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2026-10-28 11:41:08 BofA Securities published a research report stating that HSBC HOLDINGS (00005.HK)'s third-quarter results were soft. Pre-tax profit excluding special items was in line with market expectations, but revenue was about 2% below consensus forecasts, mainly dragged by weaker net interest income and wealth management fee income, largely offset by better impairment performance, while costs were in line with expectations. Management reiterated its key full-year targets and guidance, and announced a USD0.1 per share dividend and a USD1 billion share buyback, in line with market expectations. The broker noted that HSBC's banking net interest income was about USD11.7 billion, around 2% below market expectations. QoQ growth was about USD100 million, with day-count effects and rollover gains from structural hedging partly offset by one-off accounting changes. Balance sheet growth was largely offset by lower deposit spreads in Hong Kong and the UK. Wealth management fee income was flat YoY, but excluding one-off insurance impacts and adverse effects from strategic transactions totaling about USD200 million, it increased about 10% YoY. Insurance, private banking and investment distribution all recorded growth, while quarterly net new money reached USD41 billion. On capital, HSBC's common equity tier 1 ratio stood at 13.9%, below the market expectation of 14.1%. Management provided new guidance on Basel 3.1 plans and expects a positive impact of about 40 to 50 bps from January 1, 2027. The broker lowered its EPS forecasts for HSBC from 2026 to 2028 and cut the TP on HSBC (HSBA.L) shares listed in the UK from GBX1,720 to GBX1,685 (equivalent to about HKD175.91), while reiterating the Buy rating. It believes HSBC's franchise advantages remain valuable and the bank is expected to benefit from Asia's structural growth trend. (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. | |