HSBC and Standard Chartered Bank are expected to post bumper profits this week when they kick off the reporting season among Hong Kong’s banks, as demand for wealth management buttressed their income against thinning interest-rate margins.
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HSBC may report a 7 per cent increase in its 2024 profit to US$24.09 billion when it reports its full-year results on Wednesday,, according to Bloomberg’s consensus analyst estimates. This is the first set of full-year results with Georges Elhedery at the helm as HSBC’s CEO.
Standard Chartered’s 2024 profit may jump 22 per cent to US$4.23 billion, according to forecasts. The bank reports on Friday .
“Standard Chartered’s operating performance last year was broadly similar to HSBC”, said Kenny Ng Lai-yin, a strategist at Everbright Securities International in Hong Kong. “Standard Chartered outperformed HSBC in net interest income, recording year-on-year growth in revenue during the first three quarters of last year. This gave Standard Chartered a stronger growth momentum compared to HSBC.”
Standard Chartered’s 2024 pre-tax profit may have grown by 18 per cent, while HSBC’s pre-tax income may have increased by 5 per cent, Ng said.
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Both banks are expected to buy back their shares from the market, maintaining last year’s budget when HSBC spent US$2 billion, while Standard Chartered poured US$1 billion into buy-backs, analysts said.