JPMorgan: Strong performance of HSBC in the quarter supports new earnings expectations.

In a report, Jefferies stated that HSBC's quarterly performance exceeded expectations, thanks to strong net interest income and wealth management business. As a result, the bank announced a performance outlook that is above the market average expectations. Analysts wrote that the strong performance of this global bank exceeded expectations, combined with visibility brought by structural hedges, gives management confidence to predict that net interest income will reach at least $45 billion by 2026. These analysts added that this figure is $1.5 billion higher than expected, indicating single-digit upside potential relative to market average expectations. The annual cost expectations imply a cost base of $33.8 billion, which is better than expected. "We speculate that investors will explore a 1% cost increase, considering the competitive environment and necessary AI investments among other factors."