European banks are quietly defying the doubters and Citi believes the run isn't over yet, with HSBC Holdings PLC and NatWest Group PLC its top picks. The sector is up 4% in the year to date, "climbing a wall of worry" that includes ECB rate cuts, tariff uncertainty, and geopolitical concerns.
Investors with an interest in Banks - Foreign stocks have likely encountered both HSBC (HSBC) and Banco Santander-Chile (BSAC). But which of these two stocks offers value investors a better bang for their buck right now?
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HSBC Holdings plc (HSBC) Q4 2025 Earnings Call Transcript
HSBC posts a sharp y/y Q4 profit jump as revenues rise 41% and credit losses fall, while key business lines deliver solid pre-tax growth.
HSBC Holdings PLC received further backing from analysts after a stronger-than-expected fourth quarter and upgraded guidance for 2026, which sent the shares to new highs. Fourth-quarter pre-tax profit excluding notable items beat company consensus by 9%, UBS said, driven by banking net interest income and lower impairments.
HSBC Holdings PLC reported lower headline profits for 2025 but beat forecasts as the bank lifted its targets for medium-term income and returns. Pre-tax profit for the year fell by 7.4% to $29.9 billion, but this was ahead of the average analyst forecast of £28.9 billion.
HSBC Holdings' fourth-quarter net profit rose sharply, driven by higher net interest income and one-off gains from disposals, as the lender continues efforts to streamline its businesses while sharpening its edge in the U.K. and Hong Kong.
Europe's largest lender HSBC on Wednesday reported annual pre-tax profit of $29.91 billion, beating the bank's estimates. The results come close on the heels of HSBC completing the privatization of Hang Seng Bank on Jan. 26.
HSBC's Q4 results may show higher revenues and earnings, with IB, trading and slightly improved interest income offset by higher expenses.
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Max Kettner, chief multi-asset strategist at HSBC, joins 'Money Movers' to discuss market themes, interest rates, and more.