Haitong Int'l expects that the shareholder earnings of HSBC Holdings (00005) for fiscal years 2024 to 2025 will increase by 15.3% and decrease by 16.5%, respectively.
According to the research report released by Haitong Int'l through the Wiseinvest App, HSBC Holdings (00005) had a YoY revenue decline of 11.3% to USD 16.54 billion in Q2, and a pre-tax profit decline of 3.1% to USD 12.7 billion, both of which were better than market expectations. It is expected that the shareholder earnings will increase by 15.3% and decrease by 16.5% for fiscal years 2024 to 2025, with a target price of HKD 61.51 and a "neutral" rating.
The report states that HSBC Holdings has raised its guidance, but its non-performing loan rate is poor. Net interest income in Hong Kong has decreased mainly due to the quarterly decline in interbank rates and the migration of time deposits. The net interest income guidance for fiscal year 2024 has been raised from USD 41 billion to approximately USD 43 billion. In addition, HSBC Holdings has announced a further buyback of USD 3 billion in stocks. The new RoTE guidance for fiscal years 2024 and 2025 is around 15%.