HSBC Shares Continue to Outperform – Firm Grapping With Workplace Policies

HSBC's share price (LON: HSBA) is currently trading at 870p on the London Stock Exchange, up 0.78% on the day.

The banking giant is said to be grappling with evolving workplace policies, mirroring a broader industry trend towards increased in-office attendance, even as it continues to deliver solid financial results. Over the past week, HSBA has gained approximately 1.35%, demonstrating resilience amidst policy shifts and market fluctuations.

A look at longer term performance shows impressive gains, with a 26.41% jump in the last year, and a remarkable 122.5% surge over the past five years. These figures reflect a signficnat outperformance on the FTSE 100 (+7.87%, and 40.42%) over the same period, and underscore HSBC's ability to navigate the complexities of the global financial landscape.

The bank is currently said to be re-evaluating its workplace strategies, a move that could have significant implications for its operational costs, employee morale, and ultimately, its stock valuation. CEO Georges Elhedery is reportedly considering a global mandate requiring staff to work in the office at least three days a week.

This potential shift aims to standardize the bank’s hybrid work policies, which currently vary across regions. While no final decision has been made, such a move would align HSBC with other UK banks like Barclays, which have already implemented similar policies, signaling a wider return to pre-pandemic working norms within the financial sector.

Notably, HSBC UK has already linked bonuses to in-office attendance, informing retail and commercial banking staff that failing to meet the requirement of spending at least 60% of their time in the office or with clients could result in reduced bonuses. This policy, affecting approximately 23,000 employees, highlights the bank's commitment to increasing physical presence in the workplace and emphasizes the importance of in-person collaboration and client interaction, as perceived by management.

These policy changes are occurring against a backdrop of an industry-wide shift towards increased office attendance. Financial firms in London, including Panmure Liberum, Deutsche Bank, and UBS, are increasingly regulating work-from-home days, particularly on Mondays and Fridays. Some firms, like Peel Hunt and Man Group, have even instituted four- and five-day in-office requirements, respectively. This trend has fueled increased demand for premium office space in cities like London and Paris, with central London vacancy rates falling to 7.1% in March 2025, down from a pandemic peak of 8.7%.

HSBC's potential need to retain or lease additional office space, after initially planning to reduce its footprint and relocate to a smaller headquarters, could impact its operational expenses. Furthermore, tying bonuses to in-office attendance may affect employee morale and retention, which could ultimately influence operational efficiency.