Rising Rates To Cushion Impact On Asia Banks From Slowing Economies.

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Asia-focused lenders HSBC (HSBA.L), Standard Chartered (STAN.L) and their Southeast Asian peers such as DBS (DBSM.SI); are set to report an improvement in second-quarter net interest income, a key source of revenue, benefiting from higher interest rates.

But analysts warn that rising credit impairments and weak financial markets could weigh on banks’ performance. HSBC is expected to post a 22% fall in pre-tax profit to $3.98 billion in the second quarter. This is based on consensus analyst estimates compiled by the bank. It reports results on Aug 1.

StanChart, which unveils its numbers, is expected to report statutory pre-tax profit of $989 million; down 14% on the year, according to consensus analyst estimates compiled by the bank.

Beyond the numbers, investor focus will be on HSBC’s response to a break-up proposal put forward by its biggest shareholder, Ping An Insurance Group Co of China (601318.SS)

In India, HDFC Bank , the country’s largest private lender, kicked off banks’ results with a 19% rise in quarterly net profit as provisions for bad loans dropped and loan growth picked up. But the results came below market estimates.


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