Thursday 16 September 2010

Market report: HSBC could double dividend, say analysts

HSBC was in focus as City analysts suggested the banking behemoth could double the size of its dividend from its 2009 low.

 
By Ben Harrington
Published: 9:07PM BST 15 Sep 2010

FTSE 100
"We think the rebound in profitability and confirmation of Basel capital requirements will allow the bank to step up its dividend materially," said Michael Helsby, an analyst at Bank of America Merrill Lynch.
Mr Helsby argued that even after factoring in a higher dividend, HSBC would have around $15bn (£9.6bn) of surplus capital by 2012.
"Investor perception of HSBC is dominated by the outlook for interest rates. Consensus suggests that HSBC cannot turn around its operating performance without an [interest] rates increase. We are more bullish," said Mr Helsby, as he raised his target price on the stock to 905p and reiterated his "buy" rating.

He concluded: "The bank's risk appetite has recovered and in our view top line growth will respond."
HSBC shares edged up 0.4 to 676.6p.

http://www.telegraph.co.uk/finance/markets/marketreport/8005404/Market-report-HSBC-could-double-dividend-say-analysts.html

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