HSBC Holdings (HSBC) reports interim results; offers outlook

HSBC Holdings (NYSE: HSBC) reported Interim results for 2024 EPS of $0.68, $0.90 worse than the analyst estimate of $1.58. Revenue for the quarter came in at $37.29 billion versus the consensus estimate of $15.99 billion.

OUTLOOK

We will now target a return on average tangible equity (‘RoTE‘), excluding the impact of notable items, in the mid-teens for both 2024
and 2025.
– Based upon our current forecasts, we expect banking NII of around $43bn in 2024. This guidance remains dependent on the path of interest
rates globally.
– While loan growth was 1% in 1H24, revenue has continued to benefit from elevated interest rates. Over the medium to long term, we
continue to expect mid-single digit year-on-year percentage growth in customer lending.
– We are reiterating our cost growth guidance of approximately 5% for 2024 compared with 2023, on a target basis, and now expect ECL
charges as a percentage of average gross loans in 2024 to be within our medium-term planning range of 30bps to 40bps (including
customer lending balances transferred to held for sale).
– Our guidance reflects our current outlook for the global macroeconomic environment, including customer and financial markets activity. This
includes our modelling of a number of market dependent factors, such as market-implied interest rates (as of mid-July 2024), as well as
customer behaviour and activity levels.
– We intend to manage our CET1 capital ratio within our medium-term target range of 14% to 14.5%, with a dividend payout ratio
target basis of 50% for 2024, which excludes material notable items and related impacts

For earnings history and earnings-related data on HSBC Holdings (HSBC) click here.

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