JP Morgan says Hong Kong banks' 1H26 results broadly beat expectations, supported by non-interest income and stronger-than-expected pre-provision operating profit. Small banks still face elevated credit costs; large banks fared better. HSBC, Standard Chartered and Bank of China Hong Kong reported shareholder total‑return metrics slightly below JP Morgan's expectations. JP Morgan sees scope for upward revisions to consensus EPS and notes that firmer market odds of further Fed hikes could help sen

JP Morgan says Hong Kong banks' 1H26 results broadly beat expectations, supported by non-interest income and stronger-than-expected pre-provision operating profit. Small banks still face elevated credit costs; large banks fared better. HSBC, Standard Chartered and Bank of China Hong Kong reported shareholder total‑return metrics slightly below JP Morgan's expectations. JP Morgan sees scope for upward revisions to consensus EPS and notes that firmer market odds of further Fed hikes could help sentiment. The firm remains constructive on the sector, ranking large-cap banks Standard Chartered > HSBC > Bank of China Hong Kong with price targets of HK$310, HK$205 and HK$53.3, all Overweight. JP Morgan's coverage universe posted average 1H26 profit growth of 33% YoY versus 4% in 2025, driven by an ~50% rebound at HSBC/Hang Seng from sharply lower credit costs and improved non-operating items; other banks showed high-single to low-double-digit growth led by resilient pre-provision operating profit.