European Regional Development Fund

Half the price in 5 years

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  • Bugeja4455 (1 year ago)

    Half the price in 5 years
    In 5 years, HSBC share price went from €3.20 (and even higher at times) to €1.60. Are we expecting the price to stabilise at current rate or perhaps increase in the coming months?
  • Bugeja4455 (7 months ago)

    It seems there is an appreciation of HSBC business efforts. Shares are trading €2.05 ex dividend, and holding to that. Is this a reflection of improved economy and recovery of financial sector? This looks very positive in preparation to more favourable interest rates when announced.
  • Grech293 (7 months ago)

    @Bugeja4455, I believe that the higher share price reflects the expectation of higher interest rates. HSBC holds around EUR3.3m of loans to customers and around an additional EUR2.4m of investments (mainly bonds).

    If HSBC manages to earn an increase of 0.5% on these assets (net of any higher interest expense), the group will post an additional EUR28.5m of Net Interest Income. If all other expenses remain the same - that represents a 50% increase in Profit Before Tax.
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