- Europe’s largest bank, HSBC, reported its full-year 2019 earnings on Tuesday.
HSBCÂ on Tuesday reported 2019 pre-tax profit of $13.35 billion, while revenue during the same period was $56.1 billion.
Prior to the latest earnings release, analysts had expected HSBC’s report card for last year to largely match that of 2018, when reported pre-tax profits were $19.89 billion and revenue was $53.78 billion. Here’s what analysts are expecting from the results, according to Refinitiv:
- Revenue: $54.93 billion
- Pre-tax profit: $19.83 billion
Investors were also watching out for the bank’s outlook and upcoming business strategy, which would be outlined by interim chief executive Noel Quinn.
The London-headquartered bank is a heavyweight component of the Hang Seng Index. The bank derived almost half of its revenue and nearly 90% of its profits from Asia in 2018, with much of that coming from Hong Kong.
In Hong Kong, pro-democracy protests and the ongoing spread of the new coronavirus â now named COVID-19 â will likely hit the bank’s operations, said Wong. HSBC would also face challenges growing outside the city given the continued uncertainties in the global economy, he added.
Such a dimmed outlook means that HSBC shares in Hong Kong could fall following its earnings release, said Wong. The bank’s shares traded 0.84% lower on Tuesday morning.