LONDON, April 25, 2026, 16:03 BST
- HSBC plans to redeem a pair of 2027 note series in June and will also scrap their London listings.
- The timing comes just ahead of HSBC’s first-quarter results set for May 5—a report that will spotlight capital, rates, and buybacks.
- UK bank earnings from Barclays and Standard Chartered are on investors’ radar, with margin trends and loan loss figures in sharp focus.
HSBC Holdings Plc plans to redeem HK$1.5 billion in 1.55% notes and €2 billion of fixed-to-floating-rate notes maturing in 2027 this June, according to a filing. Both securities are set to see their London listings canceled after the buybacks. The move lands just under two weeks before HSBC’s first-quarter results come out.
The date stands out. HSBC will post its first-quarter 2026 results on May 5, 5 a.m. BST, followed by an investor and analyst call that same day. That’s when investors get their first unclouded read on funding costs, capital rebuilding efforts, and where dividends are headed.
The redemption taps an issuer call option—the borrower’s right to repay early as spelled out in the bond’s terms. Banks typically do this for balance-sheet reasons. But with capital ratios and buyback plans already facing a microscope, the move lands with added significance.
HSBC is set to redeem its Hong Kong dollar notes on June 3, paying out HK$1 million per calculation amount along with any accrued interest. For the euro notes, redemption lands on June 15 at €1,000 per calculation amount plus accrued interest. Trading and listing for these notes will be scrapped on or soon after June 4 for the Hong Kong notes, and June 16 for the euro notes.
The filing didn’t specify why the call was made. HSBC Holdings, based in London, reported $3.233 trillion in assets as of Dec. 31 and operates across 56 countries and territories.
The next earnings release faces a more robust 2025 operating environment, but with a more complicated capital picture. Back in February, HSBC reported 2025 pretax profit dropping $2.4 billion, landing at $29.9 billion. Revenue, on the other hand, climbed 4% to $68.3 billion.
Chief Executive Georges Elhedery dubbed 2025 a period for “decisive action and swift execution,” emphasizing HSBC’s push to become a “simple, more agile, focused bank.” For 2026 through 2028, the bank is aiming for a return on tangible equity of at least 17%—a measure of profit relative to shareholder capital, excluding intangible assets. HSBC
HSBC is projecting banking net interest income to hit at least $45 billion in 2026. That figure represents what the bank pulls in from loans and securities once funding costs are subtracted. As for credit impairment charges—basically, provisions set aside for potential loan losses—HSBC is targeting roughly 40 basis points of average gross loans.
Capital questions linger for HSBC following its January move to fully privatise Hang Seng Bank, turning it into a wholly owned unit. The bank flagged a 110-basis-point hit to its Common Equity Tier 1 ratio from the deal—the key regulatory capital gauge. Buybacks are on hold until that ratio climbs back to at least the 14% to 14.5% target band, HSBC said.
Barclays kicks off the UK bank earnings season on April 28, with Standard Chartered — which leans heavily on Asia — slated to report April 30. HSBC isn’t due until May 5. For lenders, the first quarter is a shot to “back up analysts’ forecasts,” says Russ Mould, investment director at AJ Bell. AJ Bell
The risks are clear. If Hong Kong interbank rates drop, that’s likely to hit net interest income at HSBC and Standard Chartered. Higher loan-loss provisions or worsening sentiment on global trade would also complicate any quick HSBC buyback restart. Mould flagged that “any jump in sour loan provisions” could take the shine off bank shares. AJ Bell
At this stage, the note call is just a specific debt-market move, not an overhaul of strategy. The real scrutiny lands in May. Investors want proof HSBC can stick to its income goal, shore up capital following Hang Seng, and keep expenses in check—all without sacrificing growth.
