0652 GMT - HSBC Holdings' proposed sale of its Singapore insurance unit to Germany's Allianz for $2.1 billion looks like a good deal for the London-based banking group, J.P. Morgan analysts write in a research note. The business contributed only 0.2% of HSBC's pretax profit last year and faced potential profitability pressure from competition, the analysts say. A disposal gain of $1.8 billion upon completion is expected to translate into a 4% boost to HSBC's 2027 pretax profit and lift its CET1 ratio by 15 basis points, according to JPM. This could point to room for higher buybacks next year, the analysts say. Moreover, the two parties will enter into a 15-year bancassurance agreement, which should limit disruption to HSBC's Singapore banking services, they add. Hong Kong-listed shares in HSBC fall 1.1%. (adria.calatayud@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 02:53 ET (06:53 GMT)

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