Group 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]

Core Viewpoint - Citigroup's report indicates that HSBC Holdings (00005) is expected to achieve a return on tangible equity (RoTE) of approximately 19% to 20% from 2027 to 2028, leading to an increase in the target price from HKD 127.8 to HKD 138.3, while maintaining a "Buy" rating [1] Group 1 - Citigroup has slightly adjusted HSBC's earnings per share forecasts for 2025 to 2027 down by 0% to 1%, while introducing forecasts for 2028 for the first time [1] - The minor downward adjustment reflects the assumption of an additional Federal Reserve rate cut in 2026, yet the forecasts remain 2% to 9% higher than the company's latest market consensus adjusted pre-tax profit [1] - The higher revenue assumptions, particularly from strong non-interest income growth in the Asian wealth business, are the main contributors to the optimistic outlook [1] Group 2 - Citigroup 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 [1] - The adjusted return on equity for 2025, 2026, and 2027 is anticipated to be 12.2%, 15.9%, and 17.9%, respectively [1]

Group 1 - The core viewpoint of the report is that Citigroup has adjusted HSBC Holdings' earnings per share forecast for 2025 to 2027 down by 0% to 1% due to the Federal Reserve's interest rate cut predictions [1] - Citigroup believes that HSBC can achieve a return on tangible equity (RoTE) of approximately 19% to 20% in the years 2027 to 2028 [1] - After incorporating the 2028 forecast, Citigroup has raised the target price for HSBC from HKD 127.8 to HKD 138.3 and reiterated a "buy" rating [1]

Core Viewpoint - Citigroup's research report indicates a downward adjustment of HSBC Holdings' earnings per share forecast for 2025 to 2027 by 0% to 1% due to the Federal Reserve's interest rate cut predictions [1] Group 1 - Citigroup believes HSBC can achieve a tangible return on tangible equity (RoTE) of approximately 19% to 20% in 2027 to 2028 [1] - Following the inclusion of the 2028 forecast, Citigroup raised the target price for HSBC from HKD 127.8 to HKD 138.3 [1] - The firm reiterated a "buy" rating for HSBC [1]