Ge Long Hui·2026-02-26 03:25Core Viewpoint - UBS reports that HSBC Holdings delivered strong performance in Q4 last year, with pre-tax profit excluding significant items exceeding market expectations by 9% [1] Financial Performance - Revenue exceeded expectations by 3%, while net interest income was 6% higher than anticipated (5% higher when excluding one-off items) [1] - Fee and other income fell short of expectations by 1% [1] - Operating expenses met expectations, and credit impairment was 12% lower than market forecasts [1] Capital Ratios - The Common Equity Tier 1 (CET1) capital ratio stood at 14.9%, surpassing market expectations [1] - Adjusting for the privatization of Hang Seng, the pro forma CET1 capital ratio is 13.8% [1] Acquisition Impact - The net cost impact of the acquisition of Hang Seng on the CET1 capital ratio is confirmed to be 110 basis points, which is better than expected [1] - The acquisition is projected to generate $900 million in earnings by FY2028, with related restructuring costs estimated at $600 million [1] - The transaction is significant for increasing HSBC's exposure to the Hong Kong banking sector and simplifying the group's structure [1] Dividend and Stock Buyback - HSBC declared a fourth-quarter dividend of $0.45 per share and continues to suspend share buybacks, aligning with market expectations [1] Ratings and Price Targets - UBS maintains a "Neutral" rating on HSBC, with a target price of HKD 140.6 for Hong Kong shares and GBP 13.09 for London-listed shares [1]