Bank of America maintains its 'neutral' recommendation on HSBC, judging that its valuation at a 2026 P/TBV ratio of around 1.4x for a ROTE of around 16% 'seems reasonable', but raises its target price from 1130 to 1160 pence.

The broker considers the British bank's Q3 results to be solid, with underlying taxable profit 9% higher than expected, thanks to higher revenues, while costs and impairments were in line with expectations.

BofA also points to HSBC raising its net banking income target for 2025 to $43bn or more, up from around $42bn previously, and its ROTE forecast to the mid-teens, or higher.