HSBC Building in Canary Wharf, London, UK
Leon Neal | AFP | Getty Images
HSBC said on Tuesday that its reported pre-tax profit for 2020 is down 34% from a year ago to $ 8.8 billion, and announced an interim dividend of 15 cents a share.
The bank’s earnings exceeded analyst expectations of $ 8.3 billion for the entire year, according to estimates from the London-based bank.
Ahead of the earnings announcement, HSBC’s Hong Kong shares are up 3% early Tuesday.
Like many of its industry peers worldwide, HSBC made provisions last year for possible credit losses as a result of the coronavirus pandemic.
In addition to the financial results, investors anticipated the bank’s comments on dividend payments and share buybacks. HSBC closed both activities last year when UK regulators urged lenders to preserve capital.
The Bank of England said in December that British banks could again pay out some dividends. And Barclays announced last week that it would resume such payouts and begin a £ 700 million ($ 985.4 million) share buyback.
Jackson Wong, asset manager at Amber Hill Capital, told CNBC’s “Street Signs Asia” on Tuesday that a dividend per share of between 13 cents and 15 cents from HSBC would be considered “reasonable” by investors.
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