Bank of America Securities analyst Perlie Mong has reiterated their neutral stance on HSBA stock, giving a Hold rating today.
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Perlie Mong has given his Hold rating due to a combination of factors that reflect both positive performance and ongoing uncertainties. HSBC Holdings reported a strong second quarter in 2025, with underlying profit before tax exceeding expectations by approximately 10%, largely driven by higher non-interest income. This indicates a robust performance in areas such as Wealth and Wholesale Transaction Banking, which have benefited from market volatility. Additionally, the company announced a $3 billion share buyback and a 10-cent dividend, which are positive signals for investors.
Despite these encouraging results, Mong maintains a Hold rating due to uncertainties surrounding tariffs and the direction of US interest rates, which could impact future performance. The bank’s management has reiterated its guidance, including a net interest income target of around $42 billion, but has also acknowledged potential headwinds from the Hong Kong Interbank Offered Rate. Furthermore, while cost-saving measures and strategic exits are on track, the increased expected credit loss guidance reflects challenges in the commercial real estate sector in Hong Kong. These mixed signals contribute to the decision to maintain a neutral stance on the stock.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a £8.30 price target.