(Hong Kong) The Hang Seng Index opened down by 5 points, or 0.02%, at 23,472 points, while the Hang Seng China Enterprises Index rose by 3 points, or 0.04%, to 8,670 points. The Technology Index also experienced a modest increase, gaining 5 points, or 0.09%, to reach 5,864 points.

Technology stocks showed a generally strong performance, with Tencent rising by 0.9% and Tencent Music surging by 9.2% after being included in the Tech Index. Other notable gains included Meituan, which increased by 1.1%, and Xiaomi, up by 0.9%. Alibaba saw a slight rise of 0.2%, while JD.com edged up by 0.1%. Conversely, Kuaishou experienced a decline of 2.5%.

Financial stocks lagged behind, with HSBC remaining unchanged, AIA falling by 0.5%, China Ping An decreasing by 0.2%, and the Hong Kong Stock Exchange dropping by 0.8%.

HSBC Holdings (LON:HSBA) has reported its full-year results for 2024, revealing a revenue of US$61.3 billion, reflecting an increase of 8.7% from the previous year. However, net income rose only modestly to US$22.9 billion, marking a 2.2% increase. The bank's profit margin declined to 37%, down from 40% in FY 2023, primarily due to rising expenses.

Earnings per share (EPS) improved to US$1.25, up from US$1.15 in FY 2023. However, key banking performance indicators showed some deterioration: the net interest margin (NIM) decreased to 1.56% from 1.66%, while the cost-to-income ratio increased to 50.2%, up from 48.5%. Additionally, non-performing loans rose to 2.41%, up from 2.04% in the previous year.

Despite the growth in revenue, HSBC's results fell short of analyst expectations, missing revenue estimates by 1.1% and EPS estimates by the same margin. The Wealth and Personal Banking segment was the primary revenue driver, contributing US$27.3 billion, or 45% of total revenue. Meanwhile, general and administrative costs represented the largest operating expense, amounting to US$30.8 billion, which constituted 80% of total expenses.

Looking forward, HSBC anticipates an average revenue growth of 3.6% per annum over the next three years, compared to a 4.6% growth forecast for the UK banking industry. Despite the mixed results, the company's shares have seen a modest increase of 1.9% over the past week.

Source: Dimsumdaily.HK