HSBC, Lloyds earnings preview: strategy & dividends

HSBC is due to report on Tuesday 23rd February and Lloyds on Wednesday 24th February. Here's what to watch:

Trader 3


HSBC is due to report on Tuesday 23rd February. 

As with other banks the restarting of dividends will be closely eyed. 

However, this is likely to be overshadowed by the latest strategic update which could reveal a deeper pivot towards 

Asia and the withdrawal from consumer banking in the US.

Whilst additional restructuring costs are expected to be a drag in the near term, the rebound focusing on Asia could well be stronger.

Lloyds reports on 24th February. 

Profits are expected to fall sharply owing to bad loan write offs in the region of £4.7 billion.

Pre-tax profits are expected to drop to £905 million, down from £4.4 billion a year earlier.

The dividend is expected to be reinstated at 1p.

Net Interest Income will also be closely watch as it measures what Lloyds makes from mortgages. This figure could remain pressurized as interest rates remain historically low.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.