Harvey Jones Buys HSBC After 5% Dip on Q1 Costs and Credit Losses
Updated
Updated · twelfthmagpie.com · May 25
Harvey Jones Buys HSBC After 5% Dip on Q1 Costs and Credit Losses
1 articles · Updated · twelfthmagpie.com · May 25
Summary
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.