Core Viewpoint - HSBC Holdings is expected to report a decline in quarterly revenues and earnings for Q1 2025 compared to the previous year, influenced by rising credit losses and lower revenues [1][2]. Financial Performance Expectations - The consensus estimate for HSBC's earnings is $1.60 per share, reflecting a 5.9% decrease from the same quarter last year [2]. - Sales are estimated at $16.46 billion, indicating a significant 20.7% decline year-over-year [2]. Investment Banking (IB) Revenues - Global M&A activity in Q1 2025 was less robust than anticipated, with only marginal increases in deal value and volume, primarily driven by the Asia Pacific region [3]. - Economic uncertainty, influenced by tariff policy ambiguity and a potential trade war, has led companies to reconsider their M&A strategies, resulting in limited growth in advisory fees for HSBC [3]. IPO and Underwriting Activity - The IPO market shows cautious optimism amid market volatility and rising costs, with some activity in follow-up equity issuances [4]. - Strong bond issuance volume is noted due to solid investor demand, although macroeconomic uncertainties remain [4]. Trading Revenues - Client activity and market volatility were strong in Q1, with concerns over trade wars, inflation, and interest rates affecting client behavior [5]. - HSBC's trading performance is expected to be solid due to increased client activity amid high market volatility [6]. Interest Income - Mixed approaches to interest rate adjustments by global central banks are likely to stabilize funding costs for HSBC, with a modest rise in loan demand anticipated [7]. - Interest income for HSBC is expected to improve in the upcoming quarter [8]. Expense Management - HSBC has historically controlled expenses, but overall costs are expected to be high in Q1 2025 due to efforts to expand market share and enhance digital capabilities [8]. - The company's organizational overhaul is likely to contribute to increased expenses [8]. Earnings Prediction Model - The quantitative model indicates that HSBC may not achieve an earnings beat due to a lack of a positive Earnings ESP and a Zacks Rank of 3 (Hold) [9][10].