growth, investors have responded with measured confidence rather than alarm. HSBC’s robust capital position, strong deposit base, and renewed focus on operational efficiency—underlined by a forthcoming $3 billion share buyback—underscore its resilience amid global macroeconomic fluctuations. While higher credit losses and reduced revenues are noted, the bank’s international diversification continues to act as a stabilising force. Market sentiment remains constructive, buoyed by the management’s clear guidance and a healthy dividend yield that appeals to income-seeking investors. In a sector characterised by transformation and consolidation, HSBC stands out for its disciplined execution and global reach. The consensus among more than 34 national and international banks places the target price for HSBC shares at approximately 1,080p, reflecting growing institutional confidence in its long-term strategy. This backdrop creates an environment where discerning investors may wish to take a closer look at HSBC’s shares as part of a balanced portfolio.
- Global footprint mitigates regional economic or political shocks.
- Attractive dividend yield supported by reliable quarterly payments.
- Active share buyback programme enhances shareholder returns.
- Ongoing cost-reduction initiatives targeting operational efficiency.
- Strong growth outlook for wealth management and lending.
- Short-term earnings sensitive to global economic and interest rate trends.
- Exposure to Asian and global trade tensions could affect profitability.
- What is HSBC Holdings?
- How much is HSBC Holdings stock?
- Our full analysis on HSBC Holdings </b>stock
- How to buy HSBC Holdings stock in United Kingdom?
- Our 7 tips for buying HSBC Holdings stock
- The latest news about HSBC Holdings
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring the performance of HSBC Holdings for more than three years. Each month, hundreds of thousands of users across the United Kingdom trust us to interpret market trends and highlight the most promising investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid or compensated by HSBC Holdings.
What is HSBC Holdings?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | British-based, benefiting from London’s status as a global financial hub. |
| 💼 Market | London Stock Exchange (LSE: HSBA) | Main listing in London; also on NYSE and HKEX, supporting its global operations. |
| 🏛️ ISIN code | GB0005405286 | Unique identifier for HSBC shares traded on UK and other global markets. |
| 👤 CEO | Georges Elhedery | New CEO brings operational focus and oversees strategic transformation. |
| 🏢 Market cap | $197.07 billion | Large-cap status offers stability and attracts long-term institutional investors. |
| 📈 Revenue | $17.6 billion (Q1 2025), annualised ~$70 billion | Recent quarterly revenue declined 15%, reflecting macroeconomic and currency challenges. |
| 💹 EBITDA | Not separately disclosed; profit before tax: $9.5 billion (Q1 2025) | Healthy profitability, but lower YoY; reflects pressures on margins and credit costs. |
| 📊 P/E Ratio (Price/Earnings) | 10.12 | Attractive relative to peers; indicates reasonable valuation and potential for income investors. |
How much is HSBC Holdings stock?
The price of HSBC Holdings stock is falling this week. As of today, HSBC trades at 833.20p on the London Stock Exchange, representing a 1.69% decrease over the past 24 hours and a modest gain over the week. The company holds a market capitalisation of $197.07 billion, with an average 3-month volume showing strong investor activity. HSBC’s P/E ratio stands at 10.12, and the dividend yield is an attractive 3.63%, highlighting its ongoing commitment to shareholder returns. With a stock beta of 0.42, HSBC’s shares exhibit lower volatility than the broader market, offering a relatively stable option for UK investors seeking both growth and income.
Compare the best brokers in the UK!Compare brokersOur full analysis on HSBC Holdings stock
We have conducted a comprehensive review of HSBC Holdings plc, scrutinising both its most recent earnings release and the stock’s performance over the past three years. Drawing on a powerful blend of financial metrics, technical signals, peer-group comparisons, and our proprietary analytical frameworks, we provide an advanced perspective on where the stock stands in 2025. So, why might HSBC Holdings once again represent a strategic entry point into global diversified banking for investors seeking both growth and steady income as we look ahead?
Recent Performance and Market Context
HSBC Holdings has delivered a remarkable trajectory over the past year, with the stock price climbing to 833.20p on the London Stock Exchange – a level near the upper end of its 52-week range (833.20p close vs. 839.6p/$61.88 high), with the NYSE equivalent at $55.13. This solidifies a year-on-year return of +26.3% and a year-to-date gain of 11.35%, positioning HSBC among the stronger performers in its sector and peer group.
Several positive recent events underpin this strength:
- Robust Capital Returns: HSBC has affirmed an active shareholder payout policy, including a quarterly dividend providing a forward yield of 3.63% and the announcement of a new $3bn share buyback programme (pending AGM approval as of early May 2025).
- Strategic Simplicity: The bank has moved decisively on organisational simplification, aiming for $0.3bn of cost reductions in 2025 and a $1.5bn annualised cost base reduction by end-2026. These actions are expected to enhance future profitability and margin resilience.
- Main Segment Outperformance: Core segments such as Wealth & Personal Banking and Corporate/Institutional Markets recorded high-quality revenue even as group-level results reflected market headwinds.
From a broader lens, the global banking industry in 2025 is benefitting from the anticipated stabilisation of interest rates, a more constructive regulatory backdrop in the UK, and renewed appetite for wealth management services—HSBC's historic strengths. Resilience against regional economic volatility is further enhanced by the Group’s unique footprint across Asia and Europe.
Technical Analysis
HSBC Holdings’ technical profile supports a cautiously bullish stance. The share price is well-supported, trading above its 20-day, 50-day, 100-day, and 200-day simple moving averages—at $52.77, $55.38, $52.17, and $47.33 respectively—confirming sustained upward price action and robust medium-term momentum.
Recent key technical indicators reveal:
- RSI (14 days): 56.27 (neutral, allowing room for further upside, not yet overbought)
- MACD (12,26): 0.46 (marginally bearish, suggesting consolidation but not a major reversal)
- ADX (14): 18.35 (indicative of a weak trend, which often precedes volatility spikes or breakout moves)
- CCI (14): 72.64 (neutral, consolidating phase)
Critical support levels at $54.97 and $52.77 have held firm, offering technical comfort zones for entry. Resistance at $56.08 and $61.88 suggest clear upside targets if bullish momentum strengthens. While oscillators are mainly neutral, the prevailing price-action above trend averages points to a positive structure, with consolidation considered not weakness, but a potential pause before a further move higher.
Fundamental Analysis
On the fundamentals, HSBC Holdings exhibits financial robustness and appealing valuation characteristics:
Earnings Momentum and Growth Prospects
- Q1 2025 profit before tax of $9.5bn demonstrates resilience, even amid challenging revenue headwinds (YoY decrease, but high in peer context).
- Net Interest Income (NII): At $8.3bn per quarter, NII is expected to stabilise around $42bn for 2025, benefiting as interest rate trends normalise.
- Fee-income growth: Wealth businesses delivered double-digit annualised growth, affirming management focus and sector demand.
Valuation Metrics
- P/E Ratio (TTM): 10.1, attractive relative to sector averages, reflecting both earnings stability and unrecognised upside amid a still-muted P/E expansion across global banks.
- P/B Ratio: 1.02 suggests the market recognises asset book quality but leaves open further re-rating potential.
- Dividend Yield: At 3.63% (forward), HSBC’s payout is both sustainable and compelling, supported by resilient capital (target CET1 ratio 14–14.5%) and a recurring buyback cycle.
Strategic Strengths
- Diversification: Broad international franchise dampens region-specific shocks, evidenced by ongoing profitability across both growth (Asia) and stability-focused (UK) markets.
- Brand and Market Position: As one of the world’s foremost banking brands, HSBC commands customer trust and top-tier institutional flows.
- Innovation: Investments in Asian digital wealth, fintech innovation, and simplification initiatives prepare the bank to capture emerging demographics and margin opportunities.
Collectively, these factors underpin a solid fundamental case, with valuation multiples that arguably discount much of the short-term risk while capitalising on existing and future structural strengths.
Volume and Liquidity
HSBC stands out for exceptional volume characteristics that reinforce investor confidence:
- Deep liquidity: Daily trading volumes remain elevated across London, Hong Kong, and NYSE listings, providing efficient price discovery and low transaction spreads.
- Healthy float: The substantial free float attracts significant institutional action, supporting dynamic valuation and lowering volatility risk for new entrants.
- Active buybacks: The newly announced $3bn buyback initiative is anticipated to further tighten supply and buoy the share price, providing a technical tailwind through the remainder of 2025.
This healthy trading backdrop is particularly advantageous for investors seeking to build or adjust positions at scale.
Catalysts and Positive Outlook
Several promising catalysts position HSBC for further upside:
- Cost Optimisation: Aggressive operating expense reduction via strategic simplification will unlock margin, improve earnings flexibility, and support a higher RoTE, already targeted in the mid-teens through 2027.
- Wealth Management Growth: Management projects mid- to high-single-digit customer lending growth and double-digit wealth fee-income growth over the medium term, leveraging both Asia’s affluent and UK’s high-net-worth segments.
- Shareholder Returns: The anticipated buyback and progressive dividend policy underscore management’s focus on delivering capital back to shareholders and lift overall total return prospects.
- Interest Rate Environment: Although recent results reflected above-average credit losses, the outlook for rate stabilisation (especially in GBP and HKD markets) can meaningfully benefit net interest margins and drive upward earnings revision by year-end.
- ESG Leadership: HSBC’s ongoing sustainability initiatives and support for transition finance (green and social bonds issuance) increasingly appeal to ESG-conscious investors and position the bank favourably with sovereign clients and regulators.
Moreover, the bank’s operational leverage to improvement in consumer confidence and corporate capital markets activity creates headroom for positive earnings surprises as macro uncertainty fades.
Investment Strategies
From a positioning standpoint, HSBC offers multiple attractive entry points across different horizons:
- Short-term: The current technical setup—trading just above multi-month support and ahead of the May ex-dividend and buyback trigger—suggests an ideal moment for tactical positions, especially as volatility remains modest and liquidity is deep.
- Medium-term: With a visible catalyst in the $3bn buyback programme and continued delivery on cost discipline, investors may find the coming quarters ripe for value realisation as the bank’s earnings base normalises and expands.
- Long-term: For investors seeking compounding total return, HSBC’s secular strengths—broad diversification, strong franchise, and ongoing investments in high-potential wealth and digital platforms—support a robust buy-and-hold thesis. Recurring, reliable dividends with growing payout room further sweeten the proposition.
Entry at present levels—just off support, before the full impact of buyback and cost savings are priced in—appears especially compelling. Investors may find value positioning either incrementally (averaging in before catalysts) or via a core allocation for income and defensive growth.
Is it the Right Time to Buy HSBC Holdings?
Bringing the analysis together, HSBC Holdings combines formidable fundamentals, attractive technical levels, and a visible pipeline of growth and efficiency catalysts. The bank’s ability to deliver stable profitability and a progressive dividend through complex cycles reflects both the depth of its global franchise and its deliberately conservative risk management culture. With a sound capital base, best-in-class geographic reach, and management focus on cost discipline and shareholder returns, HSBC seems to represent an excellent opportunity for investors seeking exposure to major banking at an inflection point in the sector.
While macroeconomic volatility and regulatory change warrant ongoing monitoring, HSBC’s current valuation, combined with strong liquidity, a new buyback, and positive segment momentum, justifies renewed interest at these levels. The technical landscape—supported by price holding above key moving averages and consolidating near support—reinforces the view that HSBC may be entering a new bullish phase.
For those looking to combine income, growth, and resilience within a single sector leader, HSBC Holdings deserves to be high on the buy list as 2025 unfolds. The convergence of supportive fundamentals and multiple near-term catalysts makes now an especially timely moment to give this global banking blue-chip the close attention it warrants.
How to buy HSBC Holdings stock in United Kingdom?
Buying HSBC Holdings shares online is straightforward and secure for UK investors, thanks to regulated brokers that strictly follow FCA (Financial Conduct Authority) guidelines. You can typically choose between spot buying—where you become a direct shareholder—and trading via CFDs (Contracts for Difference), which offer leverage and flexibility but do not grant ownership of the underlying shares. Each method has unique benefits and costs, and your choice will depend on your investment goals and risk appetite. To help you decide, we've provided a detailed broker comparison further down the page.
Spot buying
A cash (spot) purchase of HSBC Holdings means you buy actual shares traded on the London Stock Exchange (ticker: HSBA), making you a part-owner entitled to dividends and voting rights. Most UK broker platforms charge a fixed commission per order—typically £4 to £10. For example, if the HSBC Holdings share price is around 833p (or £8.33), you could buy approximately 119 shares with a £1,000 investment, factoring in a typical £5 brokerage fee.
Example
✔️ Gain scenario:
If the share price increases by 10%, your holding would now be worth £1,100.
Result: That’s a £100 gross gain, or a 10% return on your investment (excluding stamp duty and other minor fees).
Trading via CFD
CFD trading allows you to speculate on the price movement of HSBC Holdings without owning the actual shares. This method provides access to leverage—meaning you can amplify your potential returns (or losses)—and typically involves paying the spread (difference between buy and sell price) and overnight financing fees if you keep positions open beyond a day. For instance, with a £1,000 deposit and 5x leverage, you gain £5,000 worth of exposure to HSBC Holdings.
Example
✔️ Gain scenario:
If HSBC Holdings rises 8%, your position earns 8% × 5 = 40%.
Result: That’s a £400 gain on a £1,000 stake (excluding trading fees).
Final advice
Before making any investment, it’s vital to compare brokerage fees, available markets, account features, and regulatory protections. Your optimal method—spot buying for long-term ownership, or CFDs for short-term trading with leverage—depends on your personal objectives and risk profile. For detailed information on top UK brokers and to find the best offer for your needs, consult the comparison table further down the page.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying HSBC Holdings stock
| 📊 Step | 📝 Specific tip for HSBC Holdings |
|---|---|
| Analyze the market | Evaluate HSBC Holdings’ role as a globally diversified bank, focusing on its recent financial resilience and how shifts in UK and Asian markets may impact performance. |
| Choose the right trading platform | Opt for a UK-regulated broker that allows direct access to the London Stock Exchange (HSBA), ensuring competitive fees and straightforward GBP transactions. |
| Define your investment budget | Determine an investment amount suitable for your financial goals, keep capital diversified, and consider HSBC’s steady dividend as part of your income strategy. |
| Choose a strategy (short or long term) | For long-term growth, leverage HSBC’s dividend yield and share buyback programme; for short-term opportunities, monitor technical levels and quarterly results. |
| Monitor news and financial results | Track HSBC’s regular financial reports, announcements on cost reductions and share buybacks, and stay alert to macroeconomic and regulatory updates affecting banks. |
| Use risk management tools | Implement stop-loss orders and position sizing to protect investments, especially in light of HSBC’s exposure to global economic changes. |
| Sell at the right time | Consider realising gains near historical technical resistance points or before significant earnings releases or ex-dividend dates to optimise returns. |
The latest news about HSBC Holdings
HSBC Holdings has announced the launch of a $3 billion share buyback program, commencing after its May 2, 2025, Annual General Meeting. This strategic move marks one of the largest active capital return initiations among UK-headquartered banks and is seen as a strong signal of management’s confidence in the bank’s underlying financial health and future prospects. Analysts note that such share repurchase programmes can provide immediate support to share price performance by reducing the number of outstanding shares, thereby improving earnings per share and delivering direct value to shareholders—an attractive feature for UK-based investors seeking resilient capital growth amid fluctuating macroeconomic conditions.
HSBC’s primary London-listed shares have risen over 11% year-to-date and 26% over the past twelve months, significantly outperforming the FTSE 100 banking sector. The strong price action has been fuelled by solid operational results in key business segments with particular strength in wealth management and trading-related activities. This outperformance reflects HSBC’s successful adaptation to the UK and global economic landscape, with a broad diversified business mix and robust risk controls. UK analysts point out that compared to domestic rivals, HSBC’s global reach insulates it from localised shocks and has positioned it as a core holding for institutional and retail investors alike.
HSBC confirmed on May 2, 2025, its intention to maintain a progressive dividend policy, declaring a first interim dividend for 2025 and confirming the next ex-dividend date as May 9, 2025. This underlines HSBC’s continued commitment to shareholder returns, which is a critical investment criterion for the UK investment community. The forward annual dividend yield stands at an attractive 3.63%, with quarterly payments offering a stable income stream for UK savers and pension funds. HSBC’s payout reliability is frequently cited as a differentiator within the UK financial sector, especially amid ongoing economic uncertainty.
Despite macroeconomic headwinds, HSBC’s Q1 2025 results show robust lending growth in the UK and solid performance in the International Wealth and Premier Banking segment. Customer lending balances jumped by $14 billion quarter-on-quarter, notably benefiting the UK market through increased mortgage and business lending. The resilience shown in wealth fee income—experiencing double-digit growth rates—aligns with HSBC’s pivot to higher-margin business areas, supporting earnings stability even as net interest margins came under pressure from rate volatility. Such signals provide reassurance about the bank’s ability to generate sustainable profits from its core UK and global franchises.
HSBC is advancing its organizational simplification strategy, aiming for $0.3 billion in cost reductions in 2025, with a longer-term target of $1.5 billion by 2026. This efficiency drive involves streamlining UK and European operations, leveraging technology and automation, and reducing operational overlaps—measures expected to reinforce the bank’s operating margin in a challenging regulatory and cost environment. Market observers in the UK regard these actions as supportive of long-term profitability and competitiveness, with benefits likely to accrue to shareholders as cost discipline translates into improved return on equity and capital ratios.
FAQ
What is the latest dividend for HSBC Holdings stock?
HSBC Holdings currently pays a quarterly dividend. The forward annual dividend is $2.00 per share, with the next payment of $0.10 per share scheduled for June 20, 2025 (ex-dividend date: May 9, 2025). HSBC has a long history of consistent dividend payouts and offers a dividend yield attractive to income-focused investors. The company maintains a stable distribution policy, which has been a key part of its appeal amid sector volatility.
What is the forecast for HSBC Holdings stock in 2025, 2026, and 2027?
Based on current market data, the projected share price for HSBC Holdings is 1,083.16p at the end of 2025, 1,249.80p by the end of 2026, and 1,666.40p at the end of 2027. These forecasts reflect positive momentum and HSBC’s ongoing transformation, including growth in wealth management and efficiency improvements. The bank’s global footprint and strong fundamentals support a credible pathway for continued share price appreciation.
Should I sell my HSBC Holdings shares?
Holding onto HSBC Holdings shares may be a sound decision, considering the company’s global diversification, robust balance sheet, and commitment to returning capital through both dividends and share buybacks. Despite recent earnings volatility, HSBC’s long-term strategic focus and resilience in core markets provide confidence for medium- and long-term growth prospects. Investors looking for a blend of stability and growth may find HSBC’s fundamentals attractive for a continued hold.
Are dividends and capital gains from HSBC Holdings shares eligible for tax exemptions or special schemes in the UK?
Yes, HSBC Holdings shares can be held in an Individual Savings Account (ISA) or a Self-Invested Personal Pension (SIPP), offering tax advantages such as exemption from UK tax on dividends and capital gains. However, there may be a small withholding tax on foreign dividends, which is not reclaimable in an ISA. For investments outside these wrappers, UK taxpayers receive a tax-free dividend allowance, but dividend income above this is subject to personal tax rates.
What is the latest dividend for HSBC Holdings stock?
HSBC Holdings currently pays a quarterly dividend. The forward annual dividend is $2.00 per share, with the next payment of $0.10 per share scheduled for June 20, 2025 (ex-dividend date: May 9, 2025). HSBC has a long history of consistent dividend payouts and offers a dividend yield attractive to income-focused investors. The company maintains a stable distribution policy, which has been a key part of its appeal amid sector volatility.
What is the forecast for HSBC Holdings stock in 2025, 2026, and 2027?
Based on current market data, the projected share price for HSBC Holdings is 1,083.16p at the end of 2025, 1,249.80p by the end of 2026, and 1,666.40p at the end of 2027. These forecasts reflect positive momentum and HSBC’s ongoing transformation, including growth in wealth management and efficiency improvements. The bank’s global footprint and strong fundamentals support a credible pathway for continued share price appreciation.
Should I sell my HSBC Holdings shares?
Holding onto HSBC Holdings shares may be a sound decision, considering the company’s global diversification, robust balance sheet, and commitment to returning capital through both dividends and share buybacks. Despite recent earnings volatility, HSBC’s long-term strategic focus and resilience in core markets provide confidence for medium- and long-term growth prospects. Investors looking for a blend of stability and growth may find HSBC’s fundamentals attractive for a continued hold.
Are dividends and capital gains from HSBC Holdings shares eligible for tax exemptions or special schemes in the UK?
Yes, HSBC Holdings shares can be held in an Individual Savings Account (ISA) or a Self-Invested Personal Pension (SIPP), offering tax advantages such as exemption from UK tax on dividends and capital gains. However, there may be a small withholding tax on foreign dividends, which is not reclaimable in an ISA. For investments outside these wrappers, UK taxpayers receive a tax-free dividend allowance, but dividend income above this is subject to personal tax rates.
