HSBC Holdings: Personal Banking Segment May Impact Revenues

Jia Ming Eow
100 Followers

Summary

  • Share repurchases and dividends remain central to the investment thesis, supporting shareholder returns and signaling management confidence.
  • The recent surge in the stock price prompts caution, driven by share buybacks, creates doubts over growth in newly reallocated net fee income and stability in its net interest income.
  • Key risks include macroeconomic headwinds and sector-specific challenges such as falling interest rates and neobanks adoption.

HSBC Building, London

William Barton

HSBC Holdings (NYSE:HSBC) is one of the most well-known traditional banks across the world, situated across the UK, US, Asia, Middle East and many more. It has had an amazing YTD and 1Y return at ~22% and ~38%, respectively, boosted by optimism around HSBC's restructuring and cost-cutting. However, with

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