Hsbc in London at all-time high, improves target and pushes up banks in Europe

(Il Sole 24 Ore Radiocor) - A 2025 in the red but a better-than-expected quarter leading to improved guidance and a reorganisation that is proceeding apace are the key elements pushing Hsbc to all-time highs in London: the shares gained more than 5% to 1359 pence, after a top at 1363 and pushing the purchases on the entire European banking sector (+1.6% the sector's Eurostoxx). In Hong Kong, shares gained 5.47%. Also in London, St James Place rose over 5%.

Another positive comes from Spain's Santander, which aims to achieve by 2028 a net profit of EUR 20 billion, a 20% higher RoTE and to more than double its cash dividend. In Madrid, shares rose by 2%, Bbva and Banco Sabadell also went up by more than 1%. In Piazza Affari, the Finecobank is at the top, but also Mediobanca and Banca Mps , while expectations are rising for Siena's board meeting on 26 February, which will have to decide on the share swaps for the merger of Mediobanca into the parent company. The plan will be presented by CEO Luigi Lovaglio to the market on Friday morning. Increases in the order of 1% for the other banks.

Returning to Hsbc, 2025 ended with a net profit of $21.1bn, down 8% from $22.9bn a year earlier. In the fourth quarter, net profit rose to $4.72bn, up from $197m a year earlier, beating market expectations. The bank will reach its cost reduction target of $1.5bn by the first half of this year, ahead of the previous target of end-2026. For CEO Georges Elhedery, who took office in autumn 2024 and is behind the group's reorganisation, the goal is to make Hsbc a 'simpler, more agile and more focused' bank. For Jefferies analysts, Hsbc reported a better-than-expected quarter thanks to strong net interest income and wealth management, which led it to provide higher-than-consensus guidance. Results were also positive for Citi analysts, who called the strategic update 'reassuring'.