HSBC Earnings Prediction
The chart below shows how HSBC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HSBC sees a -4.34% change in stock price 10 days leading up to the earnings, and a +1.88% change 10 days following the report. On the earnings day itself, the stock moves by +0.34%. This data can give you a slight idea of what to expect for the next quarter's release.
HSBC Key Earning Data
HSBC Earnings Analysis
Positive
Earnings Per Share Beat: HSBC Holdings plc reported an EPS of $1.95, exceeding expectations of $1.6.
Profit Before Tax Increase: Profit before tax increased by 11%, with an annualized return on tangible equity of 18.4%, excluding notable items.
Asset Growth and Customer Acquisition: The company attracted $22 billion in net new invested assets and gained 300,000 new-to-bank customers in Hong Kong.
Transaction Banking Performance: Transaction Banking showed strong performance, particularly in FX, benefiting from higher client activity due to increased volatility.
Cost Management Strategy: HSBC is on track to deliver cost actions set out in February, with a disciplined approach to investments and capital allocation.
Strong Balance Sheet Stability: The bank's balance sheet is strong, with deposit surpluses in every major currency and geography, providing a steady income stream.
Share Buyback and Dividend: The company announced a share buyback of up to $3 billion and a $0.10 per share interim dividend, reflecting a focus on capital return to investors.
Revenue Increase Analysis: Revenue of $17.7 billion was up $1.1 billion year-on-year, driven by fee and other income, with a notable increase in debt and equity markets.
Wholesale Banking Revenue Growth: Wholesale transaction banking revenue increased by 13% year-on-year, driven by strong FX performance.
Wealth Management Growth: Wealth management achieved its fifth consecutive quarter of double-digit growth, with significant client activity in Asia.
Negative
Macroeconomic Environment Challenges: The external macroeconomic environment is less favorable and more uncertain than it was in February, which could dampen business confidence and constrain investment.
Tariff Impact on Revenues: In a plausible downside tariff scenario, the company estimates a low single-digit percentage impact on the group’s revenues due to potential increases in tariffs.
Global Trade Slowdown Impact: The consensus downside scenario models a slowdown in global trade and GDP growth, resulting in incremental expected credit losses (ECLs) of $0.5 billion.
Retained Loan Portfolio Loss: The reclassification of the retained French home loan portfolio led to a $1.3 billion pretax loss, impacting the capital position by around 0.2 percentage points of CET1.
Accounting Impact Dilution Loss: The company expects to recognize an accounting impact dilution loss of between $1.2 billion and $1.6 billion on its stake in BoCom, which will be treated as a material notable item.
HSBC FAQs
How does HSBC typically perform around its earnings report dates?
HSBC's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -4.34% change leading up to the report and a +1.88% change in the 10 days following the release.
Is HSBC Holdings PLC (HSBC) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
HSBC Earning Call Sentiment
HSBC Holdings plc (NYSE:HSBC) Q1 2025 Earnings Call Transcript
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