HSBC likely to see substantial fall in profit
Bank expected to report decline of more than 26pc today, but Hang Seng profit set to soar
HSBC is expected to report a significant decline in pre-tax profit for the second quarter from the same period last year.
Eleven analysts, on average, estimated the bank's pre-tax profit would fall 26.7 per cent to US$6.16 billion, a Bloomberg survey found. The banking giant will post its interim results today after the market closes.
Market participants said they were looking for indications of asset quality health in emerging markets - which showed signs of deterioration at rival Standard Chartered - and progress in cost cutting and revenue generation.
A marked turnaround in its businesses in Europe and North America helped HSBC to post significantly higher results in the first quarter.
Dominic Chan, an analyst at BNP Paribas, said he expected HSBC's business in Europe and North America to perform better in the second quarter than in the same period last year.
The US$700 million provision for money-laundering fines in the US and provisions for mis-selling of wealth management products in Britain and restructuring costs in last year's second quarter would not be repeated this year, Chan said.