Morgan Stanley Maintains Equalweight on HSBC Holdings (HSBC), Projects Strong 2025 NII

HSBC Holdings PLC (NYSE:HSBC) ranks among the biggest publicly traded asset managers. On January 14, Morgan Stanley renewed coverage of HSBC Holdings PLC (NYSE:HSBC) with an Equalweight rating and HK$13.15 price target. The bank projects that HSBC’s banking net interest income for the fiscal year 2025 would be US$43.4 billion, partly offset by lower U.S. interest rates and bolstered by a recovery in HIBOR and deposit growth.

According to Morgan Stanley, HSBC Holdings PLC (NYSE:HSBC) will keep returning capital to investors through share buybacks and dividends, with buybacks expected to reach $6 billion in 2026 and $10 billion in 2027. The firm projects that HSBC Holdings PLC (NYSE:HSBC) will maintain levels above 16–17% after achieving a return on tangible equity of about 17% in 2025.

Additionally, Keefe Bruyette raised HSBC Holdings PLC (NYSE:HSBC) from Market Perform to Outperform on December 17. The firm highlights HSBC’s sustained dominance in Hong Kong, with projections that are currently higher than what the market as a whole expects.

HSBC Holdings PLC (NYSE:HSBC) is the largest bank in Europe by assets. It is headquartered in London and operates across more than 60 countries. Its core businesses include commercial banking, global markets, wealth management, and retail banking.

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Disclosure: None. This article is originally published at Insider Monkey.