Ge Long Hui·2025-10-29 02:21Core Viewpoint - UBS reports that HSBC Holdings' third-quarter performance benefited from improvements in net interest income and fee income, with adjusted pre-provision profit and pre-tax profit exceeding expectations by 9% [1] Financial Performance - Fee and other income exceeded expectations by 6%, while operating expenses were 1% higher than anticipated [1] - Pre-provision profit grew by 9%, despite an increase in provisions for commercial real estate in Hong Kong, with impairment expenses aligning with expectations at 40 basis points of total loans [1] Guidance Updates - HSBC has raised its guidance for tangible equity return and net interest income for banking operations for the fiscal year 2025 [1] - The updated guidance for annual net interest income is set at $43 billion or better (previously $42 billion, with market consensus at $42.45 billion) [1] - Target benchmark operating expenses are projected to increase by 3% year-on-year, approximately $33.5 billion (market consensus at $33.3 billion), with loan losses expected at around 40 basis points (market consensus approximately 42 basis points) [1] Target Price and Rating - UBS sets a 12-month target price for HSBC listed in the UK at 980 pence (approximately HK$101.3), maintaining a "neutral" rating [1]