NET INCOME EXPECTATIONS
HSBC Holdings is set to release its fourth quarter results with analysts predicting a net income of $2.94 billion, a decrease from $4.62 billion in the same period last year. The bank’s pretax profit is anticipated to drop to $4.75 billion from $5.21 billion in Q4 of the previous year.
NET INTEREST INCOME OUTLOOK
Analysts forecast that HSBC’s net interest income will slightly decline to $9.11 billion compared to $9.58 billion in the year-ago quarter.
STOCK PERFORMANCE
While HSBC’s London-listed shares fell 1.5% in the fourth quarter, they have seen a 0.4% increase since the beginning of this year. Recent developments in China’s stock market have contributed to the rise in HSBC’s shares.
WHAT TO KEEP AN EYE ON:
2024 Industry Outlook
Keefe, Bruyette & Woods predicts a challenging year ahead for U.K. banks as interest rate benefits are expected to diminish. Investors will closely monitor HSBC’s Net Interest Margin (NIM) outlook for 2024 and anticipate improvements in activity levels amidst a lower rate environment.
DIVESTMENT & CAPITAL RETURNS
Following Canada’s approval of Royal Bank of Canada’s acquisition of HSBC’s Canadian unit, CEO Noel Quinn mentioned a potential special dividend in 2024 post-sale completion. Analysts at JPMorgan forecast a $10.5 billion share buyback scheme and a $0.21 special dividend in the second quarter. Shareholders eagerly await updates on the deal progress and capital return plans.
