(Il Sole 24 Ore Radiocor) - Milano, 5 mag - HSBC confirmed all of its financial targets announced in February, including a RoTE of 17% or better for 2026, 2027 and 2028, excluding notable items.

"The macroeconomic outlook is facing heightened uncertainty, creating volatility in both economic forecasts and financial markets resulting in both tailwinds and headwinds. The group is well-positioned to manage the impacts of these challenges through our high-quality revenue streams, conservative approach to credit risk and strong deposit franchise," it said.

HSBC said it now expects banking NII of around 46 billion dollars in 2026, reflecting an improved interest rate outlook, while recognising the outlook remains volatile and uncertain. It had previously provided banking NII guidance of at least 45 billion dollars for 2026.

The bank now expects an ECL charge as a percentage of average gross loans to be around 45 bps (including held for sale loan balances) for 2026, reflecting ongoing uncertainty in the outlook. The previous ECL guidance for 2026 was around 40 bps of average gross loans (including held for sale loan balances). Over the medium term, the bank retains its planning range of 30-40bps.

HSBC intends to continue to manage the CET1 capital ratio within the medium-term target range of 14%-14.5%.

A decision to recommence buy-backs will be subject to the normal buy-back considerations and process on a quarterly basis.

"The Group is well positioned to manage the changes and uncertainties prevalent within the global environment in which we operate, including in relation to the conflict in the Middle East," it said.

As part of the periodic internal stress testing, HSBC has modelled a range of integrated downside stress scenarios of increasing severity and duration, which include higher oil prices, rising inflation, a material slowdown in GDP, rising unemployment and market disruption.

Under these scenarios, HSBC could expect a mid-to-high single digit percentage adverse impact on pretax profit, which if unmitigated, could bring RoTE excluding notable.

items below our 17% or better target in 2026, it warned.

(RADIOCOR) 05-05-26 08:12:30 (0139) 5 NNNN