(Bloomberg) -- HSBC Holdings Plc and Standard Chartered Plc, along with Singapore lenders, will report earnings against a backdrop of slow loan growth.
Net interest margins for Hong Kong banks probably remained under pressure from falling Hibor rates in the second quarter, which could impact HSBC and Standard Chartered, according to Morgan Stanley.
HSBC’s incoming Chief Executive Officer Georges Elhedery will face the challenge of increasing revenue as rates fall and is expected to step up cost efforts, Bloomberg Intelligence said. Standard Chartered is set to meet the higher end of the net interest income guidance in 2024, thanks to a supportive rate environment, BI added. Both banks are expected to announce fresh buybacks.
Singapore banks Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. might see overall lending pick up in the second half, although weak business demand could drag on for a few more months, BI said. Singapore’s central bank kept its tight monetary policy settings unchanged even as a resilient local currency tempers price pressures.
India’s ICICI Bank Ltd. reported better-than-expected results for the first quarter on Saturday as demand for loans held strong and boosted its interest income.
Highlights to look out for:
Tuesday: Standard Chartered (STAN LN) is expected to announce another $1 billion share buyback, according to analysts at Jefferies and Morgan Stanley. Margins were probably steady versus a quarter earlier, and net interest income may have jumped 28%, estimates show.
- Nomura’s (8604 JP) wealth management likely kept its momentum with double-digit revenue growth, thanks to elevated market volumes, BI said. Investment banking flows may be down quarter on quarter, while the weaker yen might raise costs for its wholesale business.
Wednesday: HSBC’s (HSBA LN) margins were likely supported by easing deposit competition in Hong Kong and relatively stable Hibor rates, BI said. The focus will be on potential revenue-boosting strategies that may come in late 2024 under the new CEO. HSBC concluded its $3 billion buyback program on Monday.
- Singapore Air’s (SIA SP) first-quarter profit was probably hit by higher fuel costs, with analysts at Nomura saying its fuel-hedging positions have become less favorable. Passengers carried were up almost 14% in the first quarter. UOB Kay Hian expects the ongoing freight disruption due to Red Sea attacks to keep airfreight rates high in the second half of 2024 and support fiscal 2025 earnings.
- Samsung (005930 KS) probably saw stable sales growth in its mobile division as it unveiled new Galaxy smartphones earlier this month, BI said. The company earlier reported its fastest sales growth in years for the quarter, as AI demand drove a recovery in memory chip sales. The firm posted a 15-fold surge in operating profit in the June quarter earlier in its preliminary results.
- Bank Mandiri (BMRI IJ) second-quarter earnings were likely supported by strong loan growth. Year-on-year loan growth hit 11.5% in June for Indonesian banks, according to Bank Indonesia data.
- Mizuho (8411 JP) will probably say net interest income rose for the first time in seven quarters.
Thursday: UOB’s (UOB SP) second-quarter net income was likely pressured by lower mortgage growth amid Singapore’s property cooling measures and margin pressure, BI said.
- MUFG’s (8306 JP) quarterly profit likely dropped 24%, according to consensus. Its top executives earlier took pay cuts as they sought to restore client confidence after breaching information firewalls.
Friday: OCBC’s (OCBC SP) revenue growth may have been held back as loan growth remained low, while strong fee income, led by the wealth business, provided a boost, BI said.
- Nintendo’s (7974 JP) first-quarter operating profit likely slid 49%, consensus shows, though the launch of Paper Mario: The Thousand-Year Door and Luigi’s Mansion 2 HD games should provide some respite. The firm’s market dominance in Japan depends on the anticipated launch of its new Switch console, which could revive growth in fiscal 2026, BI said.
- SMFG’s (8316 JP) quarterly profit likely grew 13%, according to estimates.
(Updates throughout.)
©2024 Bloomberg L.P.
