Zhi Tong Cai Jing·2025-07-30 07:29Core Viewpoint - Citigroup's report indicates that HSBC Holdings achieved a pre-tax profit of $9.2 billion in Q2, exceeding market consensus by 10% [1] Financial Performance - HSBC's revenue was 5% higher than expected, with net interest income exceeding expectations by 2% and non-interest income by 13% [1] - The reported pre-tax profit of $6.3 billion was 9% lower than market consensus, primarily due to a $2 billion impairment charge from Hang Seng Bank [1] - Impairment losses reached $1.1 billion, which was 12% worse than market consensus, including $400 million related to Hong Kong commercial real estate [1] Capital and Dividends - As of June 30, HSBC's Common Equity Tier 1 (CET1) capital ratio was 14.6%, a decrease of 10 basis points quarter-on-quarter, but in line with market consensus [1] - The quarterly dividend and buyback plan remain unchanged at $0.10 per share and $3 billion, respectively [1] Guidance and Outlook - HSBC maintains its full-year guidance for 2025, including net interest income of approximately $42 billion and an adjusted cost growth rate of 3%, implying costs of about $33.3 billion [2] - The loan loss ratio guidance has been slightly adjusted upwards, with a forecast of around 40 basis points [2] - Despite concerns regarding the return on tangible equity (RoTE) guidance, HSBC's adjusted RoTE for the first half of 2025 reached 18.2%, suggesting the bank can comfortably meet its target range of 14-16% [2]