London, March 25, 2026, 11:12 GMT
HSBC Holdings Plc advanced in London trading Wednesday after announcing its inaugural chief AI officer and revealing a $2.5 billion issue of contingent convertible securities—loss-absorbing debt instruments used under stress. Shares traded at 1,204.2 pence as of 10:47 a.m. GMT, climbing 1.79% from Tuesday’s 1,181.4 pence close, AJ Bell data show. 1
HSBC’s moves carry weight as the bank tries to convince investors it can deliver at least 17% return on tangible equity through 2028—even as spending on AI draws more scrutiny. February’s annual results landed ahead of estimates, but Jefferies flagged doubts. The broker said investors might cheer the earnings beat, yet still question management’s outlook for just a 1% increase in 2026 costs, considering stiff competition and growing AI investments. 2
The move higher on Wednesday fed into a wider relief rally. According to Reuters, the FTSE 100 was ahead by 1.1% at 1028 GMT, with the FTSE banking index gaining 2.1% as signs of a possible ceasefire in the Middle East improved mood. Still, AJ Bell data put HSBC below its 1,410.6 pence year high. 3
HSBC will appoint David Rice, who had served as chief operating officer for its corporate and institutional banking division, as chief AI officer starting April 1. “AI plays a key role in how we get there,” Chief Executive Georges Elhedery said. Rice, for his part, called out the technology’s “ever-increasing role” in HSBC’s strategy going forward. 4
The bank also confirmed that all required conditions have now been satisfied for its $1.25 billion issuance of 2031 securities and another $1.25 billion of 2036 securities. Both sets of notes were issued on March 24, and the bank has applied to list them on Euronext Dublin. In market terms, these are known as CoCos. 5
Elhedery has overseen sweeping changes, splitting HSBC’s operations between East and West, pulling out of smaller investment banking ventures in the US and Europe, and cutting top-level roles. The bank reported in February that pretax profit dropped 7% in 2025, landing at $29.9 billion after booking $4.9 billion in one-time charges. Still, that result topped forecasts. 2
HSBC’s move isn’t isolated. Barclays and NatWest were both tipped to lift profitability targets as well, Reuters noted in January. Lloyds followed up, bumping its own target and highlighting the potential for generative AI to drive over 100 million pounds of extra profit by 2026. Earlier this year, Peter Rothwell, KPMG UK’s head of banking, pointed to “earnings resilience” underpinned by tighter cost discipline across the sector. 6
Still, things could change from here. Jefferies’ warning on costs hasn’t gone away. European bank shares have been moving with oil and shifting rate bets. Then there’s the Bloomberg News report picked up by Reuters last week, which said HSBC is considering job cuts that might reach roughly 20,000 positions; the bank declined to comment, and nothing’s been finalized. 2
