London, Feb 10, 2026, 08:03 GMT — Regular session
- HSBC slipped roughly 0.5% in early London trading, backing away from its previous session’s finish near a 52-week high.
- Barclays’ results and updated targets threw a spotlight on UK banks’ earnings and capital returns.
- HSBC’s annual results land Feb. 25, and investors are watching rates and UK politics closely ahead of the release.
HSBC Holdings Plc dipped at the open in London, trading around 0.5% lower at 1,312.4 pence by 0804 GMT. Shares had closed Monday at 1,318.8 pence, just short of the 52-week high at 1,320.4 pence.
Investors sifted through Barclays’ latest annual results and updated targets, putting UK banks back in focus as earnings season heats up. The lender reported a 12% jump in annual profit and set its sights on a return-on-tangible-equity topping 14% by 2028. Barclays also outlined plans to hand back more than 15 billion pounds to shareholders between 2026 and 2028.
HSBC, Barclays and the rest are moving with every new headline on rates and the state of Britain’s politics. “Political pressure is building on Starmer to resign,” Jefferies economist Mohit Kumar noted Monday, flagging that a leadership shakeup could jolt both the pound and long-dated gilts. Reuters
UK markets looked shaky Monday: the pound slid, government bond yields jumped before pulling back, all following a string of headlines swirling around Prime Minister Keir Starmer and top officials. “I’m not really sure if you change the skipper on the Titanic, the outcome’s going to change too much,” Lloyds FX strategist Nick Kennedy told Reuters. Rabobank’s Benjamin Picton flagged “diabolically bad poll results”—heightening perceptions that Starmer’s “days are numbered.” Reuters
HSBC closed out Monday at 1,318.8 pence, up 1.0% after dipping to roughly 1,293.4 pence earlier in the day, price data show.
Nothing much from the bank itself so far this morning, but traders are already eyeing the next big event: HSBC drops its 2025 Annual Results on Feb. 25, and there’s an investor and analyst call set for that morning, London time.
Late Monday, a regulatory filing revealed HSBC Holdings plc, acting through its subsidiaries, bumped its stake in International Personal Finance to 10.060% as of Feb. 5. That’s up from 9.712%, with the total including a minor slice held through a cash-settled equity swap.
UK lenders are still facing the same core issue. Profits have benefited from what’s been called a “benign” rate backdrop, but if rates start dropping sooner than anticipated, it’s net interest margin that takes the hit—the gap between what banks make from loans and shell out on deposits. That could help borrowers later, but it’s a pinch for the banks right now.
Barclays is ratcheting up its targets and pouring more into tech, turning up the pressure on rivals when it comes to outlays and shareholder rewards. HSBC’s shares, meanwhile, have acted as though investors are counting on steady capital returns—any sign of flagging payouts, and it’s reflected in the stock almost instantly.
But that dynamic is a double-edged sword. Sterling and gilts are once again reacting to the political backdrop in the UK, while banks face shakier valuations if funding costs spike on volatility—or if a softer economy compels them to set aside more for bad loans.
