HSBC Holdings PLC's stock surged 5.03% during pre-market and intraday trading, marking a significant 24-hour gain for the global banking giant.
The sharp rise follows the release of the bank's 2025 annual results, which revealed a profit beat despite a year-over-year decline. HSBC's pretax profit of $29.91 billion exceeded analyst consensus, driven by robust net interest income and a 24% climb in wealth fee income. The bank simultaneously lifted its key profitability target, aiming for a return on tangible equity of 17% or better over the next three years, and declared a substantial fourth interim dividend.
Investor sentiment was further bolstered by management's confident guidance, including an expectation for net interest income to reach at least $45 billion in 2026 and confirmation that cost-reduction goals are being achieved ahead of schedule. Analysts highlighted the strong underlying performance and upgraded targets as positive catalysts for the stock.
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