Commerzbank is advising investors with shares in HSBC Bank to reduce their holdings at the moment, suggesting the share price is set for a fall. Following a review of its half-year results, the broker highlights the lack of growth catalysts and doubts over the sustainability of revenue streams as among the key factors likely to drag the share price lower.

The stock has been trading at around £8.40 sterling (13.27) but Commerzbank has set a target of £7.63, advising investors to sell the stock.

HSBC's profits at the half-year stage were down 6 per cent, with revenues flat in its core markets. More critically, its operating expenses remain at high levels and show little sign of abating. The markets were somewhat reassured that bad debt charges had not escalated but Commerzbank is continuing to focus on the deteriorating outlook for the bank.