Group 1 - UBS reports that Hang Seng Bank (00011) has received a privatization proposal from HSBC Holdings (00005), which has been approved at the special meeting of Hang Seng Bank shareholders and the court meeting, with the bank set to delist on January 27 [1] - UBS anticipates that this will expedite the completion of the transaction by 4 to 5 months [1] - HSBC Holdings is expected to provide more financial details when it announces its fiscal year 2025 results on February 25 [1] Group 2 - UBS holds a more positive view on this transaction compared to the market, although it does not change the ultimate value of HSBC Holdings [1] - UBS maintains a "Neutral" rating on HSBC Holdings (HSBA.L) with a target price of £10.35 [1]

Group 1 - UBS reports that Hang Seng Bank has received a privatization proposal from HSBC, which has been approved at the special shareholders' meeting and court session, with the delisting scheduled for January 27 [1] - UBS anticipates that this will expedite the transaction completion by 4 to 5 months [1] - HSBC is expected to provide more financial details when it announces its fiscal year 2025 results on February 25 [1] Group 2 - UBS holds a more positive view on this transaction compared to the market, although it does not change the ultimate value of HSBC [1] - UBS maintains a "Neutral" rating on HSBC Holdings listed in London with a target price of £10.35 [1]

Group 1 - The core viewpoint of the report is that HSBC Holdings (00005) is expected to achieve a return on tangible equity (RoTE) of approximately 19% to 20% from 2027 to 2028 [1] - Citi has adjusted its valuation model's terminal year, raising the target price from HKD 127.8 to HKD 138.3 while maintaining a "Buy" rating [1] - The bank has slightly lowered its earnings per share forecasts for HSBC from 2025 to 2027 by 0% to 1%, reflecting an assumption of an additional Federal Reserve rate cut in 2026 [1] Group 2 - Despite the slight downward adjustment, Citi's forecasts remain 2% to 9% higher than the company's latest market consensus adjusted pre-tax profit, benefiting from higher revenue assumptions, particularly strong non-interest income growth in the Asian wealth business [1] - Citi projects HSBC's pre-tax earnings for 2025, 2026, and 2027 to be USD 29.584 billion, USD 35.94 billion, and USD 40.301 billion respectively [1] - The expected dividend returns for 2025, 2026, and 2027 are projected to be 4.6 cents, 5.2 cents, and 5.9 cents respectively, with adjusted return on equity estimates of 12.2%, 15.9%, and 17.9% for the same years [1]

Core Viewpoint - Citigroup's report indicates that HSBC Holdings (00005) is expected to achieve a return on tangible equity (RoTE) of approximately 19% to 20% from 2027 to 2028, leading to an increase in the target price from HKD 127.8 to HKD 138.3, while maintaining a "Buy" rating [1] Group 1 - Citigroup has slightly adjusted HSBC's earnings per share forecasts for 2025 to 2027 down by 0% to 1%, while introducing forecasts for 2028 for the first time [1] - The minor downward adjustment reflects the assumption of an additional Federal Reserve rate cut in 2026, yet the forecasts remain 2% to 9% higher than the company's latest market consensus adjusted pre-tax profit [1] - The higher revenue assumptions, particularly from strong non-interest income growth in the Asian wealth business, are the main contributors to the optimistic outlook [1] Group 2 - Citigroup projects HSBC's pre-tax earnings for 2025, 2026, and 2027 to be USD 29.584 billion, USD 35.94 billion, and USD 40.301 billion, respectively [1] - The expected dividend returns for 2025, 2026, and 2027 are projected to be 4.6 cents, 5.2 cents, and 5.9 cents, respectively [1] - The adjusted return on equity for 2025, 2026, and 2027 is anticipated to be 12.2%, 15.9%, and 17.9%, respectively [1]

Group 1 - Hang Seng Bank has received a privatization proposal from HSBC Holdings, which has been approved at a special shareholders' meeting and court session, leading to the bank's delisting on January 27 [1] - UBS anticipates that the completion of the transaction will be expedited by 4 to 5 months [1] - HSBC Holdings is expected to provide more financial details when it announces its fiscal year 2025 results on February 25 [1] Group 2 - UBS holds a more positive view on the transaction compared to the market, although it does not alter the ultimate value of HSBC Holdings [1] - UBS maintains a "Neutral" rating on HSBC Holdings listed in London with a target price of £10.35 [1]

Group 1 - The core viewpoint of the report is that Citigroup has adjusted HSBC Holdings' earnings per share forecast for 2025 to 2027 down by 0% to 1% due to the Federal Reserve's interest rate cut predictions [1] - Citigroup believes that HSBC can achieve a return on tangible equity (RoTE) of approximately 19% to 20% in the years 2027 to 2028 [1] - After incorporating the 2028 forecast, Citigroup has raised the target price for HSBC from HKD 127.8 to HKD 138.3 and reiterated a "buy" rating [1]

Group 1 - The core viewpoint of the article is that Citigroup has adjusted its earnings per share forecast for HSBC Holdings for the years 2025 to 2027 down by 0% to 1% due to the Federal Reserve's interest rate cut predictions [1] - Citigroup believes that HSBC can achieve a return on tangible equity (RoTE) of approximately 19% to 20% by the years 2027 to 2028 [1] - After incorporating the 2028 forecast, Citigroup has raised the target price for HSBC from HKD 127.8 to HKD 138.3 and reiterated a "buy" rating [1]

Core Viewpoint - Citigroup's research report indicates a downward adjustment of HSBC Holdings' earnings per share forecast for 2025 to 2027 by 0% to 1% due to the Federal Reserve's interest rate cut predictions [1] Group 1 - Citigroup believes HSBC can achieve a tangible return on tangible equity (RoTE) of approximately 19% to 20% in 2027 to 2028 [1] - Following the inclusion of the 2028 forecast, Citigroup raised the target price for HSBC from HKD 127.8 to HKD 138.3 [1] - The firm reiterated a "buy" rating for HSBC [1]

Core Viewpoint - HSBC Holdings plans to privatize Hang Seng Bank, which has been publicly traded for 53 years, with the privatization expected to take effect on January 26, 2026, and the bank's listing on the Hong Kong Stock Exchange to be canceled on January 27, 2026 [1][2][10]. Privatization Approval - The privatization plan received overwhelming support at the court meeting and shareholders' meeting, with approximately 85.75% of the voting rights in favor and 14.25% against [4][12]. - The special resolution related to the privatization achieved a 97.30% approval rate [4][12]. Financial Details - HSBC Asia Pacific offered HKD 155 per share as the cash consideration for the privatization [3][11]. - As of January 8, Hang Seng Bank's share price was HKD 153.9, only HKD 1.1 below the proposed acquisition price [7][15]. Index Removal - Following the approval of the privatization plan, Hang Seng Bank will be removed from various indices, including the Hang Seng Index, effective January 14, 2026 [2][10]. Brand and Operations - Post-privatization, Hang Seng Bank will retain its brand, branch network, and independent banking license under Hong Kong banking regulations, maintaining its corporate governance and market positioning [8][16]. Market Context - Concerns have been raised regarding Hang Seng Bank's increasing bad debts in the real estate sector, with credit impairment for commercial real estate loans reaching HKD 250.12 billion, a 26% increase from six months prior [9][16]. - HSBC's CEO has stated that the privatization is a strategic decision unrelated to the bank's bad debt situation, reflecting confidence in Hong Kong's future [9][16].

Core Viewpoint - HSBC Holdings has successfully obtained approval for the privatization of Hang Seng Bank, which will become a wholly-owned subsidiary of HSBC by January 26, 2026, marking the end of Hang Seng Bank's 53 years of public trading since its listing in 1972 [1][2]. Group 1: Privatization Approval - The privatization proposal was publicly announced on October 9, 2025, with HSBC Asia Pacific offering HKD 155 per share for the privatization [2]. - During the court meeting, approximately 237 million shares (85.75% of voting rights) voted in favor, while 39.3 million shares (14.25%) voted against [2]. - The special resolution related to the privatization received a 97.30% approval rate at the shareholders' meeting [2][3]. Group 2: Timeline and Stock Status - The expected delisting of Hang Seng Bank from the Hong Kong Stock Exchange is set for January 27, 2026, with trading expected to cease on January 14, 2026 [3][4]. - Share transfer registration will be suspended starting January 20, 2026, and no share transfers will be processed during this period [4]. Group 3: Financial Context and Strategic Considerations - Concerns have been raised regarding Hang Seng Bank's increasing credit impairment in commercial real estate loans, which reached HKD 25.012 billion as of June 2025, a 26% increase from the previous period [5]. - HSBC's CEO has stated that the privatization is a strategic business decision aimed at demonstrating confidence in Hong Kong's future and is not directly related to the bank's bad debt situation [5]. - Post-privatization, Hang Seng Bank will retain its banking license, corporate governance, brand image, market positioning, and branch network [5].