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HSBC share price: what to expect from its half-year results

Bank earnings are back on the agenda, and with HSBC coming off a strong Q1, can they keep up the pace?

When are the HSBC results due?

HSBC will unveil their half-year results on Monday 5 August.

HSBC results preview: what does the City expect?

HSBC will report its earnings in the wake of a week which is packed full of UK bank figures. With Lloyds, Standard Chartered, Barclays and Royal Bank of Scotland (RBS) all releasing their numbers this week, the market expectations are likely to shift with set of earnings that are seen. For now, Europe’s biggest bank is expected to report $14.18 billion in revenues, with adjusted net income of $4.07 billion. Investors will be keeping a particularly close eye on any update over the potential share buyback scheme which the bank announced last quarter. Investors will also keep a keen eye out for the full-year outlook, at a time where Hong Kong protests and Brexit concerns provide geopolitical concerns in the bank’s main hubs.

Last quarter?

Last quarter the bank provided a notably positive set of results, with profits rising 30.7% and a 5.24% rise in sales. Those impressive numbers saw the bank increase their earnings per share to 21 cents (a 40% increase), while the lender’s return on tangible equity rose 220 basis points (bps) to 10.6%.

HSBC profit after tax came in at $4.9 billion, following a concerted effort to bring operating expenses down (-12%). That decline in costs helped the bank to return to adjusted jaws back into positive territory at 6%. That positive jaws ratio means that revenues outstripped spending.

What do the analysts say?

There are currently 28 analysts covering the stock, with six ‘Buy’, nine ‘Hold’ and 14 ‘Sell’. The current target price of £6.64 is 0.43% below the current £6.67 price.

HSBC share price: technical analysis

HSBC shares have been on the rise since their impressive first-quarter (Q1) numbers, with the bank’s share price hitting the highest level since Q3 2018. However, worries remain, with the recent ascent providing a bearish rising wedge formation. The creation of higher highs and higher lows does help provide a more bullish picture, coupled with a break through trendline resistance. Thus, a bullish outlook remains in play unless we see a break below £6.38 low.

HSBC weekly chart Source: ProRealTime
HSBC weekly chart Source: ProRealTime

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