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HSBC HOLDINGS: Macroeconomic Deterioration May Prevent Achieving 15% RoTE Target in Coming Yrs
HSBC HOLDINGS (00005.HK) stated that it will continue to target a mid-teens RoTE in each of the three years from 2025 to 2027 excluding notable items. It will also continue to expe...
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HSBC HOLDINGS: Macroeconomic Deterioration May Prevent Achieving 15% RoTE Target in Coming Yrs
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HSBC HOLDINGS (00005.HK)  -0.900 (-0.936%)    Short selling $204.66M; Ratio 10.847%   stated that it will continue to target a mid-teens RoTE in each of the three years from 2025 to 2027 excluding notable items. It will also continue to expect banking NII of around USD42 billion in 2025 based on its latest modelling, recognizing the favorable impacts of foreign exchange rates and the adverse effect of the fall in the HIBOR, particularly during 2Q25.

The group is well positioned to manage the changes and uncertainties prevalent within the global environment in which it operates, including in relation to tariffs. It has modelled a disruptive tariff scenario that includes significant reductions in policy rates, together with broader macroeconomic deterioration.

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While the group would expect the direct impact from tariffs to have a relatively modest impact on its revenue, the broader macroeconomic deterioration may see RoTE excluding notable items fall outside of its mid-teens targeted range in future years.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-01 16:25.)

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