According to a research report published by Goldman Sachs, HSBC Holdings' basic profit before tax for the third quarter was US$10 billion, lower than the bank's forecast of 4%, in line with market expectations, and the weaker-than-expected net interest income of banks and non-banks was offset by lower provisions. HSBC's stock price closed down 5.6% yesterday. Investors' discussions focused on the bank's net interest income trend, as deposit betas were higher than expected, and management mentioned increased deposit competition and demand deposit conversion periods, particularly in Hong Kong. The bank believes that if market conditions continue to weaken, further transfers are still possible; however, part of the pressure may be due to the bank's intention to protect or seek deposit market share in Hong Kong to support stronger loan growth and rebuild Hang Seng Bank's position after privatization. The bank lowered its profit forecast mainly because it was more cautious about the net interest income trajectory, lowered the bank's net interest income forecast by up to 3.2%, and lowered non-bank net interest income by up to 2%. The basic profit forecast before tax from 2026 to 2029 was at most about 3% lower than market expectations. The bank lowered its target price by 2% from HK$192 to HK$188, maintaining a “buy” rating.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.