HSBC (0005) is projected to have more than doubled its pre-tax profit in the first quarter of this year from 12 months ago.
The bank is also expected to announce the resumption of a quarterly dividend of between 8 to 10 US cents (62.4 to 78 HK cents) today.
Morgan Stanley expects the London-based lender's profit before tax to jump 1.22 times to US$9.2 billion, while rival JP Morgan sees the figure up by 1.18 times to US$9.1 billion, partly driven by a US$2 billion reversal of the previously recognized impairment from the sale of the French retail banking operations. HSBC said last month that the planned disposal could be delayed or fail as interest rate hikes increase the buyer's capital requirements.
Net interest income is forecast to rise to around US$9 billion while the net interest margin is expected to reach 1.66 percent by investment banks. The common equity tier 1 ratio may stay between 13.5 and 14.5 percent.
JP Morgan estimates that HSBC will buy back US$10 billion worth of shares through 2025 and around US$4 billion from the US$10 billion Canadian business disposal will be distributed as a special dividend of 21 US cents per share and the rest may be used in the buyback.
A US$2 billion share repurchase may be carried out this year, said Goldman Sachs, who maintained a buy rating for HSBC with a target price of HK$75.
Friday's annual general meeting is another focus for HSBC investors, where two proposals - structural reform and restoring a fixed dividend - will be up for a vote.
