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<Research>JPM Forecasts Negative Stock Reaction to HSBC HOLDINGS USD1.1B Provision for Madoff Fraud Litigation
Recommend 23 Positive 39 Negative 48 |
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HSBC HOLDINGS (00005.HK) announced it would set aside USD1.1 billion in provisions in 3Q25, a move related to the Luxembourg court's ruling on a case involving Herald Fund SPC, a fund that invested into Bernard Madoff's Ponzi scheme, JPMorgan said in its research report. Although this provision is considered a significant special item and will not affect HSBC HOLDINGS' adjusted ROTE or dividends, it will still impact the company's CET1 ratio by around 15 bps, which is expected to spark a negative stock reaction. JPMorgan kept an Overweight rating on HSBC HOLDINGS with a target price of HKD122. Given the aforementioned uncertainties, the broker continued to favor STANCHART (02888.HK) over HSBC HOLDINGS. AAStocks Financial News |
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