Nomura removes negative bias into HSBC Holdings 2Q results

Adopting a better outlook for 2H14 instead.

In line with new consensus highlighting sufficiently low expectations, Nomura has noted that it is removing negative bias into 2Q results and instead look to be optimistic about 2H14 revenue outlook for HSBC Holdings.

According to a research note from Nomura, STAN is better exposed to this trend. Meanwhile, it also noted that it received the HSBC company-compiled consensus estimates.

The report said that 2014 earnings expectations have come down substantially post 1Q results with revenues and pre-provision profits falling by cGBP 1bn and Clean PBT falling by cGBP 400m.

More importantly, Nomura said that it is no longer below consensus on its 2Q or 2014 expectations.

Here's more from Nomura:

We are broadly in line on revenues, costs and impairments.

BoCom drives a modest difference between consensus estimates and our expectations, but we do not expect this to drive the stock in itself without a revenue miss, which we were hitherto expecting.

With our last note, we had recommended a negative bias into 2Q results, but expressed optimism on the 2H revenue outlook for Asia as well as Europe.

With consensus looking much more measured, we remove this negative bias into 2Q results and instead would be positive on the name out of 2Q results as we look into 2H14.

Our previous note discusses the reasons for this optimism in detail.