Investors anticipate hike in HBSC's dividend after bank guides brokers

HSBC has been informally guiding brokers to expect a significant increase in its dividend next year.<br /><br />The bank has said it will pay out up to 50 per cent of post-tax profits in dividends, City A.M. has learnt. Based on the higher end of consensus earnings figures that would result in a payout to shareholders of 45p per share &ndash; a dramatic increase on the 20p due to be paid out this year. <br /><br />The news comes as the group&rsquo;s shares rose strongly on news of third quarter profits that are expected to be &ldquo;significantly ahead&rdquo; of the same period in 2008.<br /><br />Group chief executive Michael Geoghegan said HSBC&rsquo;s investment banking arm was on track for a &ldquo;record&rdquo; year thanks to its exposure to Asian markets, which have recovered more quickly than western economies.<br /><br />One fund manager described HSBC as &ldquo;the best capitalised, best liquidity-profile bank&rdquo; on the market.<br /><br />HSBC&rsquo;s shares closed 0.9 per cent up yesterday at 726.1p.<br /><br />HSBC declined to comment.