Investment Rating - The report maintains a Neutral rating for HSBC Holdings PLC [2][3] Core Insights - The report highlights effective cost control and structural optimization as key strategies for the company [1] - The company expects a slight decrease in net income for 2025, with a projected decline of 2.6% year-on-year, followed by a modest recovery of 2.7% in 2026 [3] - The target price for HSBC is set at HK89.51,basedonaprice−to−bookratioof1.10for2025[3]FinancialPerformanceSummary−ForthefiscalyearendingDecember2023,netinterestincomewasreportedatUS35.796 billion, with a projected decrease to US33.404billionin2025[2][15]−Thepre−taxprofitfor2023wasUS30.348 billion, with expectations of US30.479billionin2025[2][15]−Thenetincomeattributabletotheparentcompanyfor2023wasUS22.432 billion, with a forecast of US22.327billionfor2025[2][15]−Thereturnonequity(ROE)isexpectedtodeclinefrom14.871.2 billion (up 8.8%), driven by net interest income and wealth management business income [4][17] - The wealth management business saw significant growth across all lines, including asset management (+8%), life insurance (+58%), private banking (+23%), and investment product sales (+31%) [20] - The company plans to maintain a dividend payout ratio of 50% in 2025, with a US2billionsharebuybackexpectedtobecompletedbeforetheQ12025earningsreport[18]CostManagement−HSBCaimstosaveapproximatelyUS1.5 billion in expenses by 2026, with a projected reduction of US$300 million in 2025 [9][21] - The company has successfully stabilized the proportion of time deposits over the past two quarters, reducing interest rate sensitivity through increased hedging [19] Credit and Risk Management - The credit cost guidance for 2025 is maintained at 30-40 basis points, with an annualized credit cost of 57 basis points reported for Q4 2024 [8][21] - The company reported a total loan amount decrease of 1% year-on-year, while deposits increased by 2.7% [7]
HSBC HOLDINGS(00005) 海通国际·2025-02-20 10:56