{"id":59078,"date":"2026-02-25T01:08:34","date_gmt":"2026-02-25T05:08:34","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/hsbc-surpasses-estimates-amid-property-headwinds-hong-kong-trims-civil-service-to-curb-deficit\/59078\/"},"modified":"2026-02-25T01:08:34","modified_gmt":"2026-02-25T05:08:34","slug":"hsbc-surpasses-estimates-amid-property-headwinds-hong-kong-trims-civil-service-to-curb-deficit","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/hsbc-surpasses-estimates-amid-property-headwinds-hong-kong-trims-civil-service-to-curb-deficit\/59078\/","title":{"rendered":"HSBC Surpasses Estimates Amid Property Headwinds; Hong Kong Trims Civil Service to Curb Deficit"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>HSBC (<a href=\"\/stock\/HSBC\">HSBC<\/a>) reported a 2025 pre-tax profit of $29.9 billion<\/strong>, beating analyst estimates of <strong>$28.86 billion<\/strong> despite a <strong>7% year-on-year decline<\/strong>.<\/li>\n<li><strong>Hong Kong plans to eliminate 10,000 civil service positions<\/strong> via a <strong>2% annual reduction<\/strong> over the next two years to address a persistent fiscal deficit.<\/li>\n<li><strong>BTIG lowered its price target for MercadoLibre (<a href=\"\/stock\/MELI\">MELI<\/a>) to $2,650<\/strong>, down from $2,750, while maintaining a positive long-term outlook on the Latin American e-commerce leader.<\/li>\n<li><strong>Former Norwegian PM Thorbj\u00f8rn Jagland was hospitalized<\/strong> following intense scrutiny and &quot;gross corruption&quot; charges linked to the disclosure of the <strong>Jeffrey Epstein files<\/strong>.<\/li>\n<li><strong>Wellington Mayor Andrew Little performed a public swim<\/strong> to signal the safety of local waters following a catastrophic <strong>70 million-liter sewage leak<\/strong> at the Moa Point treatment plant.<\/li>\n<\/ul>\n<p>HSBC Holdings (<a href=\"\/stock\/HSBC\">HSBC<\/a>) posted a <strong>$29.9 billion pre-tax profit<\/strong> for the full year 2025, a result that surpassed market expectations despite a <strong>7% drop<\/strong> from the previous year\u2019s <strong>$32.3 billion<\/strong>. The banking giant\u2019s performance was bolstered by a strong wealth management division, which helped offset <strong>$1.1 billion in provisions<\/strong> related to long-standing <strong>Madoff fraud lawsuits<\/strong> and rising bad debt from the <strong>troubled Hong Kong commercial property market<\/strong>.<\/p>\n<p>CEO <strong>Georges Elhedery<\/strong> emphasized a shift toward a &quot;simpler, more agile&quot; structure, targeting a <strong>17% return on tangible equity<\/strong> for the 2026\u20132028 period. <em>Investors reacted to the beat with cautious optimism, even as the bank suspended share buybacks for three quarters following its $14 billion acquisition of Hang Seng Bank.<\/em><\/p>\n<p>In a move to restore fiscal discipline, the <strong>Hong Kong government<\/strong> announced a plan to reduce its civil service establishment by <strong>2% annually<\/strong> over the next two financial years. Financial Secretary <strong>Paul Chan<\/strong> outlined the measure in the 2025-26 Budget, aiming to delete approximately <strong>10,000 posts<\/strong> by April 2027 to help rein in a deficit estimated at <strong>HK$87.2 billion<\/strong>.<\/p>\n<p>The reduction is part of a broader <strong>7% cut in government expenditure<\/strong> intended to create a sustainable fiscal foundation. <em>Officials stated that public service levels would be maintained through increased digital transformation and the streamlining of bureaucratic procedures.<\/em><\/p>\n<p><strong>BTIG<\/strong> adjusted its valuation for <strong>MercadoLibre (<a href=\"\/stock\/MELI\">MELI<\/a>)<\/strong>, cutting the price target to <strong>$2,650<\/strong> from a previous <strong>$2,750<\/strong>. Despite the reduction, the firm remains bullish on the company\u2019s dominant position in the Latin American e-commerce and fintech sectors. <em>Analysts noted that the adjustment reflects a recalibration of growth expectations amid shifting regional economic conditions.<\/em><\/p>\n<p>In European political news, former Norwegian Prime Minister <strong>Thorbj\u00f8rn Jagland<\/strong> has been admitted to the hospital due to stress-related complications following the release of the <strong>Epstein files<\/strong>. Jagland faces allegations of <strong>&quot;gross corruption&quot;<\/strong> involving undisclosed stays at Jeffrey Epstein\u2019s properties in Paris and New York. <em>The Norwegian economic crime authority, \u00d8kokrim, has already conducted searches of Jagland\u2019s residences as part of a wider investigation into the nation&#39;s political elite.<\/em><\/p>\n<p>In New Zealand, Wellington Mayor <strong>Andrew Little<\/strong> dived into the ocean at Island Bay to reassure the public after a massive infrastructure failure. A breakdown at the <strong>Moa Point wastewater treatment plant<\/strong> earlier this month resulted in <strong>70 million liters of raw sewage<\/strong> flowing into the Cook Strait. <em>While the mayor insisted monitoring results show low risk, residents remain vocal about the &quot;environmental disaster&quot; and the brown residue reportedly coating coastal homes.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways HSBC (HSBC) reported a 2025 pre-tax profit of $29.9 billion, beating analyst estimates of $28.86 billion despite a 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