Core Viewpoint - CICC has downgraded HSBC Holdings' 2025 and 2026 net profit estimates by 5% and 8% respectively due to macroeconomic uncertainties such as tariffs, while maintaining a "outperform" rating and target price, indicating a 16% upside potential from the current stock price [1] Group 1: Financial Performance - HSBC reported a 1Q25 pre-tax profit of $9.8 billion, exceeding market expectations, driven by strong non-interest income from wealth management and capital markets [1] - The core Tier 1 capital ratio at the end of 1Q25 was 14.7%, indicating a strong capital position [2] - The bank's net interest income (NII) decreased by 6% year-on-year to $10.6 billion, but showed a 4% increase when excluding the impact of sold businesses [3] Group 2: Non-Interest Income - Non-interest income grew by 24% year-on-year to $7.1 billion, with strong performance in transaction banking and wealth management [4] - Transaction banking fees increased by 13% year-on-year to $2.9 billion, primarily due to a 22% rise in foreign exchange-related business [4] - Wealth management income rose by 23% year-on-year to $2.3 billion, supported by strong growth in Asia, particularly in Hong Kong [4] Group 3: Shareholder Returns - The company declared a 1Q25 dividend of $0.1 per share, unchanged from the previous year [2] - HSBC completed a $2 billion share buyback and plans an additional $3 billion buyback, maintaining a total return rate of 10.2% from dividends and buybacks [2]