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HSBC Holdings

LSE:HSBA
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HSBA
LSE
£135B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

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
1.6%
LSE:HSBA
1%
GB Banks
0.6%
GB Market
1 Year Returns
-5.8%
LSE:HSBA
-8.7%
GB Banks
1.1%
GB Market
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.
Price Volatility
HSBA
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HSBC Holdings.

LSE:HSBA Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for LSE:HSBA
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.

LSE:HSBA Value of Excess Returns
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
LSE:HSBA Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
LSE:HSBA PE (Price to Earnings) Ratio Data Sources
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.

LSE:HSBA PE (Price to Earnings) Ratio Calculation
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?
Raw Data
LSE:HSBA PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

LSE:HSBA PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
LSE:HSBA PB (Price to Book) Ratio Data Sources
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
LSE:HSBA PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess HSBC Holdings's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. 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

 How is HSBC Holdings expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

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!
Annual Growth Rate
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HSBC Holdings expected to grow at an attractive rate?
  • 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
Raw Data
LSE:HSBA Future Growth Rates Data Sources
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
Raw Data
LSE:HSBA Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:HSBA Future Estimates Data
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
LSE:HSBA Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • HSBC Holdings's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • HSBC Holdings's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:HSBA 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.

LSE:HSBA Future Estimates Data
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
LSE:HSBA Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HSBC Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HSBC Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. 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)
  3. 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)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare HSBC Holdings's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
HSBC Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HSBC Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HSBA Past Revenue, Cash Flow and Net Income Data
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.
X
Past performance checks
We assess HSBC Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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

 How is HSBC Holdings's financial position? (This company is analysed differently as a bank or financial institution)

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.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of HSBC Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
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.
Raw Data

All data from HSBC Holdings Company Filings, last reported 3 months ago.

LSE:HSBA Past Debt and Equity Data
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.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • 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%).
X
Financial health checks
We assess HSBC Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HSBC Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
5.89%
Current annual income from HSBC Holdings dividends. Estimated to be 5.94% next year.
If you bought £2,000 of HSBC Holdings shares you are expected to receive £118 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
LSE:HSBA Annualized Past and Future Dividends
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.

LSE:HSBA Future Dividends Estimate Data
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
LSE:HSBA Past Annualized Dividends Data
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess HSBC Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of HSBC Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Flint
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:

3.7
Average Tenure
54
Average Age
  • The tenure for the HSBC Holdings management team is about average.
Management Team

John Flint

TITLE
Group Chief Executive
COMPENSATION
$5M
AGE
49
TENURE
1.2 yrs

Menasey Moses

TITLE
Group Chief Risk Officer
COMPENSATION
$4M
AGE
60
TENURE
8.3 yrs

Ewen Stevenson

TITLE
Group CFO & Executive Director
AGE
52
TENURE
0.3 yrs

Peter Wong

TITLE
Member of the Group Management Board
AGE
67

Samir Assaf

TITLE
CEO of Global Banking & Markets Business and Member of the Group Management Board
AGE
58

Pat Burke

TITLE
Member of the Group Management Board & Group Managing Director
AGE
56
TENURE
3.7 yrs

António P. Simões

TITLE
Chief Executive of Global Private Banking & Member of Group Management Board
AGE
43

Stuart Levey

TITLE
Chief Legal Officer & Member of the Group Management Board
AGE
54
TENURE
7.3 yrs

Manveen Kaur

TITLE
Head of Wholesale Market & Credit Risk
AGE
54
TENURE
6 yrs

Andy Maguire

TITLE
Chairman of Advisory Board
AGE
51
TENURE
3.7 yrs
Board of Directors Tenure

Average tenure and age of the HSBC Holdings board of directors in years:

2.3
Average Tenure
59.5
Average Age
  • 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

TITLE
Non-Executive Group Chairman of the Board
COMPENSATION
$2M
AGE
61
TENURE
1.5 yrs

John Flint

TITLE
Group Chief Executive
COMPENSATION
$5M
AGE
49
TENURE
1.2 yrs

Jon Symonds

TITLE
Deputy Group Chairman & Senior Independent Non-Executive Director
COMPENSATION
$654K
AGE
59
TENURE
0.7 yrs

Menasey Moses

TITLE
Group Chief Risk Officer
COMPENSATION
$4M
AGE
60
TENURE
5.3 yrs

Ewen Stevenson

TITLE
Group CFO & Executive Director
AGE
52
TENURE
0.3 yrs

Andy Maguire

TITLE
Chairman of Advisory Board
AGE
51
TENURE
2.3 yrs

Digby Jones

TITLE
Head of International Business Advisory Board
AGE
62

Pauline Françoise van der Meer Mohr

TITLE
Independent Non-Executive Director
COMPENSATION
$256K
AGE
58
TENURE
3.6 yrs

Jack Tai

TITLE
Independent Non-Executive Director
COMPENSATION
$275K
AGE
68
TENURE
2.6 yrs

Laura Cha

TITLE
Independent Non-Executive Director
COMPENSATION
$268K
AGE
68
TENURE
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
X
Management checks
We assess HSBC Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Should 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 -

Understated 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 -

Have 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 -

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 take a look at HSBC Holdings in more detail.

Simply Wall St -

What 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 -

Have 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 -

Does 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 -

Can 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 -

How 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 -

HSBA 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
Staff numbers
235,217
HSBC Holdings employees.
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.