The HSBC Bank Building in Canary Wharf, London, UK
Leon Neal | AFP | Getty Images
HSBC said on Tuesday that its reported profit before tax for 2020 fell 34% year-on-year to US$8.8 billion, and announced an interim dividend of 15 cents per share.
Estimates compiled by the London-headquartered bank showed that the bank’s full-year profit last year exceeded analysts’ expectations of $8.3 billion.
Before the earnings report, HSBC̵
Like many peers around the world, HSBC last year established a reserve for potential loan losses due to the coronavirus pandemic.
In addition to financial performance, investors are also looking forward to the bank’s comments on dividend payments and stock repurchases. Last year, HSBC stopped these two activities as British regulators urged lenders to save capital.
The Bank of England said in December that the Bank of England could resume paying some dividends. Last week, Barclays Bank announced that it would resume such spending and embarked on a 700 million pounds (985.4 million US dollars) share repurchase.
Jackson Wong, director of asset management at Amber Hill Capital, told CNBC’s “Asian Street Sign” on Tuesday that investors believe that the dividend per share from HSBC is “reasonable” between 13 cents and 15 cents.
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