HSBC share price: what to expect from its Q1 results

When is HSBC’s results date?

HSBC will release its Q1 results on May 3.

HSBC results preview: what does the City expect?

HSBC managed to record strong growth in 2018 despite the banking sector bogged down by a myriad of macroeconomic headwinds, with Brexit, trade disputes between the US and China and a slowing global economy.

In fact, the lender saw its revenue and pre-tax profit rise by 5% and 16% respectively last year. HSBC’s share price, however, has fluctuated significantly, with the bank’s stock losing more than 20% last year from a high of £7.91 back in January to £6.00 in late-October.

Since then, the lender’s share price has regained some of its losses, with the stock rallying more than 8% over the last month, sitting at £6.60 levels as of Thursday 2:15pm GMT, but there is still a lot of work to do in 2019 if the bank is to claw back the ground it has lost.

In a bid to recoup its losses HSBC continues to invest in high-growth markets like Asia, with the continent accounting for a significant portion of its revenue and profit growth last year. The lender is banking on the region to propel it forward this year, with China’s belt and road infrastructure plans key to offsetting sluggish growth in Europe.

However, cracks have begun to show in China’s economy, but a recent round of government stimulus has helped stabilise the situation.

In fact, the International Monetary Fund (IMF) downgraded its economic forecasts for every major economy this year except for China, with the organisation predicting a 6.3% rise in GDP, up from an earlier mark up of 6.2%.

Meanwhile, the ongoing trade dispute between the US and China that plagued markets in 2018 appears to be nearing its conclusion, with investors growing increasingly optimistic about a deal being struck in the near-term.

An end to the trade war would alleviate a substantial amount of pressure on the global economy and on the banking sector which has suffered at the hand of an economic outlook surrounded by uncertainty.

Overall, HSBC has managed to weather the myriad of economic headwinds relatively well, with the sheer size and scale of the business helping it to do so. Its size will no doubt help it perform well in the months ahead, especially compared to its smaller rivals like Lloyds and Barclays.