HSBC Investment Rating and Target Price (Table)
HSBC HOLDINGS (00005.HK) will announce its third-quarter results for this year on the 28th of this month (Tuesday). Although benefiting from the rise in Hong Kong interbank offered rates since August this year, which helps alleviate some net interest margin pressure, the market expects impacts from "items to watch" (non-recurring items, with market estimates suggesting dilution and impairment losses related to its associate company Bank of Communications (03328.HK), as Bank of Communications completed the issuance of A shares in June, reducing HSBC's equity stake from 19.03% to 16%). Based on the comprehensive forecasts from four brokerages, HSBC's reported benchmark pre-tax profit for the third quarter of 2025 is estimated to be between USD 6.264 billion and USD 8.1 billion, down 4.4% to 26.1% year-on-year from USD 8.476 billion in the same period last year, with a median of USD 8.0535 billion, reflecting a nearly 5% year-on-year decline.
The comprehensive forecasts from four brokerages predict that HSBC's dividend per share for the third quarter of 2025 will remain at 10 cents per share, unchanged year-on-year. Investors will focus on HSBC's net interest income and non-interest income growth performance, future dividends, Common Equity Tier 1 (CET1) capital ratio guidance, and pay attention to the expected credit loss situation related to the group's involvement in Hong Kong corporate real estate, as well as the latest operational guidance regarding the synergies brought by HSBC's plan to privatize Hang Seng Bank (00011.HK).
The table below lists the ratings and target prices from 11 brokerages:
Brokerage│Investment Rating│Target Price
Huatai Securities│Buy│HKD 134.83
JP Morgan│Growth│HKD 122
Barclays│Overweight│HKD 119.9 (GBP 11.5)
Citi│Buy│HKD 118.2
Jefferies│Neutral│HKD 116.8 (GBP 11.2)
DBS│Buy│HKD 113.7
Goldman Sachs│Buy│HKD 113
CICC│Outperform│HKD 111.9
Morgan Stanley│Overweight│HKD 111.7
Bank of America Securities│Buy│HKD 107.4 (GBP 10.3)
UBS│Neutral│HKD 103.7
