Citigroup: HSBC Holdings (00005.HK) adjusted pre-tax profit for the last quarter exceeded expectations by 10%, annual loan loss rate guidance slightly increased.

According to the Wise Finance APP, Citigroup released a research report stating that the underlying profit before tax (excluding special items) of HSBC Holdings (00005.HK) in the second quarter reached 9.2 billion US dollars, which is 10% higher than market consensus. The revenue was 5% higher than expected, costs were in line with expectations, and impairment losses were 12% lower than expected. The revenue exceeding expectations came from net interest income (2% higher) and non-interest income (13% higher). The reported pre-tax profit was 6.3 billion US dollars, which was 9% lower than market consensus, mainly due to Industrial and Commercial Bank of China (ICBC) (03328.HK) impairment fees of 2 billion US dollars exceeding expectations, but with a slight impact on capital.