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HSBC Stock Down On Weak FY20 Results, To Pay Dividend

Shares of HSBC Holdings Plc were losing around 2 percent in London trade as well as in pre-market activity on the NYSE after the Asia-focused British lender reported Tuesday sharp drop in fiscal 2020 profit with weak revenues and margin. Further, the company announced dividend.

Looking ahead, the company said it no longer expects to reach return on average tangible equity or RoTE target of between 10 percent and 12 percent in 2022 as originally planned, due to the significant changes in its operating environment during 2020.

The bank said it will now targets RoTE of greater than or equal to 10 percent in the medium term.

HSBC said it will continue to target an adjusted cost base of $31 billion or less in 2022, and a gross RWA reduction of over $100 billion by the end of 2022.

Further, the Board has announced an interim dividend for 2020 of $0.15 per ordinary share, to be paid in cash with no scrip alternative. The company said it will not be paying quarterly dividends during 2021 but will consider whether to announce an interim dividend at first-half results.

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