HSBC beat estimates for 2020

By: Miguel A. Rodriguez

18:34, 25 February 2021

After topping the 2020 earnings consensus, HSBC will pay interim dividends

Europe’s largest bank by assets reported earnings for 2020, and the results came in higher-than-expected.

For the past year, the bank announced a profit before tax of $8.78 billion, which topped the $8.33 billion consensus. However, compared to 2019 figures, the numbers fell 34%. Also, revenue for 2020 was 10% lower than what it reported in 2019, the figures coming in at $50.43 billion.

For the future, HSBC announced its plan of paying 15 cents per share interim dividends – the first payout since Q3 2019. Starting in 2022, HSBC considers a target payout ratio of 40%-55% of reported EPS. “We will consider share buy-backs, over time and not in the near term, where no immediate opportunity for capital redeployment exists. We will also no longer offer a scrip dividend option, and will pay dividends entirely in cash,” stated Noel Quinn, the bank’s CEO.

Moreover, HSBC is reconsidering its business strategy, as it announced multiple changes to senior executive roles, and it would focus on Asia – which is responsible for most of its revenues.

Following the news, during the Hong Kong trading hours, HSBC stock price added 5%.


Share this article

This information prepared by is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.