2Q26: Revenue Beat Tempered by Higher Cost Growth Outlook

Research evidence excerpt

2Q26: Revenue Beat Tempered by Higher Cost Growth Outlook

Idea

August 4, 2026 05:07 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MHSBC Holdings | Asia Pacific Nick Lord

Equity Analyst

2Q26: Revenue Beat Tempered Nick.Lord@morganstanley.comMorgan Stanley Europe S.E., Madrid Branch+ +65 6834-6746

Alvaro Serrano

Equity Analystby Higher Cost Growth Outlook Alvaro.Serrano@morganstanley.com +44 20 7425-6942

What’s Changed Morgan Stanley Asia (Singapore) Pte.+

HSBC Holdings (0005.HK) From To Aitong Li

Price Target HK$161.40 HK$176.90 Research Associate

Aitong.Li@morganstanley.com +65 6834-6295

Morgan Stanley & Co. International plc+

AlphaSignals Earnings Reaction Almario Sulaj

Research Associate

Unchanged Modest upside Modest revision higher

Almario.Sulaj@morganstanley.com +44 20 7425-2049

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Underlying Ppop was 4% ahead of consensus, driven by a 4%

Other Income beat, and NII was ahead on better volumes. NII

guidance has been upgraded, but a tempered cost outlook could HSBC Holdings (0005.HK, 5 HK)

drive some profit taking. Post results, we raise our EPS 0.5-2%. Hong Kong Financials | Hong Kong

Stock Rating Overweight

HSBC trades on 2.2x TNAV for a 18% ROTE 2028E. Industry View In-Line

Price target HK$176.90

Adj. PBT was 5%/7% ahead of Consensus/MSe. Banking NII 1% ahead of consensus, Up/downside to price target (%) 5

Shr price, close (Aug 3, 2026) HK$168.20

with Other Income 3/4% vs. MSe/Consensus driving 4/5% better Ppop. Provisions 52-Week Range HK$168.90-95.00

1/8% below, notable items also lower. CET1 was 14.1%, up 10bp qoq vs. consensus Sh out, dil, curr (mn) 17,294

Mkt cap, curr (mn) US$370,922