Morgan Stanley has issued a research report on the banking sector, expecting Asian banks' results in 1Q26 to grow due to the increased non-net interest income.The broker also forecasts that a QoQ drop of around 66 bps in the HIBOR will heap downward pressure on the net interest income of HSBC HOLDINGS (00005.HK) +2.200 (+1.553%) Short selling $225.55M; Ratio 8.458% and STANCHART (02888.HK) +3.400 (+1.695%) Short selling $2.60M; Ratio 0.677% . Such impact, however, will be offset by strong non-net interest income supported by market volatility.Related NewsJPM: STANCHART (02888.HK) Valuation Yet to Reflect Long-term RoTE Target, Rating OverweightLooking ahead, Morgan Stanley believes uncertainties will persist. As the expected timing of rate cuts this year is likely to be delayed by one quarter, the broker has raised its net interest income forecasts for HSBC HOLDINGS and STANCHART for this year. Capital market activity levels are also likely to remain uncertain for the rest of the year.Morgan Stanley has slightly adjusted its target prices for HSBC HOLDINGS and STANCHART by less than 1% to HKD149 and HKD195, respectively. Both of their ratings remain Overweight. The investor seminar in May should be the next key catalyst for the two banks.(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-22 16:25.)
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