Core Viewpoint - CICC has adjusted HSBC Holdings' revenue and net profit forecasts for 2025E downwards due to slowing non-interest income growth, while raising the forecasts for 2026E based on resilient net interest margins [1] Group 1: Financial Performance - HSBC's 3Q25 revenue reached $17.9 billion, a year-on-year increase of 4%, with net profit attributable to ordinary shareholders rising 1% to $6.2 billion, exceeding expectations [2] - The main driver for the better-than-expected performance was the net interest income, which grew 3% quarter-on-quarter and 2% year-on-year, supported by rapid deposit growth [3] - Non-interest income grew 8% year-on-year in 3Q25, although this was a slowdown from previous growth rates of over 20% [4] Group 2: Wealth Management and Cost Control - Wealth management income surged 29% year-on-year in 3Q25, driven by strong performance in the Hong Kong stock market and significant growth in fund distribution and insurance business [5] - Operating expenses increased by 3.5% year-on-year to $8.4 billion, which is slower than revenue growth, aligning with the company's annual cost growth expectation of around 3% [6] Group 3: Credit Quality and Return on Equity - The provision for credit losses was $1 billion in 3Q25, a 2% increase year-on-year, with credit costs remaining stable at 41 basis points [7] - The company has raised its 2025 return on tangible equity (ROTE) guidance to "over 15%" due to improved net interest and wealth management income [9]