Monday, July 31, 2017

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


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.


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