HSBC stock has risen 11% in 2025, focusing on fee-based products, with revenue up 18%.

From Nasdaq: 2025-02-26 22:29:26

HSBC’s stock has risen by 11% in 2025, compared to Barclays’ 15% and JP Morgan’s 9%. The bank’s pre-tax profits for 2024 were $32.3 billion, with net interest income trending lower. HSBC is focusing on fee-based products in its Wealth and Personal Banking division, with revenue up 18% in 2024.

The stock has seen consistent returns over the past 4 years, but faces uncertainty in the current macroeconomic environment. HSBC’s valuation is reasonable, with plans to cut costs and improve efficiency. The bank is doubling down on capital returns and aiming for a mid-teens return on average tangible equity.

HSBC’s core net interest income remains under pressure, affecting overall revenue growth. Despite growth potential in the wealth division, it contributes only 11% to HSBC’s revenues. The bank aims to complete a $2 billion share repurchase plan by Q1 2025 and achieve a mid-teens return on average tangible equity between 2025-2027.



Read more at Nasdaq: What’s The Outlook Like For HSBC Stock?