HSBC and Standard Chartered to continue run of strong UK bank profits
INVESTORS in HSBC and Standard Chartered will this week look to strong economic growth in Asia as analysts predict rising profits for the two FTSE 100 banks.
Other major British banks have already revealed a string of big profits in the first quarter, with the two remaining blue-chip banks still to report focused on emerging markets which have benefited from the increased momentum in global trade.
HSBC, Europes biggest bank by assets, will this week report profits of $5.5bn (£4bn), according to consensus data collected by S&P Global Market Intelligence.
John Flint will on Friday reveal his first quarterly results as chief executive of the bank, after taking up the role in February, with analysts expecting revenues to hit $13.7bn (£9.95bn).
While Flint will have had little opportunity to make his mark on the groups first-quarter earnings, after stepping up from the head of the retail bank, he has already embarked on some changes to the banks structure, creating a single regional private banking arm in Europe.
Meanwhile, Standard Chartered will reveal its first-quarter results on Wednesday, with analysts expecting revenues of $3.95bn, the highest quarterly figure since the second quarter of 2015. The rise in revenues at the emerging markets-focused lender could lead to profits of as much as $1.3bn, also the strongest since 2015.
The lenders will likely be buoyed by beneficial conditions for their investment banking arms. Banks with significant trading activity have benefited from increased volatility in the first quarter, as equity investors rushed to adjust their portfolios.
The volatility has helped the biggest investment banks in the UK and around the world. Barclays was a particular beneficiary, boosting chief executive Jes Staley as he awaits the next move of activist investor Edward Bramson. Barclays will tomorrow hold its annual general meeting. However, Bramson has not tabled any resolutions suggesting a change in strategy for investors to consider.
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