Zhi Tong Cai Jing·2026-01-09 06:32Group 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]