What can you expect from HSBC Stock?

HSBC shares (New York Stock Exchange: HSBCHSBC
) is up 3% YTD compared to a 14% decline in the S&P 500 Index over the same period.Additionally, at the current price of $31 per share, it is 27% below its fair value of $43 – Treffis estimates HSBC rating. Company beats consensus estimates of revenue and earnings on total GAAGAA
P’s revenue increased 2% year over year to $12.8 billion. This was driven by a 12% year-over-year increase in the Global Banking & Markets segment (which includes Treasury & Security Services, Sales & Trading and Investment Banking) and an 11% increase in the Commercial Banking segment. Notably, the company’s net interest income rose 13% to $7.5 billion in the fourth quarter on higher interest rates and higher interest-bearing assets. Conversely, revenue growth was partially offset by lower Wealth & Personal Banking and corporate revenues. Adjusted net income increased 62% year-over-year to $5.5 billion despite slightly higher revenue. This was primarily due to tax credits received in the fourth quarter from his $1.8 billion deferred tax asset gain from the recognition of tax loss carryforwards.

The company’s top line in 2021 was $49.6 billion, down 2% year over year. This was primarily due to lower FICC (fixed income, currencies and commodities) trading revenues followed by a slight decline in the Wealth & Personal Banking segment. In addition, banks suffered in terms of NII, which fell 4% year-on-year due to the low interest rate environment. That said, adjusted net income more than tripled from $3.9 billion to $12.6 billion, largely due to a favorable reduction in loan loss reserves.

The company reported GAAP revenue of $25.2 billion in the first half of 2022. HSBC earnings It is expected to reach $53 billion for the full fiscal year 2022. In addition, HSBC’s adjusted net profit margin is likely to rise slightly this year, and the bank’s adjusted net profit could reach his $13.5 billion. Combine that with annual EPS of $3.33 and a P/E multiple of just under 13x for a valuation of $43.

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