Ge Long Hui·2025-07-31 03:56Core Insights - Goldman Sachs reported that HSBC Holdings' core earnings for Q2 exceeded both the bank's and market's expectations by 9% and 10% respectively, driven by strong pre-provision profit (PPOP) and better-than-expected non-bank net interest income performance [1] Financial Performance - HSBC's management reaffirmed guidance for bank net interest income to reach approximately $42 billion by 2025, with cost growth around 3% and a return on tangible equity (ROTE) between 14% and 16% for the period from 2025 to 2027 [1] - The bank raised its full-year credit cost guidance to approximately 40 basis points [1] Market Expectations - Management anticipates that if the Hong Kong Interbank Offered Rate (HIBOR) remains at about 1%, it will negatively impact bank net interest income by approximately $10 million per month [1] - Goldman Sachs slightly raised its forecasts for bank net interest income for 2025 to 2027 to $41.9 billion, $43 billion, and $44.1 billion, exceeding market expectations by up to 4% [1] Earnings Projections - Earnings per share forecasts for 2025 to 2029 were increased by 6%, 5%, 4%, 3%, and 2% respectively [1] Target Price Adjustment - Based on the upward revision of earnings forecasts, Goldman Sachs raised HSBC's target price for its UK shares from 1,020 pence to 1,060 pence, and for its H-shares from 109 HKD to 110 HKD, maintaining a "Buy" rating [1]