Russ Mould, investment director at AJ Bell, said: “Buybacks are back on the menu at HSBC but rather than getting their knives and forks out ready to dine out on the shares, investors treated this offering with a shrug.
“The muted share price reaction follows an extremely strong showing so far this year as HSBC benefits from growth in areas like wealth management and insurance and from persistently higher interest rates.
“A blockbuster year-on-year jump in pre-tax profit largely reflects the impact 12 months ago of impairments linked to a Chinese lender and restructuring costs, but revenue was also materially higher and ahead of forecasts.
“Confidence in the future is reflected in some modest upwards tweaks to medium-term guidance, enhanced cost savings targets and in CEO Georges Elhedery’s suggestion that having spent the first two years of his tenure building a stronger HSBC the next part is about putting those strengths to work.
“The return for buybacks follows the pause imposed since the bank announced a deal last year to take Hang Seng Bank private, suggesting that having steered this supertanker of a business on to the course he wants, it is now full steam ahead with Elhedery at the helm.”
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