HSBC shares hit 20-year high ahead of results
HSBC’s share price rallied to a 20-year record on Tuesday morning, hitting pre-financial crisis highs.
The FTSE 100 lender is due to post its annual results tomorrow morning, which will mark its first set of results with Georges Elhedery at the helm.
The bank’s stock jumped to 894.70 following the market opening, marking its highest price since 2001.
The bank is slated to report earnings on Wednesday. According to Bloomberg, analysts have pencilled in earnings of £25.2bn for 2024, up from £24.1bn in 2023.
Jobs cuts expected this week
Bloomberg reports that job cuts at the lender’s investment banking arm are expected to begin this week.
Elhedery took over from previous group chief Noel Quinn in September, and his re-organisation plans are expected to save the group £1.2bn.
According to the Financial Times, the full extent of the cuts is expected to be revealed on Wednesday.
HSBC’s earnings follow those of Barclays and Natwest, both of which reported their 2024 results last week.
Interactive investors’ head of markets Richard Hunter said: “The story so far for Barclays and Natwest has been one of strong results but a muted market reaction, partly in response to both shares having doubled over the last year and therefore being subject to higher expectations.
“Gains in the share prices at the three remaining banks have also been notable over the last year, with HSBC having added 38 per cent, Lloyds 46 per cent and Standard 89 per cent, thus making them susceptible to a similar reception.
“For the index as a whole, a nudge ahead at the open has left the FTSE 100 ahead by 7.4 per cent in the year to date, having continuously tested record highs along the way over the last month.”