GO
| HSI1 | 23,094.83 | 0.00 | -- |
| HSCEI1 | 7,791.63 | 0.00 | -- |
| Back Zoom + Zoom - Block Traded | |
|
2026-10-27 17:44:22 JPMorgan released a report saying that HSBC HOLDINGS (00005.HK)'s 3Q results were mixed. Underlying pretax profit and the share buyback were broadly in line with expectations, while revenue and pre-provision operating profit were 2% to 3% below market forecasts respectively. Impairment provisions were lower than expected, but the group did not lower its 2026 credit cost guidance. JPMorgan noted that the main disappointment for HSBC HOLDINGS (00005.HK) was net interest income, which was 2% below market expectations and broadly flat QoQ. Although the bank benefited from higher structural hedge reinvestment yields, more calendar days during the quarter and transaction volume growth, intensified deposit competition in Hong Kong and the UK pushed up time deposit rates. The proportion of time deposits in the deposit mix increased from 36% to 38%, and every 1 ppt increase would reduce net interest income by around USD200 million. The group maintained its guidance of at least USD46 billion in net interest income for 2026, in line with market expectations. JPMorgan added that HSBC HOLDINGS (00005.HK)'s wealth business performance was also 4% below market expectations and flat YoY. Private banking revenue rose 16% YoY, but insurance revenue fell 16% YoY due to non-recurring factors. Net new money during the period amounted to USD41 billion. The CET1 ratio stood at 13.9%, slightly below the market expectation of 14.1%. JPMorgan maintained an Overweight rating on HSBC HOLDINGS (00005.HK) with a TP of HKD205. The broker believed there is downside risk to the market's 2026-2028 EPS forecasts for HSBC HOLDINGS (00005.HK), mainly due to weakening trends in net interest income and the wealth business. It expected the share price to trade sideways in the near term. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |