“Investors should appreciate that costs continue to be cut and its capital cushion was beefed up, which could support dividends ahead and possible future share buybacks,” he said.
Spooner added: “Income seekers in the banking sector have been hit hard in recent years. HSBC has remained a significant payer and though progress may continue to be slow in the face of many challenges, we believe the shares could be a better option than other banks.
“The bank is viewed as being more conservatively managed with a superior balance sheet and deposits. We recommend HSBC as a ‘buy’ for contrarian investors, but would suggest investors build a holding over time as there is no quick fix for the sector.”
