Goldman Sachs A report noted that HSBC Holdings (00005.HK) announced its fourth-quarter results at noon today, reporting pre-tax profit of $8.6 billion, significantly exceeding Goldman Sachs and market expectations, primarily driven by strong growth in the bank’s net interest income and lower-than-expected provision expenses.Net interest income was driven by rising Hong Kong dollar interbank rates and low sensitivity in savings deposits, while asset quality demonstrated resilience, with credit costs at just 37 basis points and limited provisions related to Hong Kong commercial real estate (CRE). Operating costs were broadly in line with expectations, and the core Tier 1 capital ratio reached 14.9%, exceeding market expectations.The Board announced a total annual dividend of 75 US cents per share, exceeding the market consensus of 72 US cents per share. Goldman Sachs noted that HSBC Holdings has announced new three-year targets: annual revenue growth of 5% through 2028, an annual return on tangible equity (ROTE) of 17% or higher, and a dividend payout ratio maintained at 50% of earnings per share.Looking ahead to 2026, management expects the bank’s net interest income to reach at least $45 billion, credit costs to remain at 40 basis points, operating costs to grow by only 1%, and capital adequacy ratios to remain within the 14% to 15% range.