“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.”
Trading update
HSBC shares gained 4.88% in early trading in London on Monday as it reported its Q3 results, despite posting a fall in profits for the period.
The stock opened at 614.20p and was joined by fellow financials Old Mutual, Prudential and Standard Chartered in the FTSE 100’s top 20 gainers on Monday.
The FTSE 100 as a whole was up 1.55% to 6796 by late morning.
