To The Moon

Michael Roberts, head of HSBC's corporate and investment banking division, stated that just weeks after the bank's market capitalization historically surpassed £200 billion ($268 billion) for the first time, it is now poised to exceed £300 billion. Despite simmering geopolitical crises, Roberts expressed in an interview that Europe's largest bank has the potential to grow even larger, forecasting a prospect of the company's share price rising over 50% from its current level near record highs. "From £200 billion to where we are today... reaching £300 billion is undoubtedly within reach," said Roberts, CEO of HSBC's Corporate and Institutional Banking, adding, "In our view, given the areas where we believe we can generate profits, a higher valuation is indeed warranted." HSBC's share price—recently trading at around 1,223 pence—has continued its upward trajectory, bringing its current valuation to approximately £210 billion, solidifying its position as Europe's largest financial institution and leading peers such as Spain's Santander, Switzerland's UBS Group, and France's BNP Paribas. HSBC has undergone a massive restructuring of its global operations over the past year, cutting thousands of jobs, merging and shutting down some business lines, and selling off others as part of CEO Georges Elhedery's initiative to simplify the bank's structure and reduce costs. Roberts indicated that the restructuring phase is now largely complete, and the bank is exploring ways to drive growth. "We are truly looking to the future," he said, while also cautioning that the latest geopolitical turmoil, sparked by former US President Donald Trump's demand to control Greenland, presents significant challenges. "This is yet more surprises, more chaos, more unpredictability," Roberts stated, adding, "However, this time it's not just 'Independence Day'; this is clearly politically driven, which is somewhat different." Like all businesses, HSBC is investigating how to integrate new technologies such as artificial intelligence and digital assets into its operations. Roberts said he does not believe AI will lead to large-scale job cuts at HSBC; instead, he described the technology as an enabling tool that will help employees enhance their productivity. "Banks are built on processes and procedures," Roberts remarked. "They are the perfect future users, and I genuinely hope it will free up all that time." Roberts noted that bankers spend too much time on administrative tasks rather than meeting with clients, and AI will help rebalance this. Roberts stated that the increased use of digital assets in financial markets is inevitable. "There is no doubt that most transactions will be based on tokenization," he said, adding that the incorporation of quantum computing into trading operations is also underway. "Trading across all asset classes—I mean, none will be spared—will undergo fundamental changes," he commented. HSBC has been one of the leaders in the financial industry's embrace of quantum computing and last year disclosed trial results of the technology within its trading division, which demonstrated the potential of quantum technology to improve the pricing of financial assets.