0.77%
7.81%
18.96%
20.26%
36.96%
60.47%
53.44%
AI Spotlight on HSBA
Company Description
HSBC Holdings plc provides banking and financial services worldwide.The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments.The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.
This segment serves personal banking and high net worth individuals.The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services.It serves small and medium sized enterprises, mid-market enterprises, and corporates.
The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities.It serves government, corporate and institutional clients, and private investors.HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.
Market Data
| Last Price | 846.66 |
| Change Percentage | 0.77% |
| Open | 843.4 |
| Previous Close | 840.2 |
| Market Cap ( Millions) | 151171 |
| Volume | 20396966 |
| Year High | 849.8 |
| Year Low | 572.9 |
| M A 50 | 774.92 |
| M A 200 | 702.46 |
Financial Ratios
| FCF Yield | 0.00% |
| Dividend Yield | 0.07% |
| ROE | 12.54% |
| Debt / Equity | 0.00% |
| Net Debt / EBIDTA | 290011.49% |
| Price To Book | 0.99 |
| Price Earnings Ratio | 8.1 |
| Price To FCF | 0 |
| Price To sales | 2.76 |
| EV / EBITDA | 739.41 |
News
- Jan -29 - HSBC Plans to Exit Parts of IB Units in U.K., Europe & U.S.
- Jan -29 - HSBC sunsets year-old app Zing
- Jan -29 - Year of the Snake: from fireworks to cash, Hong Kong banks vie to lure mainland visitors
- Jan -29 - Analysis-HSBC's global brand in the balance as it doubles down on Asia bet
- Jan -28 - Delta Capita and HSBC sign multi-year deal for OTC derivatives services
- Jan -28 - HSBC slashes investment bank to focus on China
- Jan -28 - HSBC to wind down parts of investment banking units in UK, Europe and US
- Jan -28 - HSBC to Reportedly Scale Back Investment Banking in Europe, UK, and Americas
- Jan -28 - I Own 4 High-Yield Dividend Stocks. Here's Why I Own Each One.
- Jan -28 - HSBC plans biggest investment banking retrenchment in decades, memo shows
- Jan -28 - HSBC plans biggest investment banking retrenchment in decades
- Jan -28 - HSBC’s Zing shutdown a $150m innovation misstep, says GlobalData
- Jan -27 - Is HSBC Holdings plc (HSBC) the Best European Bank Stock to Buy According to Analysts?
- Jan -24 - HSBC to shutter international payments app Zing
- Jan -23 - HSBC scraps global money app Zing a year after launch
- Jan -23 - HSBC launches its presence at GIFT City in Gujarat, India
- Jan -23 - HSBC touts 50% increase in suspicious transactions intercepted in past year
- Jan -23 - HSBC's payments app closure puts around 400 jobs at risk, source says
- Jan -22 - HSBC bolsters wealth capabilities in India
- Jan -22 - Best credit card deals of the week, 22 January
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Global Banking and Markets
Expected Growth : 5 %
What the company do ?
Global Banking and Markets is the investment banking and markets division of HSBC Holdings plc, providing corporate and institutional clients with a range of capital markets and advisory services.
Why we expect these perspectives ?
HSBC's Global Banking and Markets segment growth is driven by increasing trade volumes, rising demand for investment products, and expansion into emerging markets. Strong corporate lending, growth in transaction banking, and a solid performance in markets and securities services also contribute to the segment's growth.
Segment n°2 -> Commercial Banking
Expected Growth : 3 %
What the company do ?
HSBC Commercial Banking provides financial services to small and medium-sized enterprises, corporates, and institutions, offering a range of products and services to support their business needs.
Why we expect these perspectives ?
HSBC's Commercial Banking growth is driven by increasing trade finance activities, rising demand for cash management and liquidity solutions, and expansion into high-growth markets in Asia. Additionally, strategic partnerships, digital transformation, and cost savings initiatives contribute to the segment's growth.
Segment n°3 -> Wealth and Personal Banking
Expected Growth : 4 %
What the company do ?
Wealth and Personal Banking from HSBC Holdings plc provides retail banking and wealth management services to individuals and families, offering a range of products and services to manage their finances.
Why we expect these perspectives ?
HSBC's Wealth and Personal Banking segment growth is driven by increasing demand for wealth management services, expansion in Asia, and digital transformation. Strong brand recognition, diversified product offerings, and strategic partnerships also contribute to growth. Additionally, rising affluence in emerging markets and increasing adoption of digital banking channels support the segment's 4% growth.
Segment n°4 -> Corporate Centre
Expected Growth : 2 %
What the company do ?
The Corporate Centre of HSBC Holdings plc is the central headquarters that oversees and supports the bank's global operations, strategy, and governance.
Why we expect these perspectives ?
HSBC's Corporate Centre growth is driven by strategic cost management, efficient capital allocation, and disciplined risk management. The 2% growth is attributed to the centre's focus on simplifying and rationalizing its operations, investing in digital transformation, and enhancing its risk management capabilities, thereby improving overall efficiency and reducing costs.
Hsbc Holdings Plc Products
| Product Range | What is it ? |
|---|---|
| Retail Banking | Provides personal banking services to individuals, including current and savings accounts, credit cards, personal loans, and mortgages. |
| Wealth and Personal Banking | Offers investment and wealth management services, including insurance, pensions, and investments. |
| Commercial Banking | Provides financial services to small and medium-sized enterprises, including business lending, cash management, and trade finance. |
| Global Banking and Markets | Offers investment banking, markets, and securities services to corporate and institutional clients. |
| Global Private Banking | Provides wealth management services to high net worth individuals and families. |
| Transaction Banking | Offers cash management, trade finance, and securities services to corporate and institutional clients. |
HSBC Holdings plc's Porter Forces
Threat Of Substitutes
HSBC's threat of substitutes is moderate due to the presence of alternative banking services and digital payment platforms. However, the complexity of banking services and the need for regulatory compliance limit the threat of substitutes.
Bargaining Power Of Customers
HSBC's customers have low bargaining power due to the bank's large customer base and diversified product offerings. Additionally, the complexity of banking services makes it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
HSBC's suppliers have low bargaining power due to the bank's large scale of operations and its ability to negotiate favorable terms with suppliers.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the banking industry, including regulatory requirements and the need for significant capital investments.
Intensity Of Rivalry
The intensity of rivalry in the banking industry is high due to the presence of several large players, including JPMorgan Chase, Bank of America, and Citigroup. HSBC faces intense competition in terms of pricing, product offerings, and customer service.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 55.93% |
| Debt Cost | 6.73% |
| Equity Weight | 44.07% |
| Equity Cost | 6.73% |
| WACC | 6.73% |
| Leverage | 126.89% |
HSBC Holdings plc : Quality Control
HSBC Holdings plc passed 1 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| INGA.AS | ING Groep N.V., a financial institution, provides various banking products and services in the Netherlands, Belgium, Germany, Poland, Rest of Europe, North America, Latin America, Asia, and Australia. It operates … |
| UBSG.SW | UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through four divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and … |
| NWG.L | NatWest Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through … |
| BARC.L | Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK … |
| BBVA.MC | Banco Bilbao Vizcaya Argentaria, S.A., together with its subsidiaries, provides retail banking, wholesale banking, and asset management services. It offers current accounts; and demand, savings, overnight, time, term, and subordinated … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Barclays
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BBVA
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HSBC
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NatWest
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ING
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