topstockalerts
Oct 15, 12:52 PM
BofA Securities named HSBC its top banking-sector pick for the year and said it is most bullish on NatWest ahead of Q3 earnings. Analyst Perlie Mong expects mixed results for UK banks, with higher interest rates and solid loan growth supporting net interest income, although benefits may take time to materialize and fee income remains uneven. BofA maintained Buy ratings on HSBC, NatWest and Lloyds, and Neutral on Barclays, with unchanged price targets.
HSBC: BofA sees the bank well positioned to benefit from higher rates and strong Hong Kong deposit growth. Deposits rose 9–10% in July and August, while loans grew around 8%; wealth management is expected to maintain double-digit growth. However, Hong Kong Stock Exchange trading volumes fell approximately 11% year over year, and southbound flows dropped 30%. An estimated
$2B capital impact from the HTCNS portfolio limits buyback potential, with BofA forecasting a
$1B repurchase versus the
$1.6B consensus.
$HSBC $BAC
