HSBC Holdings PLC's stock surged 5.33% during pre-market trading, marking a significant 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 reported attributable profit of $21.1 billion for 2025, topping its estimate of $20.3 billion. The bank simultaneously lifted its key profitability target, aiming for a return on tangible equity of 17% or better over the next three years, up from its previous mid-teens goal, 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, with one market commentary noting HSBC has "explosive potential" and that its strategic plan is bearing fruit.
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