Goldman Sachs Group released a research report saying that to HSBC Holdings PLC(00005) "Buy" rating, adjust the 2021-25 earnings per share forecast of 9% gamma, 3%, 3%, 4%, 1%, and maintain the target price at HK $61.

The company's third-quarter pre-tax profit rose 76 per cent year-on-year to $5.403 billion, 32 per cent higher than the bank's forecast, mainly due to lower-than-expected credit charges, the report said. Profit before provision (PPOP) was also 16 per cent better than the bank had expected. Goldman Sachs Group's forecast for the company's net interest income for 2021-23 is 1% less than the market consensus, 3% lower than the market consensus, and 3% lower than market expectations. Considering the cost guidance, the PPOP is 3% more than the market expected. But the expected cost of credit is low, so the pre-tax profit for 2021-23 is + 4% compared with the market.

In terms of dividends, the bank raised its forecast for dividends per share this year by 8 per cent because it expects higher earnings per share and aims for a dividend ratio of 42 per cent, which is at the low end of the 40 per cent 55 per cent range, and its forecast for dividends per share for 2022-25 is basically unchanged. The most important thing is that there are expected to be $2 billion in annual share buybacks by 2025, and CET1 is expected to fall to 14.4% in 2022 and remain at the target range of 14% in 2023-25.

Goldman Sachs Group expects the Asian net interest margin to reach 1.94 per cent in 2024 and remain at this level (the net interest margin in 2024 / 25 was previously forecast to be 1.54 per cent soybean 1.56 per cent), and predicted that the net interest margin would increase by 30 pips from the current level of 1.64 per cent, mainly referring to the futures pricing model of the federal funds rate and the relationship between HIBOR and the policy rate.

In addition, the bank raised its expenditure forecast to match the new management guidelines and revised its operating expenditure forecast for 2021-25 by 0 per cent, 3 per cent, 2 per cent, 3 per cent, 3 per cent. In addition, the net rebate in 2021 will be increased from US $719 million to US $1.247 billion, and the cost of credit will remain basically the same in 2022-25.