shares in HSBC (LSE: HSBA) shares jumped more than 5% in morning trading on Wednesday (February 25), meaning their price has more than tripled in the last five years. Driver? Another impressive set of results for the full year.

The bank actually saw a slightly lower gross profit than a year earlier. Down $2.4 billion to $29.9 billion. However, this is mainly due to a number of one-off losses and impairments, partly as a result of restructuring and cost optimization, amounting to USD 4.9 billion. And it is better than analysts expected.

HSBC reported a skyrocketing return on fixed capital (RoTE) of 17.2%, excluding one-offs. The bank expects RoTE to reach at least 17% in 2026–2028, with constant annual revenue growth. But the substantial question is: are HSBC shares still a good value?

“Decisive action and quick implementation”

CEO Georges Elhedery characterized HSBC’s performance this year as being all about decisive action and rapid execution. He told us: “Each of our four businesses has performed well and we have strong momentum across the bank.“

There is one thing that immediately stands out to me. Net interest income increased by $2.1 billion in 2025 to $34.8 billion. This means the difference between what the bank pays out to savers and what it receives from borrowers. And in times when inflation falls and central banks lower interest rates, it tends to get squeezed. This is worth paying attention to in 2026 and beyond.

The board announced a full-year dividend of 75 cents (approximately 55.5 pence) per share. This means a dividend yield of 4.3% compared to the HSBC share price at the previous close.

Valuation control

Diluted earnings per share of $1.20 (88.9p) have seen HSBC shares now trade at a price-to-earnings (P/E) ratio of over 15. Could this be a opulent valuation for banks at the moment as the global economy still looks delicate? My instinct tells me that he is at least fully appreciated. And renewed uncertainty in international trade and tariffs only reinforces this thought.

It is true that analysts predict a drop in P/E to 11 based on forecasts for 2026 and 10.5 a year later. After such a mighty year in 2025, there must be a good chance of improving earnings forecasts. However, HSBC is still at the top of the rankings FTSE100 bank valuations.

On Lloyds Banking Groupfor example, we have a P/E forecast of below 9 through 2027. However, a higher valuation for HSBC could make sense. It is not exposed to the same risks associated with one country. Many investors see the growth of the China region, which is largely driven by HSBC, as a brighter prospect.

What should investors do now?

I really like the banking sector and have long seen HSBC as a good candidate for a long-term investment. And I think I still do. I am currently a bit cautious about the potential for competition in international banking – the kind that UK-based Lloyds does not face.

I also fear that many current shareholders could look at their paper profits and decide to turn them into actual cash through a sale. However, over the long term, I think HSBC stock will still be worth considering.