HSBC's Strong Quarter Underpins New Guidance -- Market Talk

Dow Jones14:22

0620 GMT - HSBC reported a better-than-expected quarter on strength in net interest income and wealth, leading it to issue guidance ahead of consensus, Jefferies says in a note. The global bank's robust beat, which was driven by deposit growth and higher rates in Hong Kong, and visibility from the structural hedge, gives management the conviction to guide for at least $45 billion in net interest income for 2026, analysts write. This is $1.5 billion higher than expectations and implies single-digit upside to consensus, they add. Guidance for its annual costs implies a $33.8 billion cost base that beats estimates. "We suspect investors will probe the 1% increase in costs in-light of the competitive environment + necessary AI investments etc." (elena.vardon@wsj.com)

(END) Dow Jones Newswires

February 25, 2026 01:22 ET (06:22 GMT)

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