HSBC building in the Canary Wharf area of London, UK
Leon Neal | AFP | Getty Images
HSBC is expected to announce its 2020 financial results on Tuesday. During this time, the bank is expected to inform investors of its restructuring plans and whether it will resume dividend payments.
Like many of its colleagues around the world, HSBC made provisions last year for potential credit losses as a result of the coronavirus pandemic.
Reported pre-tax profit for the London-based bank for the full year 2020 is expected to decrease 37.6% year over year to $ 8.3 billion, the bank estimates by analysts.
Ahead of the earnings release, Hong Kong HSBC shares rose 2% at the start of trading Tuesday.
In addition to financial results, investors will be paying attention to the bank’s comments on dividend payments and share buybacks. HSBC shut down both activities last year when UK regulators asked lenders to save capital.
In its earnings release for the third quarter, the bank had announced that it would pay a “conservative dividend” if circumstances permit. It said a decision would be made and communicated when the full 2020 financial results were released.
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.
His forecast corresponds to the analyst estimates made by HSBC, which indicated a dividend per share of 13 cents for 2020.
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