HSBC has crossed a major milestone, briefly becoming a $300 billion company for the first time as its shares surged to a record high on Tuesday. 

Shares in Europe’s largest lender climbed as much as 3% in early trading, pushing HSBC’s market capitalisation above the $300 billion mark and placing it in close competition with pharmaceutical giant AstraZeneca for the top spot on London’s FTSE 100 index. By 10:50 GMT, the stock was still up a solid 2.8% at 12.77 pounds.

The rally makes HSBC the best-performing stock on the FTSE 100 on the day, outpacing the broader index, which was up around 0.6%. The bank’s shares have now gained nearly 9% so far this year, reflecting renewed investor confidence in the sector.

HSBC’s strong showing comes amid growing optimism around the outlook for British banks. According to people familiar with the matter, HSBC, NatWest and other major UK lenders are expected to follow their European peers by raising profit targets when they report earnings in the coming weeks.

That optimism is already showing up in market performance. The FTSE 350 banking index has risen about 6% this year, comfortably ahead of euro zone banking stocks, which are up roughly 4.2% over the same period.

For investors, HSBC’s $300 billion milestone is more than a symbolic win. It underlines the bank’s improving earnings momentum and highlights the broader recovery in banking shares as higher interest rates and tighter cost control boost profitability across the sector. Photo by Cheqbo at the English-language Wikipedia.