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<Research>Citi: HSBC HOLDINGS 4Q25 Adj. PBT Beats; Targets Raised for Healthy Upgrades
Recommend 33 Positive 60 Negative 46 |
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Citi released a report on HSBC HOLDINGS (00005.HK), which logged an underlying PBT (excluding notable items) of USD8.6 billion for 4Q25, 9% higher than consensus. Revenue exceeded expectations by 3%; costs were in line; and impairments were 12% better than expected. The revenue outperformance was mainly driven by Banking NII (6% higher), while non-NII was broadly in line (1% lower). The CET1 ratio will decrease to 13.8% on a pro forma basis for the post-privatization of Hang Seng Bank. The group currently guides that the transaction will bring USD500 million in incremental synergies (while Citi believed consensus assumes few synergies). The group raised its target, now expecting a RoTE of 17% or higher for FY26-FY28 (16.6-17% in consensus). Overall, this is a good print in the broker's view, with reassuring strategic updates, providing useful new information on Hang Seng Bank. Targets was raised, expected to drive healthy upgrades. Citi rated HSBC HOLDINGS as Buy with a target price of HKD143.3. AASTOCKS Financial News Website: www.aastocks.com |
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