LONDON, March 21, 2026, 15:10 GMT
HSBC Holdings slipped 2.34% to finish at 1,144.2 pence in London on Friday. Banking stocks stood out as some of the heaviest weights on the FTSE 100, with traders digesting a jump in oil prices and fresh concerns about inflation.
This shift stands out: just weeks back, HSBC ranked among Europe’s top-performing banks, buoyed by 2025 results that topped forecasts and a new pledge to deliver at least 17% return on tangible equity through 2028. Then Friday landed—a quick reversal, as investor enthusiasm faded and the focus snapped back to broader market pressures, eclipsing buzz around the bank’s restructuring.
Markets took another knock Thursday after Reuters said Bloomberg News had reported HSBC is considering slashing as many as 20,000 jobs—about 10% of its global headcount—in the next three to five years. The bank isn’t commenting. HSBC’s 2025 annual report listed 208,720 full-time equivalent employees at the end of December.
The report followed Group CFO Pam Kaur’s appearance at Morgan Stanley’s European Financials conference in London. During the event, Kaur said HSBC was eyeing artificial intelligence for “better productivity around the revenue line or just the cost benefit,” according to a transcript cited by MarketWatch. HSBC had flagged the March 18 appearance in advance. Morningstar
Another cloud: the Middle East. Last week, Reuters flagged HSBC and Standard Chartered as the European banks carrying the most risk if tensions escalate, citing J.P. Morgan’s estimates that about 4% of HSBC’s revenue and pretax profit are exposed. Kathy Chan, equity analyst at Morningstar, sees the region’s uncertainty fueling “additional risks” tied to credit costs and trade finance. Still, Matt Britzman at Hargreaves Lansdown pointed out that some disruption could actually boost demand for cash-management and foreign-exchange services. Reuters
Elhedery hasn’t budged from his Gulf wager. On March 9, he reiterated that HSBC’s stance on the GCC—Gulf Cooperation Council—remains steady. Reuters, citing company numbers, reported the UAE and Saudi operations have each year delivered roughly 5% of group profits over the last five years.
HSBC wasn’t the only casualty. Barclays slid 2.02% on Friday, with NatWest down 2.62%, a sign that investors were offloading UK bank stocks across the board instead of just targeting HSBC.
Here’s the rub: if oil prices hold up and inflation refuses to budge, higher borrowing costs could be back in the mix right as HSBC ramps up tech spending and tries to keep costs under control. For its 2025 results, HSBC pointed to pricier technology initiatives, performance pay, and inflation all adding to the cost base. The stock’s now stuck between a streamlined bank narrative and a tougher environment for global lenders.
