HSBC Holdings (LON:HSBA) is expected to report ‘reassuring’ first-quarter results on May 4, with the update to come amid an ongoing restructuring for the bank. Earlier this month, it emerged that the Asia-focused lender was consolidating its private banking units in Europe into a single structure. The move comes with the bank’s new chief executive John Flint and Chairman Mark Tucker further mulling over shrinking the bank’s global footprint.
JPMorgan expects first-quarter numbers to reassure
JPMorgan told clients in the run-up of the FTSE 100 group’s first-quarter results early next month that the recent pullback in HSBC’s share price, as well as in the stock of blue-chip peer StanChart was ‘an opportunity to add,’ WebFG News reports. After meeting with StanChart and three days spent with HSBC’s management, the investment bank concluded that the ‘risk-reward’ in shares of both Asia-focused lenders was ‘positive,’ adding that it expected their first-quarter numbers to reassure.
Reuters in turn quoted Credit Suisse as commenting last week that while it expects HSBC’s first-quarter update to be reassuring, no buyback announcement is expected.
Deutsche Bank trims target on lender
Deutsche Bank meanwhile lowered its price target on HSBC ahead of the group’s results from 700p to 680p. Proactive Investors quoted the German bank as noting that while it expected currency factors to have benefited US dollar revenues at internationally-focused lenders in the first-quarter, they were nevertheless wary of cost inflation at both HSBC and StanChart.
The results will come after Europe’s biggest bank reported that its profit for 2017 had soared 141 percent to $17.2 billion, with the group’s ‘Pivot to Asia’ strategy generating returns and driving over 75 percent of reported and adjusted profit. Reported revenue meanwhile rose seven percent to $51.4 billion.