Zhitong Finance APP learned that Citi issued a research report stating that it rated HSBC Holdings (00005) as "Buy," with a target price of 89.8 HKD.

HSBC confirmed that they will quantify the restructuring costs and savings related to the current reorganization in their full-year results, with market expectations already modeled to approximately 0.6 billion US dollars in severance pay by 2025. If the payback period for cost savings is less than 12 months, the severance pay may be even higher. The bank believes that the downside risk for 2025 is limited, and with detailed explanations of cost savings, there may be upside risks beyond 2026, and the bank also sees potential for an increase in market revenue expectations.

The bank stated that supported by high long-term rates from the Federal Reserve, it predicts that net interest income from banking operations will be 41.6 billion US dollars in 2025, while the market generally expects 40.8 billion US dollars. The management also confirmed that they expect the financial management business to continue to outperform earlier guidance; they believe that a target return on tangible equity (RoTE) of 14-16% can be achieved in 2025 and 2026, and the performance in the 2024 fiscal year may drive upgrades and reevaluations of market earnings forecasts.