HSBC, Lloyds earnings preview: strategy & dividends

HSBC is due to report on Tuesday 23rd February and Lloyds on Wednesday 24th February. Here's what to watch:

Trader 3

 

HSBC is due to report on Tuesday 23rd February. 

As with other banks the restarting of dividends will be closely eyed. 

However, this is likely to be overshadowed by the latest strategic update which could reveal a deeper pivot towards 

Asia and the withdrawal from consumer banking in the US.

Whilst additional restructuring costs are expected to be a drag in the near term, the rebound focusing on Asia could well be stronger.

Lloyds reports on 24th February. 

Profits are expected to fall sharply owing to bad loan write offs in the region of £4.7 billion.

Pre-tax profits are expected to drop to £905 million, down from £4.4 billion a year earlier.

The dividend is expected to be reinstated at 1p.

Net Interest Income will also be closely watch as it measures what Lloyds makes from mortgages. This figure could remain pressurized as interest rates remain historically low.


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