Home / NEWS / World News / HSBC beats estimates with $8.8 billion in pre-tax profit for 2020; resumes dividend payment

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

HSBC structure in the Canary Wharf district of London, U.K.

Leon Neal | AFP | Getty Images

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

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

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

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

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

The Bank of England in December said British banks can resume paying some dividends. And Barclays termination week announced it would resume such payouts and embark on a 700 million pounds ($985.4 million) split buyback.

Jackson Wong, asset management director at Amber Hill Capital, told CNBC’s “Street Traces Asia” on Tuesday that a dividend per share of between 13 cents and 15 cents from HSBC inclination be considered “reasonable” by investors.

This is breaking news. Please check back for updates.

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

Check Also

China proposes changes to Hong Kong’s electoral system

The ebb of Hong Kong flies from a ferry boat on July 2, 1997, a …

Leave a Reply

Your email address will not be published. Required fields are marked *