HSBC shares hit 20-year high ahead of results as bank 'to start job cuts this week'

HSBC's share price soared to a 20-year high on Tuesday morning, reaching levels not seen since before the financial crisis.

The FTSE 100 lender is set to announce its annual results tomorrow morning, marking the first set of results under the leadership of Georges Elhedery, as reported by City AM.

The bank's stock surged to 894.70 following the market opening, its highest price since 2001. HSBC is scheduled to report earnings on Wednesday.

Bloomberg analysts predict earnings of £25.2bn for 2024, an increase from £24.1bn in 2023. Job cuts at the lender's investment banking division are anticipated to commence this week, according to Bloomberg.

Elhedery, who succeeded former group chief Noel Quinn in September, is expected to save the group £1.2bn through his reorganisation plans. The Financial Times reports that the full extent of the cuts will be disclosed on Wednesday.

HSBC's earnings follow those of Barclays and Natwest, both of which announced their 2024 results last week.

Richard Hunter, head of markets at Interactive Investors, commented: "The story so far for Barclays and Natwest has been one of strong results but a muted market reaction, partly in response to both shares having doubled over the last year and therefore being subject to higher expectations."

"Gains in the share prices at the three remaining banks have also been notable over the last year, with HSBC having added 38 per cent, Lloyds 46 per cent and Standard 89 per cent, thus making them susceptible to a similar reception. "