STOCKS | JPMorgan Sees Upside in Hong Kong Banks After Strong First-Half Results

According to Jin10, JPMorgan said Hong Kong banks' first-half 2026 results were broadly better than expected, supported mainly by non-net interest income and more resilient-than-expected pre-provision operating profit momentum. It said credit costs at small and mid-sized banks remained high, while conditions were better at large banks, and that HSBC Holdings, Standard Chartered, and Bank of China (Hong Kong) all posted shareholder total return metrics slightly below expectations. JPMorgan kept a positive view on the sector, said market forecasts still have room for upward revisions to earnings per share, and set target prices of HK$310 for Standard Chartered, HK$205 for HSBC Holdings, and HK$53.3 for Bank of China (Hong Kong), with all three rated Overweight. The report said the banks it covers in Hong Kong posted average first-half 2026 profit growth of 33% year on year, sharply better than the 4% growth for full-year 2025, mainly helped by about a 50% rebound in HSBC and Hang Seng Bank profits.