HSBC Holdings plc Feedback from Conference Call

Following HSBC's conference call, we highlight key areas of feedback: 1) Time deposits represent 38% of HK deposits, compared to peak levels of c40% during the last rate cycle, implying further migration may still come, with deposit pricing pressure also visible; 2) Deposit pressure in the UK is also being seen in time deposits, although the Group has been more flexible given strong liquidity; 3) 3-4% interest rates represent the sweet spot, with NII accretion slowing above this range. Management reminded the market of the impact of disposals, of which c50% of the $2.2bn revenue loss will feed into NII by 2028E, while cost redeployment is expected to drive higher revenues with a lag. We had expected low-single-digit EPS downgrades to consensus for FY26-28E;