JPMorgan released a research report stating that HSBC Holdings (00005) announced its annual results, with expectations of a positive market reaction. This is attributed to the group's fourth-quarter revenue and underlying pre-tax profit surpassing market forecasts by 3% and 9%, respectively. The Common Equity Tier 1 (CET1) ratio stood at 14.9%, also 20 basis points higher than market expectations. JPMorgan anticipates market earnings per share forecasts for HSBC to be revised upwards by mid-to-high single digits. Furthermore, share buybacks may resume earlier than previous guidance of the second quarter of 2026, potentially starting in the first quarter. The firm maintains an "Overweight" rating on HSBC with a target price of HK$165. Additionally, the group updated its guidance for the return on tangible equity (ROTE) to 17% or above for the next three years, exceeding the original mid-teens guidance and market expectations. The group projects revenue growth reaching 5% by 2028, also surpassing expectations from JPMorgan and the market. Regarding asset quality, JPMorgan views the quality of Hong Kong commercial real estate assets as stabilizing, with Stage 2 loans decreasing quarter-on-quarter and Stage 3 loans remaining flat. With improvements in the Hong Kong residential market and provisions and capital coverage for Hong Kong commercial real estate Stage 3 loans reaching 74%, the drag on profits is believed to be gradually diminishing. Concerning the acquisition of Hang Seng Bank (HSNGY.US), the group aims to achieve $900 million in benefits by 2028, including $300 million in cost savings, $200 million in revenue synergies, and $400 million in additional revenue and cost optimization. JPMorgan estimates this move will increase the 2028 ROTE by approximately 40 basis points.