HSBC Signals 300 Billion Valuation Ambition After Restructuring Push

Weeks after its market value first moved above 200 billion, HSBC Holdings Plc is being framed internally as a bank that could potentially be entering a much larger valuation range. Speaking at the World Economic Forum in Davos, Michael Roberts, chief executive of the lender's corporate and institutional banking arm, said a market capitalization in excess of 300 billion was within reach, even as geopolitical tensions continue to build globally. Roberts pointed to the bank's profit-generation potential as justification for a materially higher valuation, suggesting that the move from roughly 200 billion toward 300 billion was achievable from current levels. HSBC shares, last traded at about 1,223 pence, have continued to edge higher and are now valued at roughly 210 billion, placing the lender firmly ahead of European peers including Banco Santander, UBS and BNP Paribas.Roberts' comments come after a year of sweeping restructuring under group chief executive Georges Elhedery, during which HSBC cut thousands of jobs, merged or closed several business lines, and sold others as part of a broader effort to simplify operations and reduce costs. According to Roberts, that phase of transformation is now largely complete, with management increasingly focused on driving growth across the franchise. He cautioned, however, that the operating backdrop remains volatile, pointing to renewed geopolitical uncertainty sparked by US President Donald Trump's demand to take control of Greenland. Roberts described the situation as politically driven and more unpredictable than prior shocks, suggesting it could present fresh challenges for global banks.Looking further ahead, Roberts also outlined how technological change could reshape HSBC's business. He said artificial intelligence was unlikely to lead to mass layoffs and could instead improve productivity by reducing the amount of time bankers spend on administrative tasks. He also argued that the expansion of digital assets in financial markets was inevitable, with most trading potentially moving to a tokenized basis over time, while quantum computing was also expected to play a role in future trading operations. HSBC has already tested quantum technology within its trading unit, announcing last year that a trial demonstrated the potential to improve the pricing of financial assets, pointing to structural changes that could eventually affect trading across asset classes.