HSBC Holdings
HSBC Holdings plc provides banking and financial products and services. The last earnings update was 62 days ago. More info.
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HSBA Share Price and Events
7 Day Returns
1 Year Returns
HSBA Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| HSBC Holdings (HSBA) | 1.6% | 8.7% | 3.9% | -5.8% | 45% | 10.9% |
| GB Banks | 1% | 7.9% | 4.8% | -8.7% | 17% | -11.2% |
| GB Market | 0.6% | 3.6% | 6.9% | 1.1% | 15.6% | 6.2% |
1 Year Return vs Industry and Market
- HSBA outperformed the Banks industry which returned -8.7% over the past year.
- HSBA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
HSBA Value
Is HSBC Holdings undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
HSBC Holdings
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for HSBC Holdings.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 19 analysts.
= Stable Book Value * Return on Equity = $9.01 * 8.5% |
$0.77 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 11 analysts. | $9.01 |
| Discount Rate (Cost of Equity) | See below | 13.5% |
| Perpetual Growth Rate | 10-Year GB Government Bond Rate | 1.2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year GB Govt Bond Rate | 1.2% |
| Equity Risk Premium | S&P Global | 6.7% |
| Banks Unlevered Beta | Simply Wall St/ S&P Global | 0.59 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 19%) (345.32%)) |
1.839 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.84 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.839 * 6.65%) |
13.46% |
Discounted Cash Flow Calculation for LSE:HSBA using Excess Returns Model Model
The calculations below outline how an intrinsic value for HSBC Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (8.5% – 13.46%) * $9.01) |
$-0.45 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $-0.45 / (13.46% - 1.23%) |
$-3.64 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $9.01 + $-3.64 |
$5.37 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | USD/GBP
(Reporting currency to currency of LSE:HSBA) |
0.77 |
| Value per Share (GBP) |
= Value per Share in USD x Exchange Rate (USD/GBP)
= $5.37 x 0.77 |
£4.13 |
| Value per share (GBP) | From above. | £4.13 |
| Current discount | Discount to share price of
£6.67
= -1 x (£6.67 - £4.13) / £4.13 |
-61.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of HSBC Holdings is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for HSBC Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
HSBC Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $0.63 |
| LSE:HSBA Share Price ** | LSE (2019-04-18) in GBP | £6.67 |
| LSE:HSBA Share Price converted to USD reporting currency | Exchange rate (GBP/ USD) 1.298 | $8.65 |
| United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio | Median Figure of 15 Publicly-Listed Banks Companies | 10.35x |
| United Kingdom of Great Britain and Northern Ireland Market PE Ratio | Median Figure of 797 Publicly-Listed Companies | 16.29x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of HSBC Holdings.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = LSE:HSBA Share Price ÷ EPS (both in USD) = 8.65 ÷ 0.63 |
13.65x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HSBC Holdings is overvalued based on earnings compared to the GB Banks industry average.
- HSBC Holdings is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does
HSBC Holdings's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.65x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts |
6.6%per year |
| United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio | Median Figure of 14 Publicly-Listed Banks Companies | 0.86x |
| United Kingdom of Great Britain and Northern Ireland Market PEG Ratio | Median Figure of 564 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.65x ÷ 6.6% |
2.07x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HSBC Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
HSBC Holdings's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $8.20 |
| LSE:HSBA Share Price * | LSE (2019-04-18) in GBP | £6.67 |
| LSE:HSBA Share Price converted to USD reporting currency | Exchange rate (GBP/ USD) 1.298 | $8.65 |
| United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio | Median Figure of 16 Publicly-Listed Banks Companies | 0.88x |
| United Kingdom of Great Britain and Northern Ireland Market PB Ratio | Median Figure of 1,367 Publicly-Listed Companies | 1.51x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = LSE:HSBA Share Price ÷ Book Value per Share (both in USD) = 8.65 ÷ 8.20 |
1.05x |
* Primary Listing of HSBC Holdings.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HSBC Holdings is overvalued based on assets compared to the GB Banks industry average.
Value checks
We assess HSBC Holdings's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) HSBC Holdings has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
HSBA Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- HSBC Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
- HSBC Holdings's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
- HSBC Holdings's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| LSE:HSBA Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts | 6.6% |
| LSE:HSBA Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts | 4.8% |
| United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 12.7% |
| United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 4.6% |
| United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate | Market Cap Weighted Average | 11% |
| United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate | Market Cap Weighted Average | 4.8% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 62,161 | 16,267 | 3 | |
| 2021-12-31 | 60,969 | 15,593 | 14 | |
| 2020-12-31 | 58,949 | 15,127 | 18 | |
| 2019-12-31 | 56,010 | 14,205 | 16 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 52,131 | 12,214 | 12,608 |
| 2018-09-30 | 51,866 | 10,797 | |
| 2018-06-30 | 51,105 | -107,447 | 9,856 |
| 2018-03-31 | 50,411 | 9,639 | |
| 2018-01-01 | 49,628 | -112,689 | 9,683 |
| 2017-09-30 | 46,545 | 5,517 | |
| 2017-06-30 | 42,961 | -9,043 | 1,942 |
| 2017-03-31 | 43,504 | 541 | |
| 2016-12-31 | 44,562 | 77,877 | 1,299 |
| 2016-09-30 | 46,117 | 3,464 | |
| 2016-06-30 | 51,618 | 125,233 | 9,310 |
| 2016-03-31 | 54,511 | 11,201 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
All data from HSBC Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-12-31 | 0.80 | 0.83 | 0.75 | 3.00 |
| 2021-12-31 | 0.74 | 0.82 | 0.68 | 10.00 |
| 2020-12-31 | 0.73 | 0.86 | 0.64 | 14.00 |
| 2019-12-31 | 0.69 | 0.75 | 0.61 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.63 |
| 2018-09-30 | 0.54 |
| 2018-06-30 | 0.50 |
| 2018-03-31 | 0.48 |
| 2018-01-01 | 0.48 |
| 2017-09-30 | 0.28 |
| 2017-06-30 | 0.10 |
| 2017-03-31 | 0.03 |
| 2016-12-31 | 0.07 |
| 2016-09-30 | 0.18 |
| 2016-06-30 | 0.49 |
| 2016-03-31 | 0.58 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess HSBC Holdings's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
HSBC Holdings has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
HSBA Past Performance
How has HSBC Holdings performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- HSBC Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- HSBC Holdings's 1-year earnings growth exceeds its 5-year average (30.8% vs -16.4%)
- HSBC Holdings's earnings growth has not exceeded the GB Banks industry average in the past year (30.8% vs 42.2%).
Earnings and Revenue History
All data from HSBC Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 52,131.00 | 12,608.00 | 33,845.00 | |
| 2018-09-30 | 51,866.00 | 10,797.00 | 34,188.00 | |
| 2018-06-30 | 51,105.00 | 9,856.00 | 34,188.00 | |
| 2018-03-31 | 50,411.00 | 9,639.00 | 34,188.00 | |
| 2018-01-01 | 49,628.00 | 9,683.00 | 34,188.00 | |
| 2017-09-30 | 46,545.00 | 5,517.00 | 35,791.00 | |
| 2017-06-30 | 42,961.00 | 1,942.00 | 35,791.00 | |
| 2017-03-31 | 43,504.00 | 541.00 | 35,791.00 | |
| 2016-12-31 | 44,562.00 | 1,299.00 | 35,791.00 | |
| 2016-09-30 | 46,117.00 | 3,464.00 | 38,831.00 | |
| 2016-06-30 | 51,618.00 | 9,310.00 | 38,831.00 | |
| 2016-03-31 | 54,511.00 | 11,201.00 | 38,831.00 | |
| 2015-12-31 | 56,018.00 | 12,572.00 | 38,831.00 | |
| 2015-09-30 | 58,887.00 | 14,785.00 | 40,313.00 | |
| 2015-06-30 | 59,455.00 | 12,987.00 | 40,313.00 | |
| 2015-03-31 | 57,513.00 | 13,163.00 | 40,313.00 | |
| 2014-12-31 | 57,277.00 | 13,115.00 | 40,313.00 | |
| 2014-09-30 | 57,805.00 | 15,324.00 | 37,625.00 | |
| 2014-06-30 | 56,275.00 | 15,093.00 | 37,625.00 | |
| 2014-03-31 | 56,245.00 | 14,489.00 | 37,625.00 | |
| 2013-12-31 | 58,683.00 | 15,631.00 | 37,625.00 | |
| 2013-09-30 | 56,931.00 | 16,002.00 | 41,958.00 | |
| 2013-06-30 | 56,089.00 | 15,300.00 | 41,958.00 | |
| 2013-03-31 | 56,333.00 | 17,226.00 | 41,958.00 | |
| 2012-12-31 | 52,923.00 | 13,454.00 | 41,958.00 | |
| 2012-09-30 | 54,482.00 | 12,723.00 | 40,141.00 | |
| 2012-06-30 | 57,896.00 | 15,447.00 | 40,141.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- HSBC Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- HSBC Holdings used its assets less efficiently than the GB Banks industry average last year based on Return on Assets.
- Unable to establish if HSBC Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Past performance checks
We assess HSBC Holdings's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
HSBC Holdings has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
HSBA Health
This company is a bank or financial institution.Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Balance sheet
Assets
Liabilities and shares
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from HSBC Holdings Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 194,249.00 | 603,542.00 | 878,985.00 |
| 2018-09-30 | 193,232.00 | 612,774.00 | 847,492.00 |
| 2018-06-30 | 191,294.00 | 637,553.00 | 873,810.00 |
| 2018-03-31 | 203,562.00 | 607,006.00 | 895,706.00 |
| 2018-01-01 | 196,224.00 | 439,220.00 | 863,030.00 |
| 2017-09-30 | 198,744.00 | 490,410.00 | 903,694.00 |
| 2017-06-30 | 195,786.00 | 546,384.00 | 909,943.00 |
| 2017-03-31 | 186,026.00 | 503,177.00 | 853,915.00 |
| 2016-12-31 | 182,578.00 | 536,371.00 | 861,800.00 |
| 2016-09-30 | 195,312.00 | 597,251.00 | 939,995.00 |
| 2016-06-30 | 198,297.00 | 648,758.00 | 966,335.00 |
| 2016-03-31 | 200,367.00 | 604,893.00 | 908,853.00 |
| 2015-12-31 | 197,518.00 | 533,310.00 | 801,511.00 |
| 2015-09-30 | 201,429.00 | 566,898.00 | 882,198.00 |
| 2015-06-30 | 201,382.00 | 568,412.00 | 873,788.00 |
| 2015-03-31 | 196,494.00 | 671,902.00 | 1,018,363.00 |
| 2014-12-31 | 199,978.00 | 640,460.00 | 988,396.00 |
| 2014-09-30 | 202,165.00 | 619,053.00 | 964,525.00 |
| 2014-06-30 | 198,722.00 | 629,189.00 | 1,067,605.00 |
| 2014-03-31 | 192,448.00 | 669,532.00 | 996,716.00 |
| 2013-12-31 | 190,459.00 | 647,090.00 | 992,359.00 |
| 2013-09-30 | 187,694.00 | 487,201.00 | 909,813.00 |
| 2013-06-30 | 182,361.00 | 569,926.00 | 1,084,549.00 |
| 2013-03-31 | 183,748.00 | 539,713.00 | 908,815.00 |
| 2012-12-31 | 183,129.00 | 623,465.00 | 981,739.00 |
| 2012-09-30 | 179,764.00 | 577,439.00 | 932,439.00 |
| 2012-06-30 | 173,766.00 | 630,028.00 | 933,296.00 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- HSBC Holdings has an acceptable proportion of non-loan assets held.
- HSBC Holdings's liabilities are made up of primarily low risk sources of funding.
- Loans at HSBC Holdings are broadly funded by customer deposits.
- HSBC Holdings's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
- HSBC Holdings has a low allowance for bad loans.
- HSBC Holdings has an acceptable level of bad loans (less than 2%).
Financial health checks
We assess HSBC Holdings's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) HSBC Holdings has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
HSBA Dividends
What is HSBC Holdings's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
£2,000 of
HSBC Holdings
shares you are expected to receive
£118
in your first year as a dividend.
Dividend Amount
- HSBC Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
- HSBC Holdings's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield | Market Cap Weighted Average of 14 Stocks | 4.9% |
| United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield | Market Cap Weighted Average of 705 Stocks | 4.2% |
| United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield | 10th Percentile | 1% |
| United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield | 25th Percentile | 2% |
| United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield | 75th Percentile | 5.2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-12-31 | 0.51 | 3.00 |
| 2021-12-31 | 0.51 | 15.00 |
| 2020-12-31 | 0.52 | 19.00 |
| 2019-12-31 | 0.51 | 18.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-03-25 | 0.510 | 6.057 |
| 2018-02-20 | 0.510 | 5.738 |
| 2017-02-21 | 0.510 | 5.462 |
| 2016-02-22 | 0.510 | 7.207 |
| 2015-02-23 | 0.500 | 6.086 |
| 2014-02-24 | 0.490 | 4.859 |
| 2013-03-04 | 0.450 | 4.139 |
| 2012-11-16 | 0.360 | 3.365 |
| 2012-07-30 | 0.360 | 3.885 |
| 2012-02-27 | 0.410 | 4.739 |
| 2012-01-09 | 0.360 | 4.228 |
| 2011-08-24 | 0.360 | 4.521 |
| 2011-05-03 | 0.360 | 3.678 |
| 2011-02-28 | 1.440 | 13.601 |
| 2010-03-15 | 0.340 | 3.311 |
| 2010-03-01 | 0.340 | 3.246 |
| 2009-11-02 | 0.320 | 2.834 |
| 2009-05-05 | 0.320 | 3.293 |
| 2009-04-23 | 0.640 | 9.124 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of
HSBC Holdings's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.2x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
Income/ dividend checks
We assess HSBC Holdings's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can HSBC Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) HSBC Holdings has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
HSBA Management
CEO
| COMPENSATION | $4,753,676 |
| AGE | 49 |
| TENURE AS CEO | 1.2 years |
CEO Bio
Mr. John Michael Flint has been Group Chief Executive and Executive Director of HSBC Holdings plc since February 21, 2018 and serves as its Member of Group Management Board. Mr. Flint serves as Group Chief Executive Officer of HSBC Bank Plc. He was the Chief Executive of Retail Banking & Wealth Management at HSBC Holdings plc since January 1, 2013 until January 31, 2018 and its Group Managing Director since December 2012. He served as Group Group Head of Strategy & Planning and Chief of Staff at HSBC Holdings plc from January 2012 to December 31, 2013. He served as the Chief Executive Officer of HSBC Global Asset Management (UK) Limited until December 2011. He served as the Chief Executive Officer of HSBC Global Asset Management Arm from January 2010 to December 2011. He served as the Chief Executive of Global Asset Management, Group General Manager, Deputy Head of Global Markets and Group Treasurer at HSBC Bank Plc. He joined HSBC in 1989. He served at HSBC in Asia helping to establish and expand the HSBC Global Markets business in the region and served as the Regional Head of Balance Sheet Management for the Europe, Middle East and Africa Region since 2004. He served as the Group Treasurer and assumed global responsibility for balance sheet management at HSBC since 2006. He served as Director of HSBC Bank Canada since February 2012. He served as a Non-Executive Director of HSBC Global Asset Management (Hong Kong) Ltd until January 06, 2012. He is a Member of the Institute of International Finance Market Monitoring Group. He serves as Chairman of The HongKong and Shanghai Banking Corporation Limited since February 21, 2018. He was appointed as a director of The HongKong and Shanghai Banking Corporation Limited on 16 January 2018. Mr. John is a member of the Monetary Authority of Singapore International Advisory Panel and the International Business Council of the World Economic Forum. He is also a member of the Climate Finance Leadership Initiative. He holds a B.Sc (Hons) in Economics.
CEO Compensation
- Insufficient data for John to compare compensation growth.
- John's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure and age of the HSBC Holdings management team in years:
- The tenure for the HSBC Holdings management team is about average.
Management Team
John Flint
Group Chief Executive
$5M
49
1.2 yrs
Menasey Moses
Group Chief Risk Officer
$4M
60
8.3 yrs
Ewen Stevenson
Group CFO & Executive Director
52
0.3 yrs
Peter Wong
Member of the Group Management Board
67
Samir Assaf
CEO of Global Banking & Markets Business and Member of the Group Management Board
58
Pat Burke
Member of the Group Management Board & Group Managing Director
56
3.7 yrs
António P. Simões
Chief Executive of Global Private Banking & Member of Group Management Board
43
Stuart Levey
Chief Legal Officer & Member of the Group Management Board
54
7.3 yrs
Manveen Kaur
Head of Wholesale Market & Credit Risk
54
6 yrs
Andy Maguire
Chairman of Advisory Board
51
3.7 yrs
Board of Directors Tenure
Average tenure and age of the HSBC Holdings board of directors in years:
- The average tenure for the HSBC Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors
Mark Tucker
Non-Executive Group Chairman of the Board
$2M
61
1.5 yrs
John Flint
Group Chief Executive
$5M
49
1.2 yrs
Jon Symonds
Deputy Group Chairman & Senior Independent Non-Executive Director
$654K
59
0.7 yrs
Menasey Moses
Group Chief Risk Officer
$4M
60
5.3 yrs
Ewen Stevenson
Group CFO & Executive Director
52
0.3 yrs
Andy Maguire
Chairman of Advisory Board
51
2.3 yrs
Digby Jones
Head of International Business Advisory Board
62
Pauline Françoise van der Meer Mohr
Independent Non-Executive Director
$256K
58
3.6 yrs
Jack Tai
Independent Non-Executive Director
$275K
68
2.6 yrs
Laura Cha
Independent Non-Executive Director
$268K
68
8.1 yrs
Who owns this company?
Recent Insider Trading
- HSBC Holdings insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (£) | Value (£) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 11. Apr 19 | Buy | Henri René Marie de la Croix de Castries | Individual | 08. Apr 19 | 08. Apr 19 | 460 | £6.32 | £2,907 | ||
| 20. Mar 19 | Sell | Menasey Moses | Individual | 19. Mar 19 | 19. Mar 19 | -146,649 | £6.25 | £-916,556 | ||
| 20. Mar 19 | Sell | Samir Assaf | Individual | 19. Mar 19 | 19. Mar 19 | -100,457 | £6.25 | £-627,856 | ||
| 28. Feb 19 | Buy | Jackson Tai | Individual | 26. Feb 19 | 26. Feb 19 | 10,440 | £6.15 | £64,241 | ||
| 21. Feb 19 | Sell | Samir Assaf | Individual | 20. Feb 19 | 20. Feb 19 | -60,356 | £6.48 | £-390,823 | ||
| 21. Feb 19 | Buy | Ewen Stevenson | Individual | 20. Feb 19 | 20. Feb 19 | 100,000 | £6.45 | £645,340 | ||
| 21. Jan 19 | Sell | May-Lung Cha | Individual | 23. Aug 18 | 23. Aug 18 | -8,000 | £6.92 | £-55,397 | ||
| 11. Jan 19 | Buy | John Flint | Individual | 21. Nov 18 | 21. Nov 18 | 4,853 | £6.45 | £31,286 | ||
| 10. Jan 19 | Buy | John Flint | Individual | 06. Jun 18 | 30. Aug 18 | 5,439 | £7.52 | £40,463 | ||
| 05. Dec 18 | Sell | Iain Mackay | Individual | 04. Dec 18 | 04. Dec 18 | -71,587 | £6.74 | £-482,496 | ||
| 02. Nov 18 | Buy | Pin An Trust | Company | 01. Nov 18 | 01. Nov 18 | 5,375,600 | £6.40 | £34,421,927 | ||
| 01. Oct 18 | Buy | Tung Shun Wong | Individual | 27. Sep 18 | 27. Sep 18 | 20,812 | £6.85 | £141,551 | ||
| 01. Oct 18 | Buy | Samir Assaf | Individual | 27. Sep 18 | 27. Sep 18 | 11,736 | £6.85 | £80,333 | ||
| 01. Oct 18 | Buy | Peter Boyles | Individual | 27. Sep 18 | 27. Sep 18 | 7,777 | £6.85 | £45,290 | ||
| 03. Oct 18 | Buy | Jonathan Symonds | Individual | 27. Sep 18 | 27. Sep 18 | 476 | £6.85 | £3,259 | ||
| 26. Sep 18 | Sell | Peter Boyles | Individual | 25. Sep 18 | 25. Sep 18 | -100,000 | £6.73 | £-673,000 | ||
| 17. Sep 18 | Sell | Iain Mackay | Individual | 14. Sep 18 | 14. Sep 18 | -24,021 | £6.57 | £-157,818 | ||
| 10. Aug 18 | Buy | Jackson Tai | Individual | 07. Aug 18 | 07. Aug 18 | 10,105 | £7.26 | £73,381 | ||
| 09. Jul 18 | Buy | Tung Shun Wong | Individual | 05. Jul 18 | 05. Jul 18 | 13,232 | £7.00 | £92,637 | ||
| 09. Jul 18 | Buy | Peter Boyles | Individual | 05. Jul 18 | 05. Jul 18 | 4,506 | £7.00 | £31,547 | ||
Management checks
We assess HSBC Holdings's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) HSBC Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
HSBA News
Simply Wall St News
Is HSBC Holdings plc (LON:HSBA) A Smart Pick For Income Investors?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, HSBC Holdings plc (LON:HSBA) has paid a dividend to shareholders. … Let's dig deeper into whether HSBC Holdings should have a place in your portfolio.
Simply Wall St - – Full articleShould You Be Worried About Insider Transactions At HSBC Holdings plc (LON:HSBA)?
So before you buy or sell HSBC Holdings plc (LON:HSBA), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at around the current price of UK£6.38
Simply Wall St - – Full articleUnderstated Factors To Consider Before Investing In HSBC Holdings plc (LON:HSBA)
As a large-cap stock with market capitalization of UK£132b, HSBC Holdings plc (LON:HSBA) falls into the category of a major bank. … As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like banks to vulnerabilities.
Simply Wall St - – Full articleHave You Considered These Key Risks For HSBC Holdings plc (LON:HSBA)?
As a UK£131b market capitalisation bank, HSBC Holdings plc (LON:HSBA) is well-positioned to benefit from the improving credit quality as a result of post-GFC recovery. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk HSBC Holdings takes on. … Since the level of risky assets held by a bank impacts its cash flow and therefore the attractiveness of its stock as an investment, I will take you through three metrics that are insightful proxies for risk.
Simply Wall St - – Full articleIs HSBC Holdings plc (LON:HSBA) A Smart Pick For Income Investors?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, HSBC Holdings plc (LON:HSBA) has paid a dividend to shareholders. … Let's take a look at HSBC Holdings in more detail.
Simply Wall St - – Full articleWhat Should We Expect From HSBC Holdings plc's (LON:HSBA) Earnings Over The Next Year?
Looking at HSBC Holdings plc's (LON:HSBA) earnings update in June 2018,. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of -23%
Simply Wall St - – Full articleHave Investors Priced In HSBC Holdings plc's (LON:HSBA) Growth?
HSBC Holdings plc (LON:HSBA) closed yesterday at £6.99, which left some investors asking whether the high earnings potential can still be justified at this price. … What can we expect from HSBC Holdings in the future. … Analysts are predicting good growth prospects for HSBC Holdings over the next couple of years
Simply Wall St - – Full articleDoes HSBC Holdings plc (LON:HSBA) Have A Place In Your Portfolio?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Over the past 10 years, HSBC Holdings plc (LON:HSBA) has returned an average of 5.00% per year to shareholders in terms of dividend yield. … Does HSBC Holdings tick all the boxes of a great dividend stock?
Simply Wall St - – Full articleCan These Factors Give You An Edge In HSBC Holdings plc (LON:HSBA)?
Post-GFC recovery has driven major financial institutions’ return to health, increasing market confidence in these “too-big-to-fail” banks. … As a large-cap stock with market capitalization of UK£141.43b, HSBC Holdings plc (LON:HSBA) falls into this category. … Today we’re going to take a look at these metrics to gain more confidence investing in the stock.
Simply Wall St - – Full articleHow Did HSBC Holdings plc's (LON:HSBA) 5.83% ROE Fare Against The Industry?
and want to better understand how you can grow your money by investing in HSBC Holdings plc (LON:HSBA). … With an ROE of 5.83%, HSBC Holdings plc (LON:HSBA) returned in-line to its own industry which delivered 7.99% over the past year. … I will take you through how metrics such as financial leverage impact ROE which may affect the overall sustainability of HSBA's returns.
Simply Wall St - – Full articleHSBA Company Info
Description
HSBC Holdings plc provides banking and financial products and services. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. The Retail Banking and Wealth Management segment offers personal banking products and services, mortgages and loans, credit cards, insurance and investment products, savings products, international services, and wealth solutions and financial planning services, as well as telephone, Internet, and mobile banking services. The Commercial Banking segment provides services and financing for buyers and suppliers in the trade cycle; liquidity and cash management services; capital financing, including debt, equity, and advisory services; and insurance and investment products, such as business and financial protection, trade insurance, employee benefits, corporate wealth management, and other commercial risk insurance products to small enterprises, mid-market companies, and multinationals. The Global Banking and Markets segment is involved in the provision of advisory, financing, prime, research and analysis, securities, trading and sales, and transaction banking services to corporates, financial institutions, and resources and energy groups. The Global Private Banking segment provides private banking, and investment and wealth management services to business owners, entrepreneurs, and senior executives and their families. As of January 14, 2019, the company operated approximately 3,800 offices in 66 countries and territories worldwide. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.
Details
| Name: | HSBC Holdings plc |
| HSBA | |
| Exchange: | LSE |
| Founded: | 1865 |
| £134,634,794,497 | |
| 20,200,269,242 | |
| Website: | http://www.hsbc.com |
| Address: |
HSBC Holdings plc 8 Canada Square, London, Greater London, E14 5HQ, United Kingdom |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| LSE | HSBA | Ordinary Shares USD 0.50 | London Stock Exchange | GB | GBP | 08. Apr 1991 | |
| OTCPK | HBCY.F | Ordinary Shares USD 0.50 | Pink Sheets LLC | US | USD | 08. Apr 1991 | |
| DB | HBC1 | Ordinary Shares USD 0.50 | Deutsche Boerse AG | DE | EUR | 08. Apr 1991 | |
| XTRA | HBC1 | Ordinary Shares USD 0.50 | XETRA Trading Platform | DE | EUR | 08. Apr 1991 | |
| SEHK | 5 | Ordinary Shares USD 0.50 | The Stock Exchange of Hong Kong Ltd. | HK | HKD | 08. Apr 1991 | |
| SHSC | 5 | Ordinary Shares USD 0.50 | Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect | HK | HKD | 08. Apr 1991 | |
| SZSC | 5 | Ordinary Shares USD 0.50 | The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect | HK | HKD | 08. Apr 1991 | |
| ENXTPA | HSB | Ordinary Shares USD 0.50 | Euronext Paris | FR | EUR | 08. Apr 1991 | |
| BER | HSBC.BH | Ordinary Shares USD 0.50 | The Bermuda Stock Exchange | BM | USD | 08. Apr 1991 | |
| BATS-CHIXE | HSBAL | Ordinary Shares USD 0.50 | BATS 'Chi-X Europe' | GB | GBP | 08. Apr 1991 | |
| BATS-CHIXE | HSBP | Ordinary Shares USD 0.50 | BATS 'Chi-X Europe' | GB | EUR | 08. Apr 1991 | |
| NYSE | HSBC | ADR EACH REPR 5 ORD USD0.50 | New York Stock Exchange | US | USD | 26. Apr 1991 | |
| NYSE | HSEA CL | SUB CAP 8.125% | New York Stock Exchange | US | USD | 03. Apr 2008 | |
| DB | HBC2 | ADR EACH REPR 5 ORD USD0.50 | Deutsche Boerse AG | DE | EUR | 26. Apr 1991 | |
| BMV | HBC N | ADR EACH REPR 5 ORD USD0.50 | Bolsa Mexicana de Valores | MX | MXN | 26. Apr 1991 |
Number of employees
Current staff
Industry
| Diversified Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 20:54 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/02/19 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
