HSBC share price declined on Wednesday as investors took profit following the release of its financials. The company announced a $1.3 billion jump in pre-tax quarterly profit for the three-month period ending December 2024 to $2.3 billion. Full year pre-tax profits were at $32.31 billion, up from $30.35 billion for the corresponding quarter in 2023.
Earnings Per Share (EPS) grew by $0.10 to $1.24 for the full year, and the bank announced a $2 billion share buyback program, which it aims to complete before the end of Q1 2025. This will provide support to HSBC share price in the coming weeks. Also, the company announced a $0.36 dividend for the December quarter, a rise of 16%. Furthermore, it is undertaking a structural adjustment program aimed at saving $1.5 billion by 2026.
On the downside, HSBC (LSE: HSBA) saw its revenues for the full year decline by 0.6% to $65.85 from the previous year’s $66.06 billion. Also, net interest margins were down by $3.1 billion for the full year to $32.7 billion and operating expenses rose by 1% to $1 billion. However, the $300 million per year cost cutting measures could help alleviate that. Nonetheless, HSBC share price is near twenty-year highs and investors will likely be upbeat about its ability to stay on the growth path.
HSBC Share Price Prediction
HSBC share price pivots at $900 and the sellers will be in control if action stays below that level. That will likely seethe first support come at $887. However, a stronger downward momentum will break below that level and could test the second support at $880.
Conversely, going above $900 will shift the momentum to the upside. If that happens, the stock is likely to encounter the first resistance at $907. Breaking above that level will invalidate the downside narrative and could clear the path to test the second resistance at $915.
