HSBC: Banking NII And Wealth Management Driving Profits

HSBC: Banking NII And Wealth Management Driving Profits

HSBC Holdings is initiated with a "Buy" rating, reflecting robust Q2 results and a powerful technical uptrend. Q2 and 1H 2023 delivered double-digit revenue growth, a 23% YoY profit increase, and a $1 billion buyback, with management raising 2026 NII guidance. HSBC targets at least $46 billion in banking NII by FY 2026, $1.5–$2 billion in cost savings, and 17%+ annual return on tangible equity through 2028. Valuation remains attractive with shares about 10% undervalued, strong momentum, and a $115 upside price objective into late 2026.

Europe’s largest bank just keeps delivering. HSBC Holdings (HSBC) booked solid Q2 numbers, as announced this week. Shares are up 42% on the year, trouncing returns of the global stock market and the S&P 500. The Financials sector component is also outperforming