DBS published a research report indicating that HSBC Holdings (00005.HK), as a global bank, is better able to cope with uncertainties compared to other local or regional Hong Kong banks. This includes credit risks related to commercial Real Estate in Hong Kong, the interest rate downcycle, and regional diversity, all of which help mitigate the negative impacts of China's economic slowdown and the potential imposition of tariffs by the USA.

DBS believes that HSBC will achieve its tangible equity return on tangible equity (RoTE) target of mid-teens as scheduled, expecting a RoTE of about 14% for the fiscal years 2025/2026. With a robust capital position and sustainable RoTE support, the bank anticipates maintaining strong shareholder returns, which will be a key catalyst for the stock.

The bank reaffirmed its "Buy" investment rating for HSBC, raising the Target Price from 75.5 to 84.2.