HSBC Seen Under Pressure from Heightened Deposit Competition
Dow Jones10-27 16:03
0803 GMT - HSBC Holdings' third-quarter results were mixed, with deposit pressure emerging for the London-based bank, J.P. Morgan analysts write in a note. Banking net interest income was 2% below expectations while wealth performance was 4% lower than expected, JPM says. Banking net interest income was weighed by deposit pressure and competition in Hong Kong and the U.K., the analysts say. Unchanged 2026 net interest income guidance of at least $46 billion might disappoint against expectations of around $47 billion, JPM says. Overall, JPM expects low-single-digit downgrades to consensus earnings per share expectations for 2026 through 2028 due to weaker trends in net interest income and wealth. Shares are down 6.6%.
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