HSBC Announces $2 Billion Share Buyback For Second Half 2017
-- HSBC released second-quarter earnings at noon HK/SIN
-- Market watchers expected the bank, the largest in Europe and Hong Kong, to announce plans to buy back its own shares
By Yen Nee Lee
CNBC
July 31, 2017
HSBC, Europe's largest bank, reported a pre-tax profit of $10.24 billion for the first half of 2017 from the same period a year ago on adjusted revenue of $26.1 billion.
The bank also announced a $2 billion share buyback for the second half of the year.
HSBC was widely expected to announce that it will buy back its own shares at between $1.5 billion to $4 billion in the second half of 2017, market watchers said.
The bank had disappointed markets with just a $1 billion share buyback plan in the first six months of the year, after spending $2.5 billion doing so last year in a bid to wind down its cash stockpile.
"We expect a buyback of $2.5 billion to be announced for 2H17 — a lower figure would be seen as a disappointment we think," Deutsche Bank analysts wrote in a note.
The announcement was expected to come along with an increase in pre-tax profit in the second quarter, helped by better global economic conditions and fewer bad loans.
Alex Wong, director of asset management at Ample Capital, told CNBC he expected a 20 to 25 percent jump in second quarter pre-tax profit.
HSBC shares, a heavyweight on the Hang Seng Index, have risen 23 percent as of Friday's close.
HSBC, Europe's largest bank, reported a pre-tax profit of $10.24 billion for the first half of 2017 from the same period a year ago on adjusted revenue of $26.1 billion.
The bank also announced a $2 billion share buyback for the second half of the year.
HSBC was widely expected to announce that it will buy back its own shares at between $1.5 billion to $4 billion in the second half of 2017, market watchers said.
The bank had disappointed markets with just a $1 billion share buyback plan in the first six months of the year, after spending $2.5 billion doing so last year in a bid to wind down its cash stockpile.
"We expect a buyback of $2.5 billion to be announced for 2H17 — a lower figure would be seen as a disappointment we think," Deutsche Bank analysts wrote in a note.
The announcement was expected to come along with an increase in pre-tax profit in the second quarter, helped by better global economic conditions and fewer bad loans.
Alex Wong, director of asset management at Ample Capital, told CNBC he expected a 20 to 25 percent jump in second quarter pre-tax profit.
HSBC shares, a heavyweight on the Hang Seng Index, have risen 23 percent as of Friday's close.
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