HSBC (HSBC) Stock Analysis

July 23, 2026

This is a peer-relative look at HSBC (HSBC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Banks peers, so every number reads in context rather than in isolation.

Company Profile

HSBC (HSBC) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for HSBC (HSBC)
Profile Item	HSBC
Name	HSBC Holdings plc Sponsored ADR
Country/Region	United Kingdom
GICS Sector	Financials
GICS Industry Group	Banks
GICS Industry	Banks
GICS Sub-Industry	Diversified Banks
Market Capitalization	346.81 billion USD
Currency	USD
Exchange	NYSE
Listing Date	July 16, 1999
Security Type	ADR

Price Performance

Cumulative Growth

HSBC

GSPC

HSBC (HSBC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for HSBC (HSBC) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for HSBC (HSBC) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
Total Return (1Y)	66.79%	29.50%
Total Return (3Y, Annualized)	44.50%	22.98%
Total Return (5Y, Annualized)	37.86%	12.20%

Risk Profile

Drawdown History

HSBC

GSPC

HSBC (HSBC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for HSBC (HSBC) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
Volatility (1Y, Annualized)	27.22%	26.39%
Beta (5Y)	0.59	0.72
Max Drawdown (5Y)	-31.80%	-43.52%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. HSBC is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
Sharpe Ratio (1Y)	2.31	0.96
Sortino Ratio (1Y)	3.62	1.43

Profitability

ROE (TTM)

HSBC (HSBC) posts ROE of 11.61%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

HSBC

Banks industry group

11.61%

Group distribution

Max: 19.84%
Q3: 13.14%
HSBC: 11.61%
Median: 10.82%
Q1: 8.64%
Min: 3.15%

Largest peers

JPM: 17.79%
RY: 16.20%
WFC: 12.58%
HSBC: 11.61%
BAC: 11.20%
MUFG: 9.40%
C: 8.53%

Where HSBC (HSBC) stands on ROE within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

HSBC (HSBC) keeps 34.98% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

HSBC

Banks industry group

34.98%

Group distribution

Max: 47.55%
HSBC: 34.98%
Q3: 34.66%
Median: 30.25%
Q1: 25.91%
Min: 12.81%

Largest peers

HSBC: 34.98%
JPM: 34.92%
RY: 33.69%
BAC: 29.52%
WFC: 27.23%
MUFG: 25.77%
C: 21.83%

Where HSBC (HSBC) stands on net margin within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

operating margin is set aside for HSBC (HSBC) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.

Profitability Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
ROE (TTM)	11.61%	10.82%
ROA (TTM)	0.72%	1.16%
Net Margin (TTM)	34.98%	30.25%
Operating Margin (TTM)	--	--
Gross Margin (TTM)	--	--

Growth

Revenue Growth

HSBC (HSBC) grew revenue 5.38%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

HSBC (HSBC): Revenue Growth across different time periods, set against Banks industry-group medians.

EPS Growth

HSBC (HSBC) grew earnings per share -3.23%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.

HSBC (HSBC): EPS Growth across different time periods, set against Banks industry-group medians.

Growth Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
Revenue Growth (YoY)	5.38%	11.31%
Revenue Growth (3Y CAGR)	9.75%	6.24%
EPS Growth (YoY)	-3.23%	15.83%
EPS Growth (3Y CAGR)	17.49%	3.17%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for HSBC (HSBC) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for HSBC (HSBC) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
Current Ratio (MRQ)	--	--
Debt / Equity (MRQ)	--	--
Net Debt / EBITDA	--	--

Dividends

Dividend Yield (TTM)

HSBC (HSBC) has dividend yield of 0.76%, in the lower peer-yield quartile. Dividend income is lighter than at most industry peers, which may reflect a greater tilt toward reinvestment, buybacks, or growth.

HSBC

Banks industry group

0.76%

Group distribution

Max: 6.20%
Q3: 3.10%
Median: 2.21%
Q1: 1.00%
HSBC: 0.76%
Min: 0.00%

Largest peers

MUFG: 401.68%
RY: 3.02%
WFC: 2.09%
C: 1.86%
BAC: 1.85%
JPM: 1.77%
HSBC: 0.76%

Where HSBC (HSBC) stands on dividend yield within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

HSBC (HSBC) has payout ratio of 61.98%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

HSBC

Banks industry group

61.98%

Group distribution

Max: 74.89%
HSBC: 61.98%
Q3: 42.28%
Median: 28.91%
Q1: 19.60%
Min: 0.00%

Largest peers

HSBC: 61.98%
RY: 41.35%
WFC: 26.16%
BAC: 25.87%
C: 25.86%
JPM: 25.71%
MUFG: 15.74%

Where HSBC (HSBC) stands on payout ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
Dividend Yield (TTM)	0.76%	2.21%
Dividend Payout Ratio (TTM)	61.98%	28.91%

Valuation

P/E Ratio (TTM)

HSBC (HSBC) trades at P/E ratio of 16.36, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

HSBC

Banks industry group

16.36

Group distribution

Max: 21.86
HSBC: 16.36
Q3: 15.93
Median: 13.25
Q1: 11.80
Min: 6.78

Largest peers

RY: 19.42
HSBC: 16.36
MUFG: 16.26
JPM: 14.51
BAC: 13.95
C: 13.87
WFC: 12.55

Where HSBC (HSBC) stands on P/E ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

P/S ratio is not assessed for HSBC (HSBC) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.

P/B Ratio (MRQ)

HSBC (HSBC) trades at 7.95 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

HSBC

Banks industry group

7.95

Group distribution

HSBC: 7.95
Max: 2.34
Q3: 1.64
Median: 1.36
Q1: 1.16
Min: 0.68

Largest peers

HSBC: 7.95
RY: 3.21
JPM: 2.60
MUFG: 2.07
WFC: 1.65
BAC: 1.56
C: 1.16

Where HSBC (HSBC) stands on P/B ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

HSBC (HSBC) metric values compared with Banks industry-group medians
Metric	Current stock: HSBC	Industry group median
P/E Ratio (TTM)	16.36	13.25
P/S Ratio (TTM)	--	--
P/B Ratio (MRQ)	7.95	1.36
Free Cash Flow Yield (TTM)	--	--