HSBC Acquires Over 5.5 Million Shares from Merrill Lynch

HSBC Holdings acquired over 5.5 million shares from Merrill Lynch. The purchase brings the total number of shares bought back to 61.4 million. This move is part of HSBC's efforts to return excess capital to shareholders. HSBC is one of the world's leading banking groups, with revenues broken down into retail banking and wealth management, commercial banking, and investment, financing, and market banking. The group had USD 1,654.9 billion in current deposits and USD 930.6 billion in current credits at the end of 2024.

HSBC Holdings plc (HSBC) has further expanded its share buyback program, acquiring over 5.5 million shares from Merrill Lynch. This latest purchase brings the total number of shares bought back to 61.4 million. The move is part of HSBC's ongoing strategy to return excess capital to shareholders, a key component of its broader shareholder value enhancement initiatives [1].

HSBC's revenues are primarily generated from retail banking and wealth management (42.3%), commercial banking (31.8%), and investment, financing, and market banking (25.9%). At the end of 2024, the bank had USD 1,654.9 billion in current deposits and USD 930.6 billion in current credits, reflecting its strong financial position [2].

The latest acquisition, which took place on August 13, 2025, involved the purchase of 2,312,712 shares on the London Stock Exchange and 1,622,400 shares on the Hong Kong Stock Exchange. The highest price paid per share was £9.6050 on the UK Venues and HK$102.2000 on the Hong Kong Stock Exchange, with a volume-weighted average price of £9.5595 and HK$101.6985, respectively [1].

Since the commencement of the buy-back program on July 31, 2025, HSBC has repurchased a total of 35,158,313 ordinary shares for a consideration of approximately US$439.2 million. The cancellation of these shares will reduce the company's issued ordinary share capital to 17,380,319,474 shares with voting rights. The buy-back program aims to enhance shareholder value by reducing the number of outstanding shares, thereby increasing the value of each remaining share [1].

The buy-back program is part of HSBC's broader capital return strategy, which includes a $9.5 billion payout in the first half of 2025, including a second interim dividend of 10 cents per share. The immediate impact on earnings per share (EPS) is clear: reducing the share count will amplify EPS, providing a short-term boost to investor sentiment. However, this benefit must be weighed against near-term headwinds, such as restructuring costs of $1.8 billion through 2026, which could pressure earnings and potentially offset some of the EPS gains from the buyback [3].

Investors should monitor HSBC's ongoing buy-back program and its impact on the company's share count and potential dilution. The buy-back program, coupled with strong financial performance, indicates HSBC's commitment to shareholder value. However, investors should also consider the broader market conditions and the company's future growth prospects.

References:
[1] https://www.tradingview.com/news/reuters.com,2025-08-13:newsml_RSM2430Va:0-reg-hsbc-holdings-plc-transaction-in-own-shares/
[2] https://www.ainvest.com/news/hsbc-significant-share-buyback-merrill-lynch-boosting-investor-confidence-2508/
[3] https://www.ainvest.com/news/hsbc-strategic-share-buy-driven-move-capital-reallocation-balance-sheet-strength-2508/