HSBC Surges After U.S. Stress-Test Pass Boosts Payout Prospects
- Bank may buy back $3.2 billion of stock, KBW analysts estimate
- Shares trading near a four-year high in London after 4.9% jump
Fed Stress Test Shows U.S. Gap With European Banks
This article is for subscribers only.
HSBC Holdings Plc surged to trade near a four-year high after the bank’s North American unit passed the Federal Reserve’s stress test, clearing the way for more than $3 billion of capital to be returned to shareholders, analysts estimate.
The Fed told Europe’s largest bank it has more than enough capital, sending the shares up as much as 4.9 percent, the most since November, on speculation that the bank will increase its buyback program. HSBC has already bought $3.5 billion of stock since August.