0827 GMT - HSBC and Standard Chartered's earnings and valuations could be affected by the impact of U.S. growth risk on the rate outlook, despite their share gains, JPMorgan says in a research note. Analysts see pressure on the banks' return-on-tangible-equity ratios in a stress scenario of steeper rate cuts, lower fee income and higher credit costs. "If the market were to price in a higher probability of the stress scenario, this would weigh on the share price performances of HSBC/STAN, even if they continue to deliver on earnings," they write. HSBC should outperform StanChart and local Hong Kong banks in a scenario of rising growth risk due to a higher total return, but may underperform China's state-owned banks. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

March 24, 2025 04:27 ET (08:27 GMT)

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