Shares in HBSC Holdings (LON:HSBA) have advanced in today’s session, trading in positive territory ahead of the lender’s full-year results tomorrow. Europe’s biggest bank is expected to unveil a drop in quarterly profits and leave its full-year payout to shareholders flat.
As of 13:19 GMT, HSBC’s share price had gained 0.26 percent to 762.80p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index having fallen into the red and currently standing 0.27 percent lower at 7,275.32 points. The group’s shares have added nearly eight percent to their value over the past year, as compared with a 0.3-percent dip in the Footsie.
HSBC to post results
HSBC is scheduled to post its full-year results tomorrow and Interactive Investors reports that the lender’s fourth quarter underlying pre-tax profit is likely to come in at $3.63 billion, down from $5.44 billion the previous quarter, due to a drop in in revenue at the Global Banking and Markets division and higher costs, as well as higher impairments. The broker also pencils in a flat dividend of 51 US cents for the full-year 2017.
The broker’s analyst David Lock meanwhile has kept his ‘hold’ rating on the shares, pointing to upside risk from higher US rates, an improvement in the emerging markets outlook and lower-than-expected loan losses.
Citigroup remains bullish on HSBC, having reiterated its ‘buy’ rating on the group last week, without specifying a price target on the stock. Goldman Sacks, which has a ‘neutral’ rating on the Asia-focused lender, meanwhile set a valuation of 820o on the shares. According to MarketBeat, Europe’s biggest bank currently has a consensus ‘hold’ rating and an average price target of 756.64p.
HSBC kicks off the FTSE 100 banking results tomorrow, to be followed by Lloyds (LON:LLOY) on Wednesday and Barclays (LON:BARC) and RBS (LON:RBS) on Thursday and Friday, respectively.