HSBCCAUTIOUS

HSBC Return on Equity (ROE) Analysis

13.1%

Updated 203h ago·SEC filings & market data

Key Takeaway

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

Sector Performance

49th percentile

HSBC

13.1%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

11.6%(Jul 2026)

↑ Improving

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Deep Analysis

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

This sits just below the sector median of 13.8%, placing HSBC at the 48th percentile among peers—essentially mid-pack. The year-over-year change is not available, and the quarter-over-quarter change is +12.9%, showing a recent improvement. However, because the eight-quarter trend direction is also unavailable, the positive quarterly move cannot be confirmed as a lasting shift. The combination of a near-median ROE and an unverified upward quarter leaves limited evidence of a competitive edge. This metric neither strongly contradicts nor reinforces the overall CAUTIOUS verdict, but the lack of a clear trend and the slight underperformance versus the median supports caution.

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.

Who are HSBC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.