HSBC Holdings (LSE:HSBA) has been active in its funding stack, redeeming higher coupon US$2.25b senior notes while issuing new fixed to floating securities. For shareholders, the key question is how this reshapes interest costs and capital flexibility.
These funding moves come after a run of frequent announcements from HSBC Holdings, from Q3 2026 earnings and dividend confirmations in late October to multiple fixed income offerings across the US dollar market. The share price has eased about 7.3% over the past month and around 14.7% over 90 days, while the year-to-date share price return of 9.5% and a 1-year total shareholder return of 27.2% reflect momentum over a longer horizon, with total shareholder return over 3 and 5 years described as extremely strong in absolute terms.
Scan how HSBC Holdings compares on balance sheet strength and funding resilience with a curated list of solid balance sheet and fundamentals (9 results) tailored for investors watching capital structure moves like these.
HSBC Holdings has reshaped its funding mix while the share price has pulled back, leaving a clear gap between the market level and published fair value estimates. Where does a reasonable fair value range actually land now?
Most Popular Narrative: 14% Undervalued
On the narrative view, HSBC Holdings screens as undervalued, with a fair value of £15.15 against a last close of £13.05, which leaves a sizeable gap for investors to judge.
Strong capital generation, a CET1 ratio around the 14% target range, a 40 to 50 basis point CET1 uplift expected from Basel 3.1 and resumed share buybacks together point to scope for continued capital returns alongside reinvestment. This can support per share earnings and distributions.
See why 172 investors see HSBC Holdings as 14% undervalued .
Result: Fair Value of £15.15 (UNDERVALUED)
Still, deposit competition in Hong Kong and the UK and the planned US$2.2b revenue removal from 15 exits could both challenge the HSBC Holdings undervaluation story.
Find out about the key risks to this HSBC Holdings narrative .
Next Steps
If the HSBC Holdings story so far feels mixed, that is the point. There are both pressure points and bright spots in view. Move quickly, review the full picture, and weigh the 3 key rewards and 2 important warning signs
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This article is general in nature and was produced with the assistance of AI automation, based on data and analysis from Simply Wall St. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include HSBA.L .
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