HSBC Holdings (00005.HK) will announce its interim performance as of the end of June next Wednesday (31), and due to the drag of loan growth decline and the narrowing of net interest margin in six months, Morgan Stanley predicts a pre-tax profit of 20.586 billion US dollars, compared to 21.657 billion US dollars in the same period last year, a year-on-year decrease of 4.9%. Excluding revenues from items that require attention, the benchmark recording basis income is 33.319 billion US dollars, compared to 33.54 billion US dollars in the same period last year, a year-on-year decrease of 0.7%. The bank predicts that HSBC's second-quarter dividend will be $0.1 per share, which is the same as last year, with a half-year cumulative dividend of $0.41, including a special dividend of $0.21 per share for the sale of Canadian business by HSBC. The bank predicts that HSBC's Tier 1 capital adequacy ratio for ordinary shares equity as of the end of June will be 15.3%, a year-on-year increase of 57 basis points, and the net interest margin in the second quarter will be 1.51%.

The following table lists the investment ratings and target prices for 7 brokerages:

Brokerage | Investment Rating | Target Price

China Securities Co., Ltd. | Buy | RMB 83.5

JPMorgan | Shareholding | RMB 83

CITIC Securities | Outperform | RMB 82.6

Goldman Sachs | Buy | RMB 81

Citigroup | Buy | RMB 78.3 ($7.8 British Pound)

Morgan Stanley | Shareholding | RMB 77.6

UBS Group | Neutral | About RMB 68.3 ($6.8 British Pound)

(fc/w)

~