London, Jan 31, 2026, 07:51 GMT — The market has closed.
- HSBC edged up 1.2% on Friday, just shy of a new peak.
- Shares in UK banks drove the FTSE 100 higher at month’s end, boosted by a softer pound.
- Attention turns to HSBC’s annual results on Feb. 25 and whether it will raise its profit targets.
HSBC Holdings Plc shares closed Friday up 1.21% at 1,285.40 pence, hovering near their recent highs ahead of a hectic earnings season for UK banks. (Sharecast)
This shift carried weight as HSBC stands as a major force in the FTSE 100 and a key indicator for UK banks, which have been behind the index’s rise despite instability in commodity-linked stocks. (Reuters)
The rally now hinges on a straightforward question: can management protect margins and raise guidance once more amid markets adjusting to shifting rates and growth forecasts, while politicians continue pushing for faster credit flow?
Bank investors are sticking to one key belief: profitability targets can still climb after an extended period of rising rates and stable credit conditions. “UK banks have benefited from earnings resilience lasting longer than initially expected,” Peter Rothwell, head of banking at KPMG UK, told Reuters earlier this week. (Reuters)
Not everyone is taking the next steps lightly. “There is a quid pro quo… an expectation that they grow their loan books faster and provide more support to the economy,” said Gary Greenwood, analyst at Shore Capital, cautioning this could lead to tighter margins on lending. (Reuters)
HSBC’s rally reflects a wider uptick among major European banks, yet the stock has carved out its own pace. Shares hit a record high earlier this week, briefly pushing HSBC’s market cap past the $300 billion mark, Reuters reported. (Reuters)
At times, peers have tracked each other closely. Barclays, Lloyds, and NatWest have been grouped in London as one trade: long on banks, short on miners, especially when the pound weakens and investors seek earnings clarity.
HSBC has more to show than just a chart. Traders want specifics on costs, how the bank plans to return capital, and whether there will be any shift in its profitability metric, return on tangible equity — which gauges profit against shareholders’ tangible book value.
The downside is more straightforward: weaker loan growth, fiercer deposit competition, or a policy move that tightens spreads right when investors are chasing “mid-teens” returns.
With the market closed over the weekend, focus shifts to key upcoming dates. HSBC’s financial calendar shows its Annual Results for 2025 set for Feb. 25. (Hsbc)
