HSBC beats estimates with $8.8 billion in pre-tax profit for 2020; resumes dividend payment

  • HSBC said its reported profit before tax for 2020 fell 34% from a year ago to $8.8 billion, and declared an interim dividend of 15 cents per share.
  • The London-headquartered bank's reported profit before tax for the whole of 2020 is forecast to fall 37.6% on year to $8.3 billion, according to analyst estimates compiled by the bank.

HSBC on Tuesday said its reported profit before tax for 2020 fell 34% from a year ago to $8.8 billion, and declared an interim dividend of 15 cents per share.

The bank's profit beat analyst expectations of $8.3 billion for the whole of last year, according to estimates compiled by the London-headquartered bank.

Ahead of the earnings release, HSBC shares in Hong Kong jumped 3% in early Tuesday trade.

Like many of its peers globally, HSBC last year built up provisions for potential loan losses as a result of the coronavirus pandemic.

Zoom In IconArrows pointing outwards

Beyond the financial results, investors had been anticipating the bank's comments on dividend payments and share buybacks. HSBC halted both those activities last year as British regulators urged lenders to conserve capital.

The Bank of England in December said British banks can resume paying some dividends. And Barclays last week announced it would resume such payouts and embark on a 700 million pounds ($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 cents and 15 cents from HSBC would be considered "reasonable" by investors.

This is breaking news. Please check back for updates.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Source: Read Full Article