HSBC Holdings plc - ADR
HSBC
Market Cap$199.48B
Close$
Earnings Call Q4 2024
February 21, 2025 - AI Summary
Strong Financial Performance: HSBC reported a record profit before tax of $32.3 billion for the full year 2024, with a return on tangible equity (RoTE) of 14.6%, achieving their mid-teens target. Excluding notable items, profit was $34.1 billion, and distributions to shareholders totaled $26.9 billion, including $11 billion in share buybacks and a $0.87 per share dividend.
Cost Optimization and Reallocation: The bank plans to achieve around $1.5 billion in annualized savings by the end of 2025 through organizational simplification, which represents an approximately 8% reduction in global staffing costs. The restructuring will incur $1.8 billion in severance and upfront costs but these savings will have no meaningful impact on revenue.
Focus on Growth Markets: HSBC is reallocating resources from non-strategic segments to high-potential areas such as Wealth in Asia and the Middle East, along with Corporate and Institutional Banking (CIB). They aim to grow fee income in Wealth and expect Banking Net Interest Income (NII) to reach around $42 billion in 2025.
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$90.90
55.8% upside
Current Fair Value
55.8% upsideUndervalued by 55.8% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $199.48 Billion |
|---|---|
| Enterprise Value | $-55,183,360,000.00 |
| Dividend Yield | $3.28 (0.0510341497880358%) |
| Earnings per Share | $6.25 |
| Beta | 0.46 |
| Outstanding Shares | 3,553,800,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 9.69 |
|---|---|
| PEG | -31.46 |
| Price to Sales | 1.82 |
| Price to Book Ratio | 1.06 |
| Enterprise Value to Revenue | -0.48 |
| Enterprise Value to EBIT | -7.03 |
| Enterprise Value to Net Income | -3 |
| Total Debt to Enterprise | 0 |
| Debt to Equity | 0 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About HSBC Holdings Plc
CEO: Noel Paul Quinn HSBC Holdings Plc engages in the provision of banking and financial services. It operates through the following business segments: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, Global Private Banki...