HSBC building in the Canary Wharf district of London, UK
Leon Neal | AFP | Getty Images
HSBC said on Tuesday that its 2020 pre-tax profit fell 34% from a year earlier, to $ 8.8 billion, and declared a provisional 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 compiled by the London-based bank.
Before the results were released, HSBC’s shares in Hong Kong jumped 3% in Tuesday’s trading.
Like many of its peers worldwide, HSBC last year accumulated provisions for potential loan losses as a result of the coronavirus pandemic.
In addition to the financial results, investors were anticipating the bank’s comments on dividend payments and share buybacks. HSBC suspended both activities last year, while British regulators urged creditors to retain capital.
The Bank of England said in December that British banks may resume paying some dividends. And Barclays announced last week that it would resume these payments and embark on a 700 million pound ($ 985.4 million) share buyback.
Jackson Wong, director of asset management at Amber Hill Capital, told CNBC’s “Street Signs Asia” on Tuesday that a dividend per share between HSBC’s 13 cents and 15 cents would be considered “reasonable” by investors.
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