HSBC HoldingsLSE:HSBA -1.13%60 ROE % is 14.90% as of Mar. 2026, which is 104% above its 10-year median of 7.30. GuruFocus rates LSE:HSBA with a GF Score™ of 60/100 and a GF Value™ of £8.30 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,523 Banks companies, HSBC Holdings ranks better than 59.09% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. HSBC Holdings's annualized net income for the quarter that ended in Mar. 2026 was £22,035 Mil. HSBC Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was £147,844 Mil. Therefore, HSBC Holdings's annualized ROE % for the quarter that ended in Mar. 2026 was 14.90%.
The historical rank and industry rank for HSBC Holdings's ROE % or its related term are showing as below:
LSE:HSBA'
s ROE % Range Over the Past 10 Years
Min: 1.49 Med: 7.3 Max: 12.96
Current: 11.42
During the past 13 years, HSBC Holdings's highest ROE % was 12.96%. The lowest was 1.49%. And the median was 7.30%.
LSE:HSBA's ROE % is ranked better than 59.09% of 1523
companies
in the Banks industry
Industry Median: 10.22
vs LSE:HSBA: 11.42
HSBC Holdings (LSE:HSBA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
HSBC Holdings ROE % Related Terms
HSBC Holdings ROE % Historical Data
* Premium members only.
The historical data trend for HSBC Holdings's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Diversified subindustry, HSBC Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HSBC Holdings ROE % vs Banks Industry
For the Banks industry and Financial Services sector, HSBC Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where HSBC Holdings's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
HSBC Holdings (LSE:HSBA) has a ROE % of 14.90% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HSBC Holdings and its competitors. This is 104% above median its historical median of 7.30. Over the past decade, HSBC Holdings' ROE % has ranged from 1.49 to 12.96. According to the industry distribution chart, HSBC Holdings ranks #623 out of 1523 companies in the Banks industry, placing it in the top 40.9%.
Is HSBC Holdings' ROE % too high?
HSBC Holdings' current ROE % of 14.90% is 104% above median its 10-year median of 7.30. Over the past 10 years, this metric has ranged from a low of 1.49 to a high of 12.96. The Banks industry median ROE % is 10.22. HSBC Holdings' value of 14.90% is 45.8% above this industry median. Based on the distribution chart, HSBC Holdings ranks #623 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, HSBC Holdings has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HSBC Holdings' ROE % compare to JPM and BAC?
According to the Banks industry distribution chart, HSBC Holdings ranks #623 out of 1523 companies for ROE %. This puts HSBC Holdings in the upper half of its industry. The industry median ROE % is 10.22. HSBC Holdings' value of 14.90% is 45.8% above this benchmark. Historically, HSBC Holdings' own ROE % has ranged from 1.49 to 12.96 over the past decade. While the company's 10-year median is 7.30 vs. the industry median of 10.22, HSBC Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HSBC Holdings's current ROE % of 14.90% is 45.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HSBC Holdings and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HSBC Holdings's current ROE % is 14.90%, which is 104% above median its own 10-year median of 7.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HSBC Holdings stock overvalued right now?
Based on GuruFocus' analysis, HSBC Holdings (LSE:HSBA) is currently considered Significantly Overvalued. The stock's GF Value™ is £8.30, compared to a current price of £14.29 — trading 72.2% above its estimated fair value. The current ROE % is 14.90%, which is 104% above median its 10-year median of 7.30 and 45.8% above the Banks industry median of 10.22. HSBC Holdings' overall GF Score™ is 60/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For HSBC Holdings (LSE:HSBA), the current ROE % is 14.90% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HSBC Holdings (LSE:HSBA) Overvalued in 2026?
Based on GuruFocus' analysis, HSBC Holdings stock appears to be overvalued.
The current stock price of £14.29 is trading 72.2% above its estimated GF Value™ of £8.30.
GuruFocus considers HSBC Holdings to be Significantly Overvalued.
Key valuation signals for LSE:HSBA:
ROE %: 14.90% (104% above median its 10-year median of 7.30)
GF Value™: £8.30 vs. price of £14.29 (72.2% above fair value)
Industry Position: 45.8% above the Banks median (#623 of 1523)
No single metric tells the full story. See the LSE:HSBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and over 40 million customers worldwide. It operates in more than 50 countries with over 200,000 full-time staff. Hong Kong and the United Kingdom are its two largest markets. The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.
60GF Score
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