HSBC Continues To Expect Net Interest Income In FY23 To Be Above $35B; Targets Return On Average Tangible Equity In The Mid-Teens For 2023 And 2024
Portfolio Pulse from Benzinga Newsdesk
HSBC has announced that it expects its net interest income in FY23 to be above $35 billion. The bank has been managing its exposure to the changing interest rate environment, incurring disposal losses of $0.6 billion in 3Q23 due to repositioning and risk management activities. These actions are expected to continue into 4Q23, with further losses of approximately $0.4 billion. However, these losses are already recognized in equity and do not materially impact HSBC's CET1 capital.
October 30, 2023 | 5:26 am
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POSITIVE IMPACT
HSBC's proactive management of its exposure to the changing interest rate environment is expected to result in a net interest income above $35 billion in FY23. Despite disposal losses, these are already accounted for in equity and do not impact the bank's CET1 capital.
HSBC's announcement of expected net interest income above $35 billion in FY23 indicates a positive financial outlook. The bank's proactive risk management, despite resulting in disposal losses, does not impact its CET1 capital, suggesting strong financial health. This news is likely to instill investor confidence and could positively impact HSBC's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100