Europe Movers: Credit Suisse, HSBC, IHG, Smith & Nephew

Bridgette Randall
21 Feb, 2023
Frankfurt

HSBC Holdings Plc declined 1.8% to 609.50 pence despite the global bank reported a rise in earnings. 

Fourth quarter revenue increased 24% to $14.9 billion and profit before-tax increased by $2.5 billion to $5.2 billion. 

Estimated credit losses in the quarter jumped to $1.4 billion from $0.5 billion largely because of the exposure to commercial real estate in mainland China and UK corporate loans. 

The company estimated net interest income in 2023 of at least $36 billion and the global bank revised higher credit impairment charges to 40 basis points from 30 basis points. 

In 2022, revenue increased 4% to $51.7 billion and pre-tax income fell by $1.4 billion to $17.5 billion. 

Profit after-tax increased $2.0 billion to $16.7 billion,  including a $2.2 billion credit linked to the recognition of a deferred tax asset.

Intercontinental Hotels Group declined 1.2% to  5,526.88 pence despite the UK-based hotel chain reporting a surge in revenue and earnings and announced a stock repurchase program. 

The company plans to repurchase $750 million of its stock in 2023 and increased its final dividend by 10% to 94.5 U.S. cents, resulting in a total dividend of 138.4 cents. 

Total revenues increased 34% to $3.8 billion and operating income rose 27% to $628 million from the previous year. 

Diluted earnings per share increased to 207.2 cents from 145.4 cents in the previous year. 

Credit Suisse AG declined 4.2% to Sfr 2.66 after the Swiss Financial Market Supervisory Authority, Finma, said it plans to review the recent statement from the company's chairman Axel Lehman. 

Chairman Lehman had indicated in the statement that the net asset outflows stabilized in December. 

Smith Nephew Plc increased 4.2% to 1,210.50 pence after the company reported a less-than-expected drop in annual profit. 

Fourth quarter revenue increased 1.4% to $1.37 billion from the previous year. 

Revenue in 2022 increased 0.1% to $5.2 billion and operating profit declined to $450 million from $593 million and diluted earnings per share fell to 25.5 cents from 59.8 cents a year ago.