The HSBC (LSE: HSBA) share price has soared ahead of other major UK banks, up 26% in the past six months. When comparing performance, it’s clear to see there’s some major differences between the banks.
| Bank | 6-month performance |
|---|---|
| HSBC | 26% |
| Lloyds | 3.5% |
| NatWest | -4.1% |
| Barclays | 4.9% |
So what’s led to such a major diversion in price lately?
A widening economic divide
HSBC may be listed in London and sits in the FTSE 100, but the group generates most of its business in Asia. In 2025, Hong Kong alone contributed about 22% of group revenue, with around $15.9bn of a $71bn total coming from the city.
Meanwhile, profitability remains solid: excluding notable items, return on tangible equity (RoTE) improved to 17% in 2025, up from 16% in 2024.
That Asian tilt helps explain why the shares have outpaced domestic banks. Their performance is increasingly driven by wealth management and corporate banking in Hong Kong, mainland China and Singapore, rather than UK mortgages or current accounts.
Chief executive Georges Elhedery has been very clear on this, saying Asia’s rising middle class and cross‑border wealth flows give the bank “fertile ground for medium‑term growth”, with Hong Kong set to overtake Switzerland as the world’s biggest cross‑border wealth hub by 2030.
So HSBC is moving much more like an Asia‑exposed financial than a pure UK domestic lender. Its share price reacts not just to Bank of England rate decisions, but to Chinese growth data, Hong Kong policy shifts, and capital flows into Asian wealth hubs.
The big question is whether that is a short‑term trend, or the start of a more permanent reframing of HSBC as a gateway to Asian growth.
What does this mean for investors?
For income investors, the dividend remains attractive – but it’s not the whole story.
On UK data, HSBC currently offers a total dividend yield of about 4%, with forward estimates around 4.5% depending on the data source. Over the past decade, the overall pattern has been one of gradually rising dividends, albeit with some bumps along the way.
Crucially, Asia is now a major driver of those earnings. In 2024, profit before tax rose to $32.3bn, helped by revenue growth in wealth and commercial banking, much of it in Asia. In 2025, group profit before tax was $29.9bn, above market expectations, with strong net fee income and a resilient wealth business anchored in Asia.
But the Asia focus cuts both ways.
Earlier this week, HSBC shares fell about 3.9% after reports of new Hong Kong rules restricting mainland Chinese investors, including a requirement that funds in certain investment accounts must originate outside mainland China.
Local reports also flagged banks tightening rules on offshore accounts and wealth products for mainland clients. That shows how quickly sentiment can swing when Beijing or Hong Kong tweak capital‑flow rules.
Final thoughts
For me, the upshot is straightforward. While there is genuine risk in HSBC’s Asian exposure, its global spread and strong balance sheet make it a very different proposition to the UK‑only banks.
It offers access to Asian wealth growth without leaving the FTSE 100, backed by a roughly 4% dividend yield that is supported by diversified, long‑term earnings.
For UK investors willing to live with some geopolitical noise, that combination looks more like an opportunity to consider than a problem.
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Mark Hartley owns shares in HSBC.
