HSBC eyes restarting dividend as third-quarter profit beats estimates on strength of Asian business, slower loan losses

Name: Coronavirus: How close is Hong Kong to a fourth wave of Covid-19?
Uploaded: 2020-10-27T04:29:32.000Z
Duration: 4 min 35 s
Description: Coronavirus: How close is Hong Kong to a fourth wave of Covid-19?

HSBC cancelled its final dividend for 2019 and suspended payments this year at request of UK regulator

Pre-tax profit was US$3.07 billion, above a consensus estimate of US$2.07 billion

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HSBC’s iconic lion sculptures, known as Stephen and Stitt (above), returned to public view at HSBC”s main building in Hong Kong last week after being under wraps for more than nine months in what has been a challenging period for the bank. Photo: Felix Wong

Chad Bray

Published: 12:29pm, 27 Oct 2020Updated: 11:30pm, 27 Oct 2020

HSBC, the biggest of Hong Kong’s currency-issuing banks, said on Tuesday it may pay a “conservative” dividend for the full-year 2020 after it reported a better-than-expected third-quarter profit as it benefited from a resilient performance from its Asian operations and set aside less money for soured loans.

The bank’s top executives said they were encouraged by its performance so far this year and the improving economic outlook into 2021, but would reassess based on economic conditions in early 2021 and discussions with its regulators before restarting payouts to investors.

“We are more optimistic than when we last spoke,” Noel Quinn, the HSBC chief executive, said on a call with analysts on Tuesday. “Economic forecasts are looking brighter, particularly in Asia. As you can see from our Q3 results, expected credit losses have stabilised.”

In April, the bank, Europe’s biggest by assets, cancelled its final dividend for 2019 and suspended dividend payments this year at the request of its chief regulator in the United Kingdom, sparking a rebellion among its Hong Kong shareholder base .

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The news sent HSBC shares in Hong Kong to their highest level since late August.

HSBC shares lost more than 44 per cent of their value this year following the cancellation of its dividend and growing concerns among investors about how deteriorating relations between Washington and Beijing could weigh on the bank’s bottom line. The bank’s shares closed 4.8 per cent higher at HK$33.80 in Hong Kong on Tuesday.

HSBC eyes restarting dividend as third-quarter profit beats estimates on strength of Asian business, slower loan losses

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} HSBC cancelled its final dividend for 2019 and suspended payments this year at request of UK regulator Pre-tax profit was US$3.07 billion, above a consensus estimate of US$2.07 billion

HSBC cancelled its final dividend for 2019 and suspended payments this year at request of UK regulator

Pre-tax profit was US$3.07 billion, above a consensus estimate of US$2.07 billion