BofA Updates HSBC Price Objective, Forecasts After 'Solid' Q2 Earnings

12:21 PM EDT, 08/04/2026 (MT Newswires) -- BofA Global Research updated its price objective and forecasts for HSBC (HSBA.L) following the UK-based banking group's "solid" set of second-quarter financial results. "PBT ex notable items was 5% ahead of consensus, driven by higher income. Within this, Banking NII was 1% ahead, while fee and other income was 4% ahead. Wholesale and Transaction Banking and Wealth were both beats (+5% and +7% respectively). Cost and impairments were broadly in line. Buyback restarted this quarter as per management guidance, at $1bn (vs Visible Alpha consensus c.$2bn)," the research firm said Tuesday. "We remain positive on the stock and upgrade our [price objective to 17.20 pounds sterling from 16.50 pounds], reflecting (i) roll forward of estimates to 2028, and (ii) assuming a higher growth rate (3%,up from 2%) in part because loan growth in Hong Kong has accelerated in recent months." Analysts also noted the group's upwardly revised full-year 2026 banking net interest income guidance to "at least" $46 billion against the previous expectation of "around" $46 billion, compared with the consensus estimate of $46.5 billion. Taking these into account, BofA made changes to its forecasts for 2026 through 2028, including a "broadly unchanged" 2026 estimate for banking net interest income. Meanwhile, EPS projections for all three years were trimmed.