Goldman Sachs Turns Positive on HSBC as Bank Pursues Efficiency Drive

HSBC (LON: HSBA) received a fresh vote of confidence from Goldman Sachs in a recent note, with the firm reinstating coverage of the bank’s shares with a Buy rating and a 1,675p price target.

Analyst Chris Hallam told clients that the bank offers a near-unique combination among European, Asian and global peers, citing its scaled deposit base, consistent structural growth and a balance sheet geared toward liquidity.

Goldman expects steady revenue expansion over the next two years, modelling 4% to 6% annual growth in 2026 and 2027.

That includes 3% to 5% growth in net interest income and 6% to 8% growth in fees, supported by what the bank describes as a resilient franchise across its core markets.

The rating comes as HSBC reportedly considers one of its most significant restructurings in years. According to a recent Bloomberg article, the lender is evaluating deep job cuts, with as many as 20,000 roles potentially affected over the next three to five years as the bank accelerates its use of artificial intelligence to automate middle- and back-office functions.

Bloomberg said that people familiar with the early-stage planning said the review covers roles that may not be replaced and could include headcount reductions through business disposals.

The strategy is said to be part of CEO Georges Elhedery’s broader overhaul, which has already delivered substantial cost cuts and a renewed focus on Asian growth markets. Bloomberg Intelligence estimates the potential restructuring could trim annual expenses by 5% to 6%.