HSBC Beats Estimates With Pre-Tax Profits of $ 8.8 billion for 2020; resumes dividend payment
HSBC building in the Canary Wharf area of London, UK
Leon Neal | AFP | Getty Images
HSBC announced Tuesday that reported pre-tax earnings for 2020 were down 34% year over year to $ 8.8 billion and declared an interim dividend of 15 cents per share.
The bank’s profit exceeded analysts’ expectations of $ 8.3 billion for the whole of last year, according to estimates by the London-based bank.
Ahead of the earnings release, Hong Kong HSBC shares rose 3% at the start of trading Tuesday.
Like many of its colleagues around the world, HSBC made provisions last year for potential credit losses as a result of the coronavirus pandemic.
Beyond financial results, investors had anticipated the bank’s comments on dividend payments and share buybacks. HSBC halted both activities last year when UK regulators asked lenders to save capital.
The Bank of England said in December that UK banks will be able to pay some dividends again. And Barclays announced last week it would resume such payouts and embark on a £ 700 million ($ 985.4 million) share buyback.
Jackson Wong, asset management director at Amber Hill Capital, told CNBC’s Street Signs Asia on Tuesday that a dividend per share of between 13 and 15 cents from HSBC would be considered “reasonable” by investors.
This is the latest news. Please try again.
Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.