Improved outlook for operating environment promises to add lustre to first-half
HSBC Holdings should post a healthy increase in interim profits, helped by a first half that offered a markedly better operating environment than the first six months of 1994.
'I think the first half will be very strong,' said Baring Securities' Carmel Wellso, who is expecting a 17.9 per cent rise in attributable earnings to GBP1.1 billion (about HK$13.6 billion).
Last year, the bank's securities trading was hit by a sudden turnaround in the market after the US Federal Reserve embarked on the first of a series of interest rate rises.
This year dealing profits might be flat but would be a turnaround from last year's loss, Ms Wellso said.
HSBC Holdings' foreign exchange operations had also reportedly returned a good result over the period, she said.
Brokers Vickers Ballas said: 'Stability in global capital markets points to higher dealing profits at Midland Bank this year, albeit the corporate loan market in the UK remains competitive.' Vickers Ballas expected the bank to report that its operating earnings had rebounded with the help of more buoyant loan growth in Hong Kong, coupled with revived trading activities after last year's lower dealing profits.