HSBC shares jump on earnings beat

October 27, 2020 10:00

Shares in Europe's largest bank by assets, HSBC, jumped higher in Asia on a surprise earnings beat. This comes even as the bank reported a 36% fall on year-on-year profits.

  • Third-quarter profit $3.07 billion vs $2.07 billion expected.
  • Revenue of $11.93 billion for the quarter.
  • 1% decline in operating expenses compared with a year ago.
  • Total provisions to be at the lower end of its $8 billion to $13 billion estimates.

HSBC's results come after many other European banks have also beaten analyst expectations. While the sector has been affected by the coronavirus pandemic and low-interest rates, many analysts believe the worst is over.

However, HSBC's share price is still down around 45% this year moving towards historic lows not seen since the 2008 financial crisis. The bank is undergoing a major restructuring plan to try and slash costs even further, with a plan to cut 35,000 jobs earlier in the year put on hold due to the pandemic. A full, detailed plan is due to be provided in February 2021.

Did you know that you can speculate on the direction of HSBC's share price using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!

How to trade HSBC shares with Admiral Markets UK Ltd

If you are feeling bullish or bearish on the price of HSBC's share price you can speculate on its price direction using CFDs. To get started, follow these five simple steps:

  1. Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
  2. Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
  3. Type in HSBC, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
  5. Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.

Source: Admiral Markets MetaTrader 5 Web, #HSBC, Weekly - Data range: May 18, 2014, to October 27, 2020, performed on October 27, 2020, at 6:53 am BST. Please note: Past performance is not a reliable indicator of future results.

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