HSBC, Standard Chartered Q4 Earnings to Reflect Outcomes of Strategic Overhauls

Earnings Preview: Standard Chartered and HSBC

Standard Chartered Plc

• The bank's shares have fallen by 6% since the resignation of Chief Financial Officer Diego De Giorgi, a key figure behind its $1.5 billion cost-cutting program.
• Investors will watch for the impact of his departure on the bank's earnings, particularly the timeline to appoint a permanent CFO.
• The bank is expected to report non-interest income growth, which should have helped expand its profit, while a drop in net interest income was a drag.

Earnings Schedule:

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• Tuesday: Standard Chartered Plc (STAN LN) reports earnings, with a focus on non-interest income growth and the impact of CFO De Giorgi's resignation.
• Wednesday: HSBC Holdings Plc (HSBA LN) reports earnings, with a focus on its multibillion-dollar purchase of a bank stake in Hang Seng Bank Ltd.
• Thursday: Baidu Inc. (BIDU US) reports earnings, with a focus on its plans to spin off its artificial intelligence chip unit in Hong Kong.
• Friday: New World Development Co. Ltd. (17 HK) reports earnings, with a focus on its debt woes and potential plans for Blackstone Inc. to become its single largest shareholder.

Industry Trends:

• Sector-wide earnings growth for 2025 is expected to come from robust non-interest income, as banks lean into wealth management.
• The normalization of HIBOR, the Hong Kong benchmark interbank rate, will also be a tailwind for quarterly earnings.

Key Metrics:

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• HSBC Holdings Plc (HSBA LN): expected to report a 14% to 14.5% CET1 ratio, 3% cost growth, and a return on tangible equity of mid-teens or better.
• Baidu Inc. (BIDU US): expected to report a 4.3% decline in revenue in the fourth quarter, driven by declining growth in the Baidu Core segment.