Global banking giant HSBC Holdings is expected to deliver today an 8.3 percent profit increase for last year, helped by continued strong growth in emerging markets, analysts said.
HSBC is expected to report pretax profit before goodwill of US$20.5 billion for last year under international accounting standards, up from a restated US$18.943 billion a year earlier.
Individual forecasts range from US$20 billion to US$21.3 billion.
"I expect a pretty good growth from HSBC," said Ben Kwong, head of research at KGI Asia.
HSBC is expected to report rising revenues in emerging markets. It is also likely to point to a stronger performance in Hong Kong, its largest single market, helped by an upturn in consumer spending.
Investors will be looking for confirmation that a program of heavy investment in HSBC's investment banking division is tapering off.
At its interim results last August, HSBC said that with the investment program now largely complete, expenditure on the division would fall "significantly."
Some analysts believe the investment banking unit will deliver a strong rise in second-half profit, reversing a decline during the first six months of the year, thanks to a recent upturn in advisory work.
"Everybody expects HSBC to report growth in earnings, but whether it is a single or double-digit increase it is something that is keenly awaited," said Kitty Chan, director at Rexcapital Asset Management.
The market will also be focusing on bad debts at HSBC's British operation. The bank was one of the first to warn that more British consumers were having difficulty repaying their debts. It said in a December trading statement that arrears levels were improving thanks to a tighter lending criteria.
HSBC, which generates more than two-thirds of its profit in Asia and the US, is better insulated against the deteriorating British credit environment than its British peers.
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