Is HSBC Holdings plc (HSBA) an Exciting Emerging Market Play?

And recent data from the bank’s divisions point to a continuation in its developing market growth story. Subsidiary The Saudi British Bank announced in mid-April that net profit rose 11%, to $253m in the first quarter. Customer deposits rose 9.4%, to $32.6bn, while loans and advances increased 11% to $27bn. Meanwhile, the bank’s investment portfolio grew a massive 37.4%, to $8.6bn.

So is HSBC Holdings a buy?
Rocketing activity in emerging markets is expected to significantly boost revenues in coming years, and City analysts expect earnings-per-share growth of 31% and 12% in 2013 and 2014, respectively, to 64p and 71p. And a P/E reading of 10.9 and 9.8 for these years represents excellent value when viewed against a prospective earnings multiple of 12.7 for the whole banking sector.

Allied with an ultra-generous dividend policy — brokers expect payouts of 33p in 2013, and 36.9p in 2014 to carry yields of 4.9% and 5.4%, respectively — I believe that HSBC Holdings plc (LON:HSBA) is a stunning stock market pick.

The article Is HSBC Holdings an Exciting Emerging Market Play? originally appeared on Fool.com and is written by Royston Wild.

Fool contributor Royston Wild has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.