HSBCCAUTIOUS

HSBC Return on Equity (ROE) Analysis

13.1%

Updated 830h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; HSBC’s current 13.1% means it earns $13.10 for every $100 of equity.

Sector Performance

50th percentile

HSBC

13.1%

Sector Median

13.2%

Sector Avg

16.4%

Prior Period

11.6%(Jul 2026)

↑ Improving
📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; HSBC’s current 13.1% means it earns $13.10 for every $100 of equity.

That sits just below the sector median of 13.2%, placing the bank at the 50th percentile among peers — essentially average. The only available historical comparison shows an increase from 11.6% to 13.1%, a quarter-over-quarter rise of +12.9%, though no year-over-year or longer trend data exists. The combination of an average absolute level and a single sharp sequential improvement suggests momentum without evidence of a sustained competitive edge. For an investor

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HSBC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

Advertisement

Master HSBC's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full HSBC research report →

Free account — no credit card

HSBC

13.1%

Sector Median

13.2%

Sector Avg

16.4%

How HSBC's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.