Harvey Jones Buys HSBC After 5% Dip on Q1 Costs and Credit Losses

1 articles · Updated · twelfthmagpie.com · May 25

HSBC shares fell more than 5% after Q1 2026 results showed rising costs and higher credit losses, prompting investor Harvey Jones to buy on 5 May.
Jones argued the pullback left the bank on a reasonable valuation, with a forward price-to-earnings ratio of 11.5 and a 4.5% forward yield despite its buyback remaining on hold.
HSBC’s longer-term profit record stayed strong, with pre-tax profit at $29.91 billion in 2025 after $32.31 billion in 2024, following a multiyear boost from higher interest rates.
The purchase came against a market backdrop that has stayed resilient despite worries over Iran, AI exuberance and shadow banking, with the FTSE 100 up 5.18% this year.

Is buying HSBC a savvy move on fundamentals, or a risky bet given its exposure to the opaque shadow banking sector?

With the Iran crisis averted, is the AI bubble or shadow banking debt now the biggest threat to the global economy?

How will the recent energy shock permanently reshape global supply chains, even with the Strait of Hormuz now open?