PremierLeague-News.Com HSBC outlook and dividends disappoint Breaking news

PremierLeague-News.Com - Despite posting a better-than-expected performance in the fourth quarter of last year and signalling a return to dividend payments, the UK’s largest bank by market value HSBC (HSBA) still saw its shares fall 2% to 422p in early trade.

PremierLeague-News.Com HSBC outlook and dividends disappoint Breaking news

PremierLeague-News.Com - Despite posting a better-than-expected performance in the fourth quarter of last year and signalling a return to dividend payments, the UK’s largest bank by market value HSBC (HSBA) still saw its shares fall 2% to 422p in early trade.

PremierLeague-News.Com  HSBC outlook and dividends disappoint Breaking news
23 February 2021 - 10:15

PremierLeague-News.Com - Breaking Sport Transfer News ! Despite posting a better-than-expected performance in the fourth quarter of last year and signalling a return to dividend payments, the UK’s largest bank by market value HSBC (HSBA) still saw its shares fall 2% to 422p in early trade. Pre-tax profits for the year were down 34% to $8.8 billion, impacted by the twin effects of a 10% fall in revenues due to continued low interest rates and a large hike in provisions for potential credit losses due to the pandemic. On a positive note, the bank swung to a net profit of $562 million in the fourth quarter against losses of $5.5 billion the previous year and expectations of a $115 million net loss. The Global Banking and Markets business performed ‘particularly well’, according to chairman Mark Tucker, while Asia was once again ‘the most profitable region by far’ as China exited the pandemic early and its economy staged an impressive recovery.

News source = PremierLeague-News.Com

. However, there was no detail on what it had planned for its sub-scale US operation or its French business, which has been on the block for some time. Also, the persistent low interest rate environment led the bank to abandon its target of a return on tangible equity (ROTE) of between 10% and 12% by the end of next year. Instead, it said it would seek to achieve a return of ‘greater than or equal to 10% in the medium term’. Even the dividend was underwhelming, with the interim payment set at just 15c per share compared with a pre-pandemic level of 50c per share and no buybacks to bump up the total shareholder return. The bank will also stop offering a scrip dividend option for those who would rather receive shares instead of cash. READ MORE ABOUT HSBC HERE

Source = PremierLeague-News.Com

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