The Motley Fool

Better-Than-Expected Results Boost HSBC Holdings plc

HSBCShares in HSBC (LSE: HSBA) (NYSE: HSBC.US) climbed 2% in early trade this morning, following half-time results that weren’t quite as bad as some City analysts had expected.

Pre-tax profit fell by 12% to US$12.34bn compared with $14.07bn in the comparative period last year, after a 4% decrease in first-half revenue to $31.36bn. Earnings per share slipped slightly to $0.50 from $0.54, while dividends per ordinary share remained unchanged at $0.20.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

HSBC also declared that it is setting aside around $234m for “customer redress programmes”, which is perhaps a more flowery term for the likes of Lloyds‘ “legacy issues”, but mis-selling PPI charges and LIBOR rigging rates all file under the same category, however you name it. The good news for shareholders, though, is that this amount is significantly less than the $412m set aside in H1 2013.

Like most of the UK’s high-street banks, HSBC continues to streamline its operations to make it more efficient and less complex, further strengthening the company’s capital position. As the bank does the majority of its work across Asia, though, investors ought to pay close attention to HSBC’s forecasts for the region as well, and the market was cheered by news that management “have slightly increased our forecasts for mainland China GDP growth in 2014 to 7.5% and expect Hong Kong to benefit from export growth in the second half of the year”.

Group chief executive Stuart Gulliver commented:

“We remain broadly positive about the economic outlook for the majority of our home and priority markets… Whilst regulatory uncertainty persists, our balance sheet remains strong. Our ability to generate capital continues to support our progressive dividend policy. We remain well placed to meet expected future capital requirements, to continue to deliver an attractive total shareholder return and to establish HSBC as the world’s leading international bank.”

 While Lloyds is yet to resume dividend payments following the Financial Crisis, and Barclays the beaten-down bank in the sector right now, HSBC currently offers a yield of over 4.5% to rise above its fellow high-street banks on this valuation.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Sam Robson has no position in any shares mentioned. The Motley Fool has no position in any of the shares mentioned.