Core Viewpoint - Goldman Sachs reported that HSBC Holdings (00005) announced its third-quarter performance, with a pre-tax profit of $9.1 billion, exceeding both Goldman Sachs' original forecast and market consensus by 7% and 9% respectively, primarily driven by better-than-expected revenue performance [1] Group 1: Financial Performance - HSBC's pre-tax profit, adjusted for certain items, reached $9.1 billion, benefiting from stronger-than-expected net interest income from both banking and non-banking sectors [1] - The Common Equity Tier 1 (CET 1) capital ratio stood at 14.5%, aligning with market expectations [1] Group 2: Future Guidance - HSBC raised its return on tangible equity (ROTE) forecast for the fiscal year 2025 to a "mid-teens" range (14%-16%) or higher, compared to the market consensus of 16% [1] - The bank also increased its net interest income guidance for banking operations in fiscal year 2025 to $43 billion or more, up from the previous estimate of $42 billion, with market consensus at $42.5 billion [1] Group 3: Cost Management - HSBC maintained its cost growth target for fiscal year 2025 at approximately 3%, with total operating expenses expected to reach $33.5 billion, slightly above market consensus of $33.3 billion [2] - The bank plans to achieve cost savings of $1.5 billion by the end of 2026, with expected credit costs for fiscal year 2025 around 40 basis points, slightly lower than market consensus [2]

Group 1 - Goldman Sachs reported that HSBC Holdings (00005) announced its third-quarter results, with a pre-tax profit of $9.1 billion, exceeding both Goldman Sachs' forecast and market consensus by 7% and 9% respectively, driven by better-than-expected revenue performance [1] - Revenue growth was propelled by both net interest income from banking and non-banking sectors surpassing expectations, while costs and credit provisions were largely in line with expectations [1] - The Common Equity Tier 1 (CET1) capital ratio stood at 14.5%, which also met market expectations [1] Group 2 - HSBC raised its return on tangible equity (ROTE) guidance for the fiscal year 2025 to a "mid-teens" range (14%-16%) or higher, with market consensus at 16%, and maintained a "mid-teens" outlook for ROTE from 2025 to 2027, with the average market expectation for 2026-2027 at 15.7% [1] - The bank also increased its net interest income guidance for banking operations in fiscal year 2025 to $43 billion or more, up from approximately $42 billion, with market consensus at $42.5 billion [1] - HSBC maintained its cost growth target for fiscal year 2025 at around 3%, with total operating expenses expected to reach $33.5 billion, slightly above market consensus of $33.3 billion, and plans to achieve cost savings of $1.5 billion by the end of 2026 [2] Group 3 - The expected credit cost for fiscal year 2025 is approximately 40 basis points, slightly below market consensus, while the medium-term credit cost guidance remains at 30 to 40 basis points [2] - Goldman Sachs currently has no investment rating for HSBC, which recently announced plans to privatize Hang Seng Bank (00011), with Goldman Sachs acting as a joint financial advisor for this transaction [2]