HSBC Is as Good as It Gets — For European Investors Anyway
The bank reported stronger returns and billions in buybacks, but questions remain over profit sustainability.
HSBC’s growth hopes are focused on the Greater Bay Area in southern China.
Photographer: Qilai Shen/Bloomberg
HSBC Holdings Plc is almost as good as it gets for investors in European banks in terms of profitability and payouts. But that isn’t guaranteed to satisfy disgruntled Asia-based shareholders, as questions linger over its growth and future returns.
The London-headquartered lender raised profit targets for this year and next while also lifting its revenue guidance after a strong second quarter helped by higher interest rates and trading gains in its markets business. The bank is also buying back another $2 billion of shares after purchasing $2 billion in the first half of the year.