HSBC Expected to Post Strong Non-Interest Income Growth -- Market Talk

Dow Jones01-07

0523 GMT - HSBC's non-interest income growth momentum is likely to remain strong in 2026 and 2027, says Manyi Lu of DBS Group Research. The lender's wealth segment appears robust, supported by solid net new invested assets, Lu said. A strong Hong Kong capital-markets environment should also bolster noninterest income, she adds. Any downside risks to net-interest income are likely to be offset by tailwinds such as structural hedging and lower funding costs, the analyst adds. DBS raises its earnings expectations by 2% for 2026 and 7% for 2027, reflecting HSBC's updated net-interest-income guidance. DBS lifts its target price to HK$139.20 from HK$113.70 and reiterates its buy rating. HSBC shares are 1.5% lower at HK$126.90. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

January 07, 2026 00:23 ET (05:23 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment