Broker snap: Growth limited at HSBC

1st Mar 2011 12:00

Nomura keeps a cautious eye on HSBC as revenue growth at the global banking giant has "limited momentum".Analyst Robert Law says that "revenue growth is likely to remain challenged by continued low interest rates, lower Balance Sheet Management (BSM) revenues and the impact of the run-off of non-core positions in HSBC Finance."With BSM revenues for the current year indicated to be around $2.5bn, down from $4.1bn in 2010, the Japanese broker estimates group revenue growth for 2011 of 2-3%.Additionally, with the potential impact from the Basel 3 requirements being more negative than expected, it maintains a 'neutral' stance on HSBC and confirms a target price of 725p.