HONG KONG: A 32% rally this year has catapulted HSBC Holdings Plc’s shares to their highest level in four years, with improving margins potentially providing further support for the stock.
Better net interest margin due to a rebound in Hibor — Hong Kong’s interbank lending rates — as well as expectations for further share buybacks have helped boost investor sentiment, analysts said. The bank announced a US$2 billion share buyback plan and resumed paying quarterly dividends in May.
The bank’s Asia focus provides “better growth prospects than its European and Chinese peers”, said Francis Chan, a Bloomberg Intelligence analyst. It’s also little impacted by the global banking crisis in March given its ample capital buffer and liquidity, he added.
Shares of the London-headquartered lender advanced for a seventh day on Friday, on track for the longest rising streak since January 2022.