In "Major Banks," CICC raised the target price of HSBC Holdings to HKD 170.8, with last quarter's performance exceeding expectations

CICC published a report stating that HSBC HOLDINGS (00005.HK) exceeded expectations in its fourth-quarter performance, with a positive outlook for the next three years. Last year, adjusted (excluding special items) operating revenue was USD 71 billion, a year-on-year increase of 5.3%; the full-year adjusted net profit attributable to ordinary shareholders was USD 27.8 billion, a year-on-year increase of 12.5%, surpassing both the bank's and market expectations, mainly due to resilient interest margins and better-than-expected wealth management income.

The report indicated that the company announced performance guidance for 2026 to 2028, proposing that revenue can achieve year-on-year growth each year, with a target of 5% year-on-year growth by 2028, and adjusted ROTE exceeding 17% each year. Considering the controllable asset quality, the company's 2026 operating revenue forecast remains largely unchanged, while the net profit forecast is raised by 4% to USD 27.9 billion; taking into account a more moderate interest rate environment, the company's 2026 operating revenue forecast is raised by 4% to USD 75.7 billion, and the net profit forecast is raised by 11% to USD 30.2 billion. Comprehensive consideration of the company's fundamentals and the medium-to-long-term interest rate environment leads to a 25% increase in the target price to HKD 170.8, maintaining an "outperforming the industry" rating