• HSBC Holdings PLC (NYSE:HSBC) reported earnings per share of $1.65, beating estimates and achieving a revenue of $16.9 billion.
• The bank experienced a 29% decrease in second-quarter profits, primarily due to a significant impairment charge related to its investment in BoCom and the Hong Kong real estate market.
• Despite challenges, HSBC announced a $3 billion share buyback and a $0.10 quarterly dividend, signaling confidence in its financial health and commitment to shareholder value.

HSBC Holdings PLC (NYSE:HSBC), a leading global banking and financial services organization, has recently outperformed earnings expectations. On July 30, 2025, the bank reported an earnings per share of $1.65, surpassing the estimated $1.62, and achieved a revenue of $16.9 billion, exceeding the anticipated $16.7 billion. HSBC operates in various segments, including retail banking, wealth management, and commercial banking, competing with other major banks like JPMorgan Chase and Citigroup.

Despite these positive earnings, HSBC's share price experienced a decline of over 4% due to a 29% decrease in second-quarter profits. The bank's profit before tax was $6.3 billion, a $2.6 billion reduction from the previous year. This decline was mainly attributed to a $2.14 billion impairment charge related to its investment in the Chinese 'associate' Bank of Communications (BoCom) and exposure to the Hong Kong real estate market.

The impairment charge led to expected credit losses increasing by $900 million to $1.9 billion. Despite these challenges, HSBC announced a $3 billion share buyback and a $0.10 quarterly dividend. The new share buyback initiative doubles the amount launched since the beginning of the year, reflecting the bank's commitment to returning value to shareholders.

HSBC's stock was trading at $97.50, slightly below its year-to-date high of $102. The bank has a price-to-earnings (P/E) ratio of approximately 11.16, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 1.39, suggesting that investors are paying $1.39 for every dollar of sales. The earnings yield is approximately 8.96%, reflecting the earnings generated from each dollar invested in the company's stock.

Additionally, HSBC's enterprise value to sales ratio is negative, at around -0.17, which may indicate that the company's enterprise value is less than its sales. CEO Georges Elhedery expressed optimism, stating that the bank is making positive strides towards becoming a simpler, more agile, and focused organization, leveraging its core strengths.