Proactive Investors - HSBC (LON:HSBA) should have got a lift from the bullish outlook of its Asia-focused, UK-rival Standard Chartered (LON:STAN), which indicated the critical Chinese market was recovering rapidly from its Covid problems.
UK/US rate hikes and low deposit betas (people switching accounts) should also give HSBC a boost when it reports next week, according to analysts at Barclays (LON:BARC), tempered by weaker margins in Hong Kong and property uncertainty in China.
“China’s reopening is happening faster, albeit potentially also in a more disorderly fashion than anticipated; nonetheless this should be supportive for HK activity levels into 2023, most notably Wealth Management, and may help to limit downside risks from property in China."
This banking season has not been short of big handouts and Barclays expects HSBC to unveil more of the same.
Indeed, the bank predicts HSBC has the capacity to pay out around 35% of its current £124bn market value by 2025.
Elsewhere, HSBC has been in the firing line for its continued lending to oil, gas and coal projects and this topic will likely feature in its statements, with how much it makes from its fossil fuel business being something to watch for given the current ESG-aware mood.
Otherwise, Barclays predicts HSBC to post fourth-quarter underlying profits of US$6.5bn and US$23.6bn for the full year
Shares were 619p today, up 40% in the past three months.