FY2026 Earnings Forecast for HSBC Issued By Erste Group Bank

Key Points

• Erste Group Bank lowered its FY2026 EPS forecast for HSBC to $8.45 from $8.50, below the $8.66 consensus estimate, while maintaining a “Hold” rating. Overall analyst sentiment remains cautious, with HSBC carrying an average “Hold” rating.
• HSBC’s shares opened at $103.69, near their 52-week high of $104.33, with a market capitalization of approximately $356.3 billion. The bank reported $0.44 quarterly EPS, a 1.9% dividend yield and a 32.46% payout ratio.
• HSBC continues to simplify and invest in Asia: it agreed to sell its Singapore insurance business for $2.09 billion, is reportedly expanding its Indian deposit base, and plans to hire AI specialists and wealth managers in Singapore. These initiatives could support capital returns and growth, though aggressive deposit pricing may pressure margins.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Erste Group Bank dropped their FY2026 earnings per share estimates for HSBC in a research report issued to clients and investors on Monday, July 27th. Erste Group Bank analyst S. Lingnau now anticipates that the financial services provider will post earnings of $8.45 per share for the year, down from their previous estimate of $8.50. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for HSBC's current full-year earnings is $8.66 per share.

A number of other analysts also recently issued reports on HSBC. Weiss Ratings downgraded shares of HSBC from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 6th. Royal Bank Of Canada reissued a "sector perform" rating on shares of HSBC in a research report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of HSBC in a report on Tuesday, June 23rd. Zacks Research downgraded HSBC from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 5th. Finally, Citigroup reiterated a "buy" rating on shares of HSBC in a research note on Thursday, July 16th. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, HSBC has an average rating of "Hold".

HSBC Price Performance

Shares of NYSE:HSBC opened at $103.69 on Wednesday. The company has a market capitalization of $356.34 billion, a P/E ratio of 17.00, a price-to-earnings-growth ratio of 0.92 and a beta of 0.57. The company's 50-day moving average is $95.81 and its 200 day moving average is $89.80. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.92 and a current ratio of 0.92. HSBC has a fifty-two week low of $60.61 and a fifty-two week high of $104.33.

HSBC (NYSE:HSBC - Get Free Report) last announced its earnings results on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter. The firm had revenue of $19.12 billion during the quarter. HSBC had a return on equity of 13.35% and a net margin of 16.06%.

HSBC Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, May 15th were issued a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $2.00 dividend on an annualized basis and a yield of 1.9%. HSBC's payout ratio is presently 32.46%.

Insider Activity

In other news, insider Daniel Scott Palomaki sold 23,123 shares of the firm's stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $18.11, for a total value of $418,757.53. Following the completion of the transaction, the insider directly owned 4,973 shares of the company's stock, valued at $90,061.03. This trade represents a 82.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.01% of the stock is currently owned by corporate insiders.

Institutional Trading of HSBC

Institutional investors have recently added to or reduced their stakes in the stock. Transamerica Financial Advisors LLC grew its holdings in HSBC by 287.1% during the 4th quarter. Transamerica Financial Advisors LLC now owns 329 shares of the financial services provider's stock valued at $26,000 after buying an additional 244 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new position in shares of HSBC in the third quarter valued at approximately $26,000. Binnacle Investments Inc grew its stake in HSBC by 80.5% during the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 198 shares in the last quarter. Ballast Advisors LLC purchased a new position in HSBC during the first quarter valued at approximately $36,000. Finally, Western Wealth Management LLC purchased a new stake in HSBC in the 1st quarter worth approximately $37,000. Hedge funds and other institutional investors own 1.48% of the company's stock.

More HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Singapore insurance sale strengthens simplification strategy: HSBC agreed to sell its Singapore insurance business to Allianz for $2.09 billion while retaining access to insurance distribution through a 15-year partnership. The transaction should release capital and simplify the group, with proceeds potentially supporting shareholder returns or reinvestment. HSBC to Divest Singapore Insurance Unit to Allianz for $2.09B
• Positive Sentiment: India deposit campaign expands funding: HSBC reportedly attracted about $5.5 billion in Indian nonresident foreign-currency deposits using unusually aggressive leverage and pricing. The win increases HSBC’s deposit base and strengthens its position in a high-growth market, though the economics depend on whether the deposits generate sufficient returns. HSBC uses leverage to win US$5.5 billion in India forex deposits
• Positive Sentiment: Investment in AI and wealth management: HSBC plans to hire more than 100 AI specialists and 100 wealth managers in Singapore. The expansion supports automation, productivity and growth in higher-margin wealth services, reinforcing Asia as a core growth region. HSBC to hire 100 AI specialists and 100 wealth managers
• Positive Sentiment: Shareholder-return appeal: HSBC was highlighted among stocks with strong shareholder yields from dividends, buybacks and debt reduction, which may support investor demand amid market uncertainty. 4 High Shareholder Yield Stocks to Buy Amid Rising Uncertainty
• Neutral Sentiment: Australian loan-book sale: HSBC is reportedly close to selling a more-than-$30 billion Australian loan portfolio to Blackstone’s credit arm. The deal could reduce balance-sheet complexity and risk, but also remove lending income and remains subject to completion. Blackstone credit arm nears deal for HSBC’s Australian loan book
• Negative Sentiment: Deposit-growth costs and execution risk: Winning India’s deposits through high leverage or aggressive pricing could pressure margins and increase balance-sheet risk if funding costs rise or customer balances prove less stable than expected. How HSBC’s 19x NRI deposit bet pulled in $5.5 billion

About HSBC

HSBC Holdings plc NYSE: HSBC is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world's largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.

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