Starting this week’s round of bank results is HSBC PLC, after fellow FTSE 100 lenders Standard Chartered and NatWest last week.
Fourth-quarter results on Tuesday from the ‘global bank’ will come with investors mindful that fellow Asia-focused StanChart failed to excite with its numbers a week ago.
UBS has pencilled in US$3,915mln for an underlying profit before tax, up 77% from the final quarter of 2020.
“Within this, we expect net interest income to be down 2% YoY [year-on-year], with lower NIM [net interest margin], and non-interest income to be up 3% YoY for total income flat YoY.
“Costs are expected to be 6% lower YoY, with lower expected UK Bank levy, for pre-provision profit growth of 23%,” it added.
Smith & Nephew to stop stumbling?
Shares in the hip and knee replacement maker Smith & Nephew PLC (LSE:SN) have stumbled more than a fifth in the past year, with supply chain issues, higher shipping costs and increased investment all weighing on the bottom line.
COVID has also hit the top line, with joint replacement operations among many surgical procedures to have hit by hospitals focusing on the pandemic.
"That might mean Smith & Nephew could be a surprise beneficiary if, as and when the virus is finally beaten off,” said analysts at AJ Bell.
In December, S&N chief executive Roland Diggelmann outlined a new “strategy for growth”, targeting compound organic revenue growth of 4%-6% a year out to 2024, along with operating margin of 21% by 2024 (with further improvements in return on sales after that).
Said the AJ Bell analysts: “The 2021 results will not be a fair test of those goals but any comment made on the outlook for 2022 will be viewed in the context of the first steps to reaching those targets.”
Significant announcements expected on Tuesday 22 February
Interims: Blancco Technology Group PLC, Bluefield Solar Income Fund Limited, Hargreaves Lansdown PLC, Oxford Cannabinoid Technologies PLC, Petra Diamonds, Springfield Properties PLC
Finals: Antofagasta PLC, Bank of Georgia Group PLC, Coca-Cola, HSBC Holdings PLC, InterContinental Hotels Group PLC, Smith & Nephew PLC, Synectics PLC, Thungela Resources Ltd
AGMs: Aberdeen Diversified Income and Growth Trust PLC, Image Scan Holdings PLC
Economic data: Public Sector Net Borrowing (UK), Consumer Confidence (US)