HSBC’s numbers yesterday have caused some head-scratching at Canadian bank RBC, which despite assuming that changes to guidance meant a 4% upgrade to next year’s profits has cut its own forecasts.
Shares in HSBC also took a heavy hit yesterday, which RBC attributes to a combination of the departure of the CFO and possible cost implications, worries over Chinese property and lower loan growth guidance.
RBC has cut its profit forecast for 2023 by 1% to reflect lower margins in Hong Kong but on a prospective dividend yield of 6.6% and a price target of 675p has kept an outperform rating.