London, Feb 15, 2026, 11:37 GMT — Market closed.
- HSBC shares ended Friday lower, lagging a steadier broader market tone.
- European banks logged their sharpest weekly drop in more than 10 months.
- Investors now pivot to HSBC’s annual results later this month.
HSBC Holdings Plc (HSBA.L) shares last closed at 1,238.6 pence, down 2.2%, after a volatile week for bank stocks. (HSBC)
The slide matters because it comes just ahead of a busy stretch for the sector, with investors trying to pin down how quickly rate cuts might arrive — and what that does to bank earnings. HSBC’s results are a near-term test of whether the recent run in European lenders can hold.
European bank shares had their worst week in more than 10 months, with the regional banking sub-index down 5.4% as investors weighed fresh AI-driven volatility. U.S. inflation data for January came in softer than expected, pushing traders to lift bets on a Federal Reserve cut by June. “The narrative here is about AI overinvestment, valuations and disruption,” said Kyle Rodda, a senior financial market analyst at Capital.com. (Reuters)
In London, the FTSE 100 rose 0.4% on Friday even as banks struggled for traction. Britain’s economy grew 0.1% in the fourth quarter, and money markets were pricing a 63.4% chance of a 25-basis-point Bank of England cut in March — that’s 0.25 percentage points. BoE chief economist Huw Pill has warned underlying inflation is still running near 2.5%. (Reuters)
For HSBC, the rate debate is not just background noise. Lower rates can squeeze net interest income — the money banks make on the gap between what they earn on loans and what they pay on deposits.
Investors will also be looking for the familiar signals on shareholder returns. Buybacks and dividends can matter as much as the earnings line when the market is trying to decide whether a pullback is a pause or something messier.
But there is a downside case. If rate-cut expectations accelerate and bond yields fall further, the sector can lose support quickly, and a cautious tone on margins can weigh on even the best-capitalised names.
When London reopens on Monday, traders will be watching whether bank shares stabilise after the week’s drop and whether rate-cut pricing keeps firming. A shift in bond yields — up or down — can move the group in a hurry.
HSBC said it will announce its Annual Results 2025 on Feb. 25, with the release scheduled for 4 a.m. GMT. That report, and any message on dividends and capital returns, is the next clear catalyst for the stock. (HSBC)
