HSBC has been steadily closing UK bank branches. It shut 114 more in November. It has also exited the US mass market business and the French retail sector.
Some City analysts say the bank needs a large share buyback programme, which should perhaps be unveiled in 2024.
Richard Hunter at interactive investor said: “For a bank of HSBC’s size, the challenges of the transformation cannot be underestimated. Equally, there are economic difficulties arising in many of its main markets, while geopolitical tensions remain a concern in the Asian region. By the same token, however, should the expected Chinese economic recovery gain full traction this year, HSBC would be a clear beneficiary.”
HSBC shares today rose 9p to 613p, at which price the business is worth £122 billion. Over five years, the stock is down 15%.
In a note to clients, Shore Capital said it thinks the shares are worth 735p.
Rob Murphy at Edison Group said: “Management has stepped up its capital return policy following these results and perhaps also in response to pressure from Ping An to split the bank rather than continue its capital re-allocation strategy towards Asia. In a move that will undoubtedly prove popular to investors in Hong Kong, HSBC has confirmed that it would resume paying quarterly dividends at the start of this year and also announced a 50% payout policy going forward. “
He added: “HSBC is making a strong effort to demonstrate its strategy is working and literally paying dividends to shareholders.”
