<div id="readability-page-1"><div><p>Morgan Stanley said in a report that HSBC HOLDINGS (00005.HK)<span> </span><span> -6.500 (-4.533%)  </span> <span> Short selling $265.75M; Ratio 41.339%  </span>  announced its 1Q results at noon, with underlying pre-provision operating profit (PPOP) 1% above market expectations. Other income exceeded forecasts by 6%, sufficient to offset higher costs. Guidance for net interest income was revised upward, and together with growth in other income, offset the increase in expected credit losses (ECL) to 45 bps. The broker therefore raised its EPS forecasts for HSBC HOLDINGS by 1.5% to 2.4%.</p><p>The broker noted that HSBC HOLDINGS is currently trading at 1.8x tangible net asset value (TNAV), based on a 2026 and 2028 return on tangible equity (ROTE) of 17-19%. Capital returns remain attractive to shareholders. Adjusted pre-tax profit was in line with market expectations. Banking net interest income met forecasts, while other income offset higher costs, driving PPOP above expectations. Provisions were 9% higher than market estimates. The Common Equity Tier 1 (CET1) ratio was 14%, down 40 bps QoQ, in line with expectations and incorporating the consolidation of Hang Seng Bank, which the broker believes paves the way for the resumption of share buybacks in 2Q. A dividend of USD0.10 per share was declared, in line with expectations. TNAV per share was USD9.46, down 2% QoQ.</p><p>M Stanley said HSBC HOLDINGS reiterated its ROTE target of at least 17%. The group now expects 2026 banking net interest income of about USD46 billion, higher than its previous guidance of &#34;at least USD45 billion&#34;, benefiting from an improved interest rate outlook (the broker forecasts USD46 billion, versus market consensus of USD45.8 billion). The ECL charge rate was raised from about 40 bps to 45 bps. The broker forecasts ROTE will rise to 18.6% by 2028. The company remains confident in its &gt;17% guidance, despite tail risks under a stress scenario of prolonged Middle East conflict. The broker believes risks are more on the revenue side rather than the provisioning side, with activity in April remaining strong.</p><p>M Stanley reiterated its Overweight rating on HSBC HOLDINGS and slightly raised its TP from HKD149 to HKD150.5. (wl/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-05 12:25.)</p></div><p>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</p></div>

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<p>Morgan Stanley reported that HSBC HOLDINGSexceeded market expectations in its 1Q results, with underlying pre-provision operating profit (PPOP) 1% above forecasts. The bank's net interest income guidance was raised, offsetting higher expected credit losses. EPS forecasts were increased by 1.5% to 2.4%. The broker maintained an Overweight rating and slightly raised the target price to HKD150.5, citing strong capital returns and a robust outlook despite potential risks from geopolitical tensions.</p>

- Morgan Stanley reported that HSBC HOLDINGS exceeded market expectations in its 1Q results, with underlying pre-provision operating profit 1% above forecasts and other income 6% higher.  
- The broker raised its EPS forecasts for HSBC by 1.5% to 2.4%, citing attractive capital returns and an upward revision in guidance for banking net interest income to about USD46 billion.  
- HSBC's Common Equity Tier 1 ratio was 14%, and the broker reiterated an Overweight rating, slightly increasing the target price from HKD149 to HKD150.5.

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M Stanley: HSBC HOLDINGS  NIM and Other Income Outlook Offset Higher Provisions; Slightly Raises TP to HKD150.5