HSBC, Standard Chartered Supported by Higher Rates, Asian Wealth

Dow Jones
10/08

1200 GMT - HSBC and Standard Chartered both have continuing momentum heading into their third-quarter results, helped by the higher rate environment and growth in Asia, J.P. Morgan analysts write. JPM raises HSBC's 2027 earnings per share estimate by 1%, but makes limited changes to its estimate for Standard Chartered, with slightly higher net interest income offset by higher costs. Neither bank has seen an impact from China's regulatory changes, which include tighter scrutiny of cross-border capital flows, and both are exposed to structural growth from Asia's expanding private wealth pool, according to JPM. Higher U.S. yields could limit HSBC's share buyback to $1 billion for the third quarter. JPM maintains its preference for Standard Chartered over HSBC. Standard Chartered shares are down 2.65%, while HSBC falls 2.4%.

 

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